Document:

Exhibit
10.3

 

LOCK-UP
AGREEMENT

 

Lock-Up
Agreement (this “Agreement”) is entered into as of December 22,
2004, by and between CardioTech International, Inc., a Massachusetts
corporation (the “Company”), and the shareholder of the Company named on
the signature page hereof (the “Shareholder”).

 

RECITALS:

 

A.                                   The Company and certain purchasers (the “Purchasers”),
have entered into a Securities Purchase Agreement dated as of December 22,
2004 (the “Purchase Agreement”), pursuant to which the Purchasers have
agreed to purchase, and the Company has agreed to sell, shares of the Company’s
common stock, par value $0.01 per share (the “Common Stock”), warrants
to purchase shares of Common Stock, and additional investment rights to
purchase shares of Common Stock.

 

B.                                     Shareholder is a shareholder of the Company
and owns and/or controls shares of Common Stock (the “Shares”).

 

C.                                     As a condition to the Purchasers entering
into the Purchase Agreement, Shareholder has agreed to the lock-up set forth in
Section 1 hereof.

 

D.                                    Capitalized terms used in this Agreement but
not otherwise defined herein shall have the meanings ascribed to such terms in
the Purchase Agreement.

 

AGREEMENTS:

 

NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

 

1.                                       Lock-Up. Shareholder hereby agrees that, except as set forth in Section 2
below, from the date hereof until the 90th day following the date
that the Registration Statement is declared effective by the Commission (the “Lock-up
Period”), without the prior written consent of the Company and the
Purchasers, he will not offer, pledge, sell, contract to sell, grant any
options for the sale of or otherwise transfer, distribute or dispose of,
directly or indirectly (collectively “Dispose of”), any Shares (the “Lock-up”).
On and after the 1st day following the last day of the Lock-up
Period, no Shares shall be subject to the Lock-up.

 

2.                                       Permitted Dispositions. The following dispositions of Shares shall
not be subject to the Lock-up set forth in Section 1:

 

1

 

(a)                                  Shareholder may Dispose of Shares to his
spouse, siblings, parents or any natural or adopted children or other
descendants or to any personal trust in which any such family member or
Shareholder retains the entire beneficial interest;

 

(b)                                 Shareholder may Dispose of Shares on his
death to Shareholder’s estate, executor, administrator or personal
representative or to Shareholder’s beneficiaries pursuant to a devise or
bequest or by laws of descent and distribution;

 

(c)                                  Shareholder may Dispose of Shares as a gift
or other transfer without consideration;

 

(d)                                 Shareholder may make a bona fide pledge of
Shares to a lender; and

 

(e)                                  Shareholder may Dispose of, through bona fide
market sale transactions, up to 15,000 Shares during the Lock-up Period.

 

provided, however, that in the case of any transfer of Shares pursuant to clauses (a),
(c), and (d), the transferor shall, at the request of the Company, provide
evidence (which may include, without limitation, an opinion of counsel
satisfactory in form, scope and substance to the Company in its sole discretion
as the issuer thereof) satisfactory to the Company that the transfer is exempt
from the registration requirements of the Securities Act of 1933, as amended.

 

In
the event Shareholder Disposes of Shares described in this Section 2, such
Shares shall remain subject to this Agreement and, as a condition of the
validity of such disposition, the transferee shall be required to execute and
deliver a counterpart of this Agreement. Thereafter, such transferee shall be
deemed to be the Shareholder for purposes of this Agreement.

 

3.                                       Miscellaneous.

 

(a)                                  Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given other than as initially agreed upon in
writing by the Company, Shareholder and the Purchasers.

 

(b)                                 Successors and Assigns. Shareholder shall not assign any rights or
benefits under this Agreement without the prior written consent of the Company
and the Purchasers.

 

(c)                                  Counterparts. This Agreement may be executed in a number
of identical counterparts and it shall not be necessary for the Company and
Shareholder to execute each of such counterparts, but when each has executed
and delivered one or more of such counterparts, the several parts, when taken
together, shall be deemed to constitute one and the same instrument,
enforceable against each in accordance with its terms.  In making proof of this Agreement, it shall
not be necessary to produce or account for more than one such counterpart
executed by the party against whom enforcement of this Agreement is sought.

 

2

 

(d)                                 Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

 

(e)                                  Governing Law; Venue. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MASSACHUSETTS, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OR CHOICE OF LAW. The Company and Shareholder
(i) hereby irrevocably submit to the non-exclusive jurisdiction of the United
States District Court sitting in the Northern District of Texas and the courts
of the State of Texas located in Dallas County for the purposes of any suit,
action or proceeding arising out of or relating to this Agreement, and (ii)
hereby waive, and agree not to assert in any such suit, action or proceeding,
any claim that he or it is not personally subject to the jurisdiction of such
court, that the suit, action or proceeding is brought in an inconvenient forum
or that the venue of the suit, action or proceeding is improper.

 

(f)                                    Severability. If any provision of this Agreement is held
to be illegal, invalid or unenforceable under present or future laws effective
during the term of this Agreement, such provision shall be fully severable;
this Agreement shall be construed and enforced as if such illegal, invalid or
unenforceable provision had never comprised a part of this Agreement; and the
remaining provisions of this Agreement shall remain in full force and effect
and shall not be affected by the illegal, invalid or unenforceable provision or
by its severance from this Agreement. Furthermore, in lieu of each such
illegal, invalid or unenforceable provision, there shall be added automatically
as a part of this Agreement a provision as similar in terms to such illegal,
invalid or unenforceable provision as may be possible and be legal, valid and
enforceable.

 

(g)                                 Entire Agreement. This Agreement is intended by the Company
and the Shareholder as a final expression of their agreement and is intended to
be a complete and exclusive statement of their agreement and understanding in
respect of the subject matter contained herein. 
This Agreement supersedes all prior agreements and understandings
between the Company and the Shareholder with respect to such subject matter.

 

(h)                                 Third Party Beneficiaries. This Agreement is intended for the benefit
of the Company, Shareholder and the Purchasers and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision
hereof be enforced by, any other person or entity. The Company and Shareholder
each specifically acknowledge and agree that each Purchaser is a third party
beneficiary of this Agreement.

 

3

 

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

 

	
   

  	
  CARDIOTECH
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Michael Szycher, Ph.D., Chairman
  & CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “SHAREHOLDER”:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  (signature)

  
	
   

  	
   

  
	
   

  	
  Title
  of signatory:

  	
   

  	
   

  
	
   

  	
  (if
  not an individual)

  
							

 

4EXHIBIT 4.1

 

 

 

INDENTURE

 

Dated as of December 17, 2004

 

Among

 

HUNTSMAN INTERNATIONAL LLC, as Issuer,

 

each of the Guarantors named herein

 

and

 

Wells Fargo Bank, National Association, as Trustee

 

$175,000,000

 

73/8% Senior Subordinated Notes due 2015

 

€135,000,000

 

71/2% Senior Subordinated Notes due 2015

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  I DEFINITIONS AND INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
   

  
	
  Section
  1.01

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  1.02

  	
  Incorporation
  by Reference of TIA

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  1.03

  	
  Rules
  of Construction

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II THE NOTES

  
	
   

  	
   

  	
   

  
	
  Section
  2.01

  	
  Form
  and Dating

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.02

  	
  Execution
  and Authentication; Aggregate Principal Amount

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.03

  	
  Registrar
  and Paying Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.04

  	
  Paying
  Agent To Hold Assets in Trust

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.05

  	
  Holder
  Lists

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.06

  	
  Transfer
  and Exchange

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.07

  	
  Replacement
  Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.08

  	
  Outstanding
  Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.09

  	
  Treasury
  Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.10

  	
  [Intentionally
  Omitted]

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.11

  	
  Cancellation

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.12

  	
  Defaulted
  Interest

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.13

  	
  CUSIP Numbers

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.14

  	
  Deposit
  of Moneys

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.15

  	
  Book-Entry
  Provisions for Global Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.16

  	
  Transfer
  and Exchange of Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.17

  	
  Special
  Transfer Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.18

  	
  Issuance
  of Additional Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III REDEMPTION

  
	
   

  	
   

  	
   

  
	
  Section
  3.01

  	
  Notices
  to Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  3.02

  	
  Selection
  of Notes To Be Redeemed

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  3.03

  	
  Notice
  of Redemption

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  3.04

  	
  Effect
  of Notice of Redemption

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  3.05

  	
  Deposit
  of Redemption Price

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  3.06

  	
  Notes
  Redeemed in Part

  	
   

  

 

i

 

	
  ARTICLE IV COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section
  4.01

  	
  Payment
  of Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.02

  	
  Maintenance
  of Office or Agency

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.03

  	
  Limitation
  on Restricted Payments

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.04

  	
  Corporate
  Existence

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.05

  	
  Payment
  of Taxes and Other Claims

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.06

  	
  Maintenance
  of Properties and Insurance

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.07

  	
  Compliance
  Certificate; Notice of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.08

  	
  Compliance
  with Laws

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.09

  	
  Reports
  to Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.10

  	
  Waiver
  of Stay, Extension or Usury Laws

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.11

  	
  Limitations
  on Transactions with Affiliates

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.12

  	
  Limitation
  on Incurrence of Additional Indebtedness

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.13

  	
  Limitation
  on Dividend and Other Payment Restrictions Affecting Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.14

  	
  Change
  of Control

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.15

  	
  Limitation
  on Asset Sales

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.16

  	
  Prohibition
  on Incurrence of Senior Subordinated Debt

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.17

  	
  Limitation
  on Preferred Stock of Restricted Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.18

  	
  Limitation
  on Liens

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.19

  	
  Limitation
  of Guarantees by Restricted Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.20

  	
  Conduct
  of Business

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.21

  	
  Capital
  Stock of Certain Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V SUCCESSOR CORPORATION

  
	
   

  	
   

  	
   

  
	
  Section
  5.01

  	
  Merger,
  Consolidation and Sale of Assets

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  5.02

  	
  Successor
  Corporation Substituted

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI DEFAULT AND REMEDIES

  
	
   

  	
   

  	
   

  
	
  Section
  6.01

  	
  Events
  of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.02

  	
  Acceleration

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.03

  	
  Other
  Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.04

  	
  Waiver
  of Past Defaults

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.05

  	
  Control
  by Majority

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.06

  	
  Limitation
  on Suits

  	
   

  

 

ii

 

	
  Section
  6.07

  	
  Rights
  of Holders To Receive Payment

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.08

  	
  Collection
  Suit by Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.09

  	
  Trustee
  May File Proofs of Claim

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.10

  	
  Priorities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.11

  	
  Undertaking
  for Costs

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.12

  	
  Expenses
  and Services After an Event of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section
  7.01

  	
  Duties
  of Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.02

  	
  Rights
  of Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.03

  	
  Individual
  Rights of Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.04

  	
  Trustee’s
  Disclaimer

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.05

  	
  Notice
  of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.06

  	
  Reports
  by Trustee to Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.07

  	
  Compensation
  and Indemnity

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.08

  	
  Replacement
  of Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.09

  	
  Successor
  Trustee by Merger, Etc

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.10

  	
  Eligibility;
  Disqualification

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.11

  	
  Preferential
  Collection of Claims Against the Company

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII DISCHARGE OF INDENTURE;
  DEFEASANCE

  
	
   

  	
   

  	
   

  
	
  Section
  8.01

  	
  Termination
  of the Company’s Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  8.02

  	
  Acknowledgment
  of Discharge by Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  8.03

  	
  Application
  of Trust Money

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  8.04

  	
  Repayment
  to the Company

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  8.05

  	
  Reinstatement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX AMENDMENTS, SUPPLEMENTS AND
  WAIVERS

  
	
   

  	
   

  	
   

  
	
  Section
  9.01

  	
  Without
  Consent of Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  9.02

  	
  With
  Consent of Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  9.03

  	
  Compliance
  with TIA

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  9.04

  	
  Revocation
  and Effect of Consents

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  9.05

  	
  Notation
  on or Exchange of Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  9.06

  	
  Trustee
  To Sign Amendments, Etc

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  X SUBORDINATION OF NOTES

  
	
   

  	
   

  	
   

  
	
  Section 10.01

  	
  Notes Subordinated to Senior Debt

  	
   

  

 

iii

 

	
  Section 10.02

  	
  Suspension of Payment When Senior Debt Is in Default

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.03

  	
  Notes Subordinated to Prior Payment of All Senior Debt on
  Dissolution, Liquidation or Reorganization of Company

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.04

  	
  Holders To Be Subrogated to Rights of Holders of Senior Debt

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.05

  	
  Obligations of the Company Unconditional

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.06

  	
  Trustee Entitled To Assume Payments Not Prohibited in Absence of
  Notice

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.07

  	
  Application by Trustee of Assets Deposited with It

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.08

  	
  No Waiver of Subordination Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.09

  	
  Holders Authorize Trustee To Effectuate Subordination of Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.10

  	
  Right of Trustee To Hold Senior Debt

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.11

  	
  No Suspension of Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.12

  	
  No Fiduciary Duty of Trustee to Holders of Senior Debt

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI GUARANTEE OF NOTES

  
	
   

  	
   

  	
   

  
	
  Section 11.01

  	
  Unconditional Guarantee

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.02

  	
  Limitations on Guarantees

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.03

  	
  Execution and Delivery of Guarantee

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.04

  	
  Release of a Guarantor

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.05

  	
  Waiver of Subrogation

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.06

  	
  Immediate Payment

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.07

  	
  No Set-Off

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.08

  	
  Obligations Absolute

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.09

  	
  Obligations Continuing

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.10

  	
  Obligations Not Reduced

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.11

  	
  Obligations Reinstated

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.12

  	
  Obligations Not Affected

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.13

  	
  Waiver

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.14

  	
  No Obligation To Take Action Against the Company

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.15

  	
  Dealing with the Company and Others

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.16

  	
  Default and Enforcement

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.17

  	
  Amendment, Etc

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.18

  	
  Acknowledgment

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.19

  	
  Costs and Expenses

  	
   

  

 

iv

 

	
  Section 11.20

  	
  No Waiver; Cumulative Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.21

  	
  Guarantee in Addition to Other Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.22

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.23

  	
  Successors and Assigns

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII SUBORDINATION OF GUARANTEE

  
	
   

  	
   

  	
   

  
	
  Section 12.01

  	
  Guarantee Obligations Subordinated to Guarantor Senior Debt

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.02

  	
  Suspension of Guarantee Obligations When Guarantor Senior Debt Is in
  Default

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.03

  	
  Guarantee Obligations Subordinated to Prior Payment of All Guarantor
  Senior Debt on Dissolution, Liquidation or Reorganization of Such Subsidiary
  Guarantor

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.04

  	
  Holders of Guarantee Obligations To Be Subrogated to Rights of
  Holders of Guarantor Senior Debt

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.05

  	
  Obligations of the Guarantors Unconditional

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.06

  	
  Trustee Entitled To Assume Payments Not Prohibited in Absence of
  Notice

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.07

  	
  Application by Trustee of Assets Deposited with It

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.08

  	
  No Waiver of Subordination Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.09

  	
  Holders Authorize Trustee To Effectuate Subordination of Guarantee
  Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.10

  	
  Right of Trustee To Hold Guarantor Senior Indebtedness

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.11

  	
  No Suspension of Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.12

  	
  No Fiduciary Duty of Trustee to Holders of Guarantor Senior Debt

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 13.01

  	
  TIA Controls

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.02

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.03

  	
  Communications by Holders with Other Holders

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.04

  	
  Certificate and Opinion as to Conditions Precedent

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.05

  	
  Statements Required in Certificate or Opinion

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.06

  	
  Rules by Trustee, Paying Agent, Registrar

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.07

  	
  Legal Holidays

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.08

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.09

  	
  No Adverse Interpretation of Other Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.10

  	
  No Recourse Against Others

  	
   

  

 

v

 

	
  Section 13.11

  	
  Successors

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.12

  	
  Duplicate Originals

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.13

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 13.14

  	
  Independence of Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A-1

  	
  –

  	
  Form of Restricted Dollar Note

  	
   

  
	
  Exhibit A-2

  	
  –

  	
  Form of Restricted Euro Note

  	
   

  
	
  Exhibit A-3

  	
  –

  	
  Form of Dollar Note

  	
   

  
	
  Exhibit A-4

  	
  –

  	
  Form of Euro Note

  	
   

  
	
  Exhibit B

  	
  –

  	
  Form of Legend for Global Notes

  	
   

  
	
  Exhibit C

  	
  –

  	
  Form of Transfer Certificates

  	
   

  
	
  Exhibit D

  	
  –

  	
  Form of IAI Transfer Certificate

  	
   

  
	
  Exhibit E

  	
  –

  	
  Form of Guarantee

  	
   

  

 

Note: This Table of Contents shall not, for
any purpose, be deemed to be part of this Indenture.

 

vi

 

INDENTURE,
dated as of December 17, 2004, among HUNTSMAN INTERNATIONAL LLC, a Delaware
limited liability company (the “Company”), each of the Guarantors named herein,
as guarantors, and Wells Fargo Bank, National Association, a national banking
association, as trustee (the “Trustee”).

 

The Company
has duly authorized the creation of an issue of dollar denominated 73/8% Senior Subordinated Notes due 2015 (the “Dollar Notes”)
and euro denominated 71⁄2% Senior Subordinated Notes due 2015 (the “Euro Notes”
and, together with the Dollar Notes, the “Notes”).  All things necessary to make the Notes, when
duly issued and executed by the Company and authenticated and delivered hereunder,
the valid and binding obligations of the Company and to make this Indenture a
valid and binding agreement of the Company have been done.

 

Each party
hereto agrees as follows for the benefit of the other parties and for the equal
and ratable benefit of the Holders of the Notes:

 

ARTICLE I

 

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01                                Definitions.

 

“Acceleration
Notice” has the meaning provided in Section 6.02(a).

 

“Acquired
Indebtedness” means Indebtedness of a Person or any of its Subsidiaries
existing at the time such Person becomes a Restricted Subsidiary of the Company
or at the time it merges or consolidates with the Company or any of its
Restricted Subsidiaries or assumed in connection with the acquisition of assets
from such Person and in each case not incurred by such Person in connection
with, or in anticipation or contemplation of, such Person becoming a Restricted
Subsidiary of the Company or such acquisition, merger or consolidation, except
for Indebtedness of a Person or any of its Subsidiaries that is repaid at the
time such Person becomes a Restricted Subsidiary of the Company or at the time
it merges or consolidates with the Company or any of its Restricted
Subsidiaries.

 

“Additional
Dollar Notes” means Dollar Notes (other than the Initial Dollar Notes and other
than Exchange Notes issued pursuant to an exchange offer for such Initial
Dollar Notes under this Indenture or issuances under Section 2.07 or 2.16)
issued under this Indenture from time to time in accordance with Sections 2.01,
2.02, 2.18 and 4.12 hereof.

 

“Additional
Euro Notes” means Euro Notes (other than the Initial Euro Notes and other than
Exchange Notes issued pursuant to an exchange offer for such Initial Euro Notes
under this Indenture or issuances under Section 2.07 or 2.16) issued under this
Indenture from time to time in accordance with Sections 2.01, 2.02, 2.18 and
4.12 hereof.

 

 

“Additional
Notes” means the Additional Dollar Notes (if any) and the Additional Euro Notes
(if any).

 

“Adjusted Bund
Rate” means with respect to any redemption date, the mid- market yield, under
the heading which represents the average for the immediately prior week,
appearing on Reuters page AABBUND01, or its successor, for the maturity
corresponding to January 1, 2015 (if no maturity date is within three months
before or after January 1, 2015, yields for the two published maturities most
closely corresponding to January 1, 2015 shall be determined and the Bund yield
shall be interpolated or extrapolated from such yields on a straight line
basis, rounding to the nearest month), plus 0.50%.  The Bund Rate shall be calculated on the
third Business Day preceding such redemption date.

 

“Adjusted
Treasury Rate” means with respect to any redemption date, the rate per annum
equal to the semiannual equivalent yield to maturity of the Comparable Treasury
Issue, assuming a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for
such redemption date, plus 0.50%.

 

“Affiliate”
means, with respect to any specified Person, any other Person who directly or
indirectly through one or more intermediaries controls, or is controlled by, or
is under common control with, such specified Person.  The term “control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative of the foregoing; provided, however,
that none of the Initial Purchasers or their Affiliates shall be deemed to be
an Affiliate of the Company.

 

“Affiliate
Transaction” has the meaning provided in Section 4.11(a).

 

“Agent” means
any Registrar, Paying Agent or Co-Registrar.

 

“Agent Member”
means any member of, or participant in, the Depositary.

 

“Applicable
Procedures” has the meaning provided in Section 2.16(a)(ii).

 

“Asset
Acquisition” means (a) an Investment by the Company or any Restricted
Subsidiary of the Company in any other Person pursuant to which such Person
shall become a Restricted Subsidiary of the Company or of any Restricted
Subsidiary of the Company, or shall be merged with or into the Company or any
Restricted Subsidiary of the Company, or (b) the acquisition by the Company or
any Restricted Subsidiary of the Company of the assets of any Person (other
than a Restricted Subsidiary of the Company) which constitute all or
substantially all of the assets of such Person or comprises any division or
line of business of such Person or any other properties or assets of such
Person other than in the ordinary course of business.

 

“Asset Sale”
means any direct or indirect sale, issuance, conveyance, transfer, lease (other
than operating leases entered into in the ordinary course of business),

 

2

 

assignment or
other transfer for value by the Company or any of its Restricted Subsidiaries
(including any Sale and Leaseback Transaction) to any Person other than the
Company or a Restricted Subsidiary of the Company of (a) any Capital Stock of
any Restricted Subsidiary of the Company; or (b) any other property or assets
of the Company or any Restricted Subsidiary of the Company other than in the ordinary
course of business; provided, however, that Asset Sales shall not
include (i) a transaction or series of related transactions for which the
Company or its Restricted Subsidiaries receive aggregate consideration of less
than $10 million, (ii) sales of accounts receivable and related assets
(including contract rights) of the type specified in the definition of “Qualified
Securitization Transaction” to a Securitization Entity for the Fair Market
Value thereof, (iii) sales or grants of licenses to use the patents, trade
secrets, know-how and other intellectual property of the Company or any of its
Restricted Subsidiaries to the extent that such license does not prohibit the
Company or any of its Restricted Subsidiaries from using the technologies licensed
or require the Company or any of its Restricted Subsidiaries to pay any fees
for any such use, (iv) the sale, lease, conveyance, disposition or other
transfer (A) of all or substantially all of the assets of the Company as
permitted under Section 5.01, (B) of any Capital Stock or other ownership
interest in or assets or property of an Unrestricted Subsidiary or a Person
which is not a Subsidiary, (C) pursuant to any foreclosure of assets or other
remedy provided by applicable law to a creditor of the Company or any
Subsidiary of the Company with a Lien on such assets, which Lien is permitted
under the Indenture; provided that such foreclosure or other remedy is
conducted in a commercially reasonable manner or in accordance with any
bankruptcy law, (D) involving only Cash Equivalents, Foreign Cash Equivalents
or inventory in the ordinary course of business or obsolete or worn out
property or property that is no longer useful in the conduct of the business of
the Company or its Restricted Subsidiaries in the ordinary course of business
consistent with past practices of the Company or such Restricted Subsidiaries
or (E) including only the lease or sublease of any real or personal property in
the ordinary course of business, (v) the consummation of any transaction in
accordance with the terms of Sections 4.03 and 5.01 hereof and (vi) Permitted
Investments.

 

“Bankruptcy
Law” means Title 11, United States Code or any similar federal, state or
foreign law for the relief of debtors.

 

“Board of
Managers” means, as to any Person, the board of managers, the board of
directors or other similar body of such Person or any duly authorized committee
thereof.

 

“Board
Resolution” means, with respect to any Person, a copy of a resolution certified
by the Secretary or an Assistant Secretary of such Person to have been duly
adopted by the Board of Managers of such Person and to be in full force and
effect on the date of such certification, and delivered to the Trustee.

 

“Business Day”
means a day that is not a Saturday or Sunday or a day on which banking
institutions in New York, New York or London, U.K. are not required to be open.

 

3

 

“Capital Stock”
means (i) with respect to any Person that is a corporation, any and all shares,
interests, participations or other equivalents (however designated and whether
or not voting) of corporate stock, including each class of Common Stock and
Preferred Stock of such Person and (ii) with respect to any Person that is not
a corporation, any and all partnership, membership or other equity interests of
such Person.

 

“Capitalized
Lease Obligation” means, as to any Person, the obligations of such Person under
a lease that are required to be classified and accounted for as capital lease
obligations under GAAP and, for purposes of this definition, the amount of such
obligations at any date shall be the capitalized amount of such obligations at
such date, determined in accordance with GAAP.

 

“Cash
Equivalents” means (i) a marketable obligation, maturing within two years after
issuance thereof, issued or guaranteed by the United States of America or an
instrumentality or agency thereof, (ii) a certificate of deposit or banker’s
acceptance, maturing within one year after issuance thereof, issued by any
lender under the Credit Facilities, or a national or state bank or trust
company or a European, Canadian or Japanese bank, in each case having capital,
surplus and undivided profits of at least $100,000,000 and whose long-term
unsecured debt has a rating of “A” or better by S&P or A2 or better by
Moody’s or the equivalent rating by any other nationally recognized rating
agency (provided that the aggregate face amount of all Investments in
certificates of deposit or bankers’ acceptances issued by the principal offices
of or branches of such European or Japanese banks located outside the United
States of America shall not at any time exceed 33 1/3% of all Investments
described in this definition), (iii) open market commercial paper, maturing
within 270 days after issuance thereof, which has a rating of A1 or better by
S&P or P1 or better by Moody’s or the equivalent rating by any other
nationally recognized rating agency, (iv) repurchase agreements and reverse
repurchase agreements with a term not in excess of one year with any financial
institution which has been elected as a primary government securities dealer by
the Federal Reserve Board or whose securities are rated AA- or better by
S&P or Aa3 or better by Moody’s or the equivalent rating by any other
nationally recognized rating agency relating to marketable direct obligations
issued or unconditionally guaranteed by the United States of America or any
agency or instrumentality thereof and backed by the full faith and credit of
the United States of America, (v) “Money Market” preferred stock maturing
within six months after issuance thereof or municipal bonds issued by a
corporation organized under the laws of any state of the United States of
America, which has a rating of “A” or better by S&P or Moody’s or the equivalent
rating by any other nationally recognized rating agency, (vi) tax exempt
floating rate option tender bonds backed by letters of credit issued by a
national or state bank whose long-term unsecured debt has a rating of AA or
better by S&P or Aa2 or better by Moody’s or the equivalent rating by any
other nationally recognized rating agency, and (vii) shares of any money market
mutual fund rated at least AAA or the equivalent thereof by S&P or at least
Aaa or the equivalent thereof by Moody’s or any other mutual fund holding
assets consisting (except for de minimis amounts) of the type specified in
clauses (i) through (vi) above.

 

“Change of
Control” means (i) prior to the initial public equity offering of the Company
or any Huntsman Parent Company, the failure by Mr.  Jon M. 
Huntsman,

 

4

 

his spouse,
direct descendants, an entity controlled by any of the foregoing and/or by a
trust of the type described hereafter, and/or a trust for the benefit of any of
the foregoing (the “Huntsman Group”), collectively, to have the power, directly
or indirectly, to vote or direct the voting of securities having at least a
majority of the ordinary voting power for the election of managers (or the
equivalent) of the Company or (ii) after such initial public equity offering,
the occurrence of the following: (x) any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more
members of the Huntsman Group or GOP, is or becomes the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person
shall be deemed to have “beneficial ownership” of all securities that such
Person has the right to acquire, whether such right is exercisable immediately
or only after the passage of time), directly or indirectly, of 35% or more of
the then outstanding voting capital stock of the Company other than in a
transaction having the approval of the Board of Managers of the Company at
least a majority of which members are Continuing Managers; or (y) Continuing
Managers shall cease to constitute at least a majority of the persons
constituting the Board of Managers of the Company.

 

“Change of
Control Date” has the meaning provided in Section 4.14(c).

 

“Change of
Control Offer” has the meaning provided in Section 4.14(a).

 

“Change of
Control Payment Date” has the meaning provided in Section 4.14.

 

“Clearing
Agency” has meaning provided in Section 2.15.

 

“Clearstream”
shall mean Clearstream Banking S.A.

 

“Commission”
or “SEC” means the Securities and Exchange Commission.

 

“Commodity
Agreements” means any commodity futures contract, commodity option or other
similar agreement or arrangement entered into by the Company or any of its
Restricted Subsidiaries designed to protect the Company or any of its
Restricted Subsidiaries against fluctuations in the price of commodities
actually at that time used in the ordinary course of business of the Company or
its Restricted Subsidiaries.

 

“Common
Depositary” means Citibank, N.A., as common depositary for Euroclear and
depositary for the Euro Denominated Securities, together with its successors in
such capacity.

 

“Common Stock”
of any Person means any and all shares, interests or other participations in,
and other equivalents (however designated and whether voting or non-voting) of
such Person’s common stock, whether outstanding on the Issue Date or issued
after the Issue Date, and includes, without limitation, all series and classes
of such common stock.

 

“Company”
means the party named as such in this Indenture until a successor replaces it
pursuant to this Indenture and thereafter means such successor.

 

5

 

“Company Order”
means any written order signed in the name of the Company by two of its
Officers.

 

“Comparable
Treasury Issue” means the United States Treasury Security selected by an
Independent Investment Banker as having a maturity comparable to the remaining
term of the series of notes to be redeemed that would be utilized, at the time
of selection and in accordance with customary financial practice, in pricing
new issues of corporate debt securities of comparable maturity to the remaining
term of such notes.

 

“Comparable
Treasury Price” means, with respect to any redemption date, (1) the average of
the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) on the third Business Day
preceding such redemption date, as set forth in the daily statistical release (or
any successor release) published by the Federal Reserve Bank of New York and
designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or
(2) if such release (or any successor release) is not published or does not
contain such prices on such Business Day, (A) the Reference Treasury Dealer
Quotations for such redemption date, after excluding the highest and lowest of
such Reference Treasury Dealer Quotations, or (B) if the trustee obtains fewer
than three such Reference Treasury Dealer Quotations, the average of all such
Quotations.

 

“Consolidated
EBITDA” means, with respect to any Person, for any period, the sum (without
duplication) of (i) Consolidated Net Income and (ii) to the extent Consolidated
Net Income has been reduced thereby, (A) all income taxes of such Person and
its Restricted Subsidiaries paid or accrued in accordance with GAAP for such
period (other than income taxes attributable to extraordinary, unusual or
nonrecurring gains or losses or taxes attributable to sales or dispositions
outside the ordinary course of business) and Permitted Tax Distributions paid
during such period, (B) Consolidated Interest Expense, (C) Consolidated
Non-cash Charges less any non-cash items increasing Consolidated Net Income for
such period and (D) the amount of net loss resulting from the payment of any
premiums or similar amounts that are required to be paid under the express
terms of the instrument(s) governing any Indebtedness of the Company upon the
repayment or other extinguishment of such Indebtedness by the Company in
accordance with the express terms of such Indebtedness, all as determined on a
consolidated basis for such Person and its Restricted Subsidiaries in
accordance with GAAP.

 

“Consolidated
Fixed Charge Coverage Ratio” means, with respect to any Person, the ratio of
Consolidated EBITDA of such Person during the four full fiscal quarters for
which financial statements are available as provided pursuant to Section 4.09
(the “Four Quarter Period”) ending on or prior to the date of the transaction
giving rise to the need to calculate the Consolidated Fixed Charge Coverage
Ratio (the “Transaction Date”) to Consolidated Fixed Charges of such Person for
the Four Quarter Period.  In addition to
and without limitation of the foregoing, for purposes of this definition, “Consolidated
EBITDA” and “Consolidated Fixed Charges” shall be calculated after giving
effect on a pro forma basis for the period of such calculation to (i) the
incurrence or repayment or other reduction or discharge of any Indebtedness of
such Person or any of its Restricted Subsidiaries (and the application of the
proceeds thereof) giving rise to

 

6

 

the need to
make such calculation and any incurrence or repayment of other Indebtedness
(and the application of the proceeds thereof), other than the incurrence or
repayment of Indebtedness in the ordinary course of business for working
capital purposes pursuant to working capital facilities, occurring during the
Four Quarter Period or at any time subsequent to the last day of the Four
Quarter Period and prior to the Transaction Date, as if such incurrence or
repayment, as the case may be (and the application of the proceeds thereof),
occurred on the first day of the Four Quarter Period and (ii) any asset sales
(other than asset sales (A) in the ordinary course of business or (B) involving
a nominal amount of gross assets less than $5 million) or Asset Acquisitions
(including any Asset Acquisition giving rise to the need to make such calculation)
occurring during the Four Quarter Period or at any time subsequent to the last
day of the Four Quarter Period and on or prior to the Transaction Date, as if
such Asset Sale or Asset Acquisition (including the incurrence, assumption or
liability for any such Acquired Indebtedness) occurred on the first day of the
Four Quarter Period.  If such Person or
any of its Restricted Subsidiaries directly or indirectly guarantees
Indebtedness of a Person other than the Company or a Restricted Subsidiary, the
preceding sentence shall give effect to the incurrence of such guaranteed
Indebtedness as if such Person or any Restricted Subsidiary of such Person had
directly incurred or otherwise assumed such guaranteed Indebtedness.  Furthermore, in calculating “Consolidated
Fixed Charges” for purposes of determining the denominator (but not the
numerator) of this “Consolidated Fixed Charge Coverage Ratio,” (1) interest on
outstanding Indebtedness determined on a fluctuating basis as of the
Transaction Date and which will continue to be so determined thereafter shall
be deemed to have accrued at a fixed rate per annum equal to the rate of
interest on such Indebtedness in effect on the Transaction Date; (2) if
interest on any Indebtedness actually incurred on the Transaction Date may
optionally be determined at an interest rate based upon a factor of a prime or
similar rate, a eurocurrency interbank offered rate, or other rates, then the
interest rate in effect on the Transaction Date will be deemed to have been in
effect during the Four Quarter Period; and (3) notwithstanding clause (1)
above, interest on Indebtedness determined on a fluctuating basis, to the
extent such interest is covered by agreements relating to Interest Swap
Obligations, shall be deemed to accrue at the rate per annum resulting after
giving effect to the operation of such agreements.

 

“Consolidated
Fixed Charges” means, with respect to any Person for any period, the sum,
without duplication, of (i) Consolidated Interest Expense, plus (ii) the product
of (x) the amount of all dividend payments on any series of Preferred Stock of
such Person and its Restricted Subsidiaries (other than dividends paid in
Qualified Capital Stock and other than dividends paid to such Person or to a
Restricted Subsidiary of such Person) paid, accrued or scheduled to be paid or
accrued during such period times (y) a fraction, the numerator of which is one
and the denominator of which is one minus the then current effective
consolidated federal, state and local tax rate of such Person, expressed as a
decimal.

 

“Consolidated
Interest Expense” means, with respect to any Person for any period, the sum of,
without duplication: (i) the aggregate of the interest expense of such Person
and its Restricted Subsidiaries for such period determined on a consolidated
basis in accordance with GAAP, including without limitation, (a) any
amortization of debt discount and amortization or write-off of deferred
financing costs, (b) the net costs under

 

7

 

Interest Swap
Obligations, (c) all capitalized interest and (d) the interest portion of any
deferred payment obligation; and (ii) the interest component of Capitalized
Lease Obligations paid, accrued and/or scheduled to be paid or accrued by such
Person and its Restricted Subsidiaries during such period as determined on a
consolidated basis in accordance with GAAP.

 

“Consolidated
Net Income” means, with respect to any Person, for any period, the sum of:  (x) the aggregate net income (or loss) of
such Person and its Restricted Subsidiaries for such period on a consolidated
basis, determined in accordance with GAAP plus (y) cash dividends or
distributions paid to such Person or a Restricted Subsidiary of such Person by
any other Person (the “Payor”) other than a Restricted Subsidiary of the
referent Person, to the extent not otherwise included in Consolidated Net
Income, which have been derived from operating cash flow of the Payor; provided
that there shall be excluded therefrom (a) after-tax gains from Asset Sales or
abandonments or reserves relating thereto, (b) after-tax items classified as
extraordinary or nonrecurring gains, (c) the net income of any Person acquired
in a “pooling of interests” transaction accrued prior to the date it becomes a
Restricted Subsidiary of the Person or is merged or consolidated with the
Person or any Restricted Subsidiary of the Person, (d) the net income (but not
loss) of any Restricted Subsidiary of the Person to the extent that the
declaration of dividends or similar distributions by that Restricted Subsidiary
of that income is restricted; provided, however, that the net
income of Foreign Subsidiaries shall only be excluded in any calculation of
Consolidated Net Income of the Company as a result of application of this clause
(d) if the restriction on dividends or similar distributions results from
consensual restrictions, (e) the net income or loss of any Person, other than a
Restricted Subsidiary of the Person, except to the extent of cash dividends or
distributions paid to the Person or to a Wholly Owned Restricted Subsidiary of
the Person by such Person, (f) any restoration to income of any contingency
reserve, except to the extent that provision for such reserve was made out of
Consolidated Net Income accrued at any time following June 30, 1999, (g) income
or loss attributable to discontinued operations (including, without limitation,
operations disposed of during such period whether or not such operations were
classified as discontinued), (h) in the case of a successor to the referent
Person by consolidation or merger or as a transferee of the referent Person’s
assets, any earnings of the successor corporation prior to such consolidation,
merger or transfer of assets, (i) all gains or losses from the cumulative
effect of any change in accounting principles and (j) the net amount of all
Permitted Tax Distributions made during such period.

 

“Consolidated
Non-cash Charges” means, with respect to any Person, for any period, the
aggregate depreciation, amortization and other non-cash charges of such Person
and its Restricted Subsidiaries reducing Consolidated Net Income of such Person
and its Restricted Subsidiaries for such period, determined on a consolidated
basis in accordance with GAAP (excluding any such charges constituting an
extraordinary item or loss or any such charge which requires an accrual of or a
reserve for cash charges for any future period).

 

“Continuing
Managers” means, as of any date, the collective reference to (i) all members of
the Board of Managers of the Company who have held office

 

8

 

continuously
since a date no later than twelve months prior to the Company’s or a Huntsman
Public Parent’s initial public equity offering, and (ii) all members of the Board
of Managers of the Company who assumed office after such date and whose
appointment or nomination for election by the holders of the Company’s Capital
Stock was approved by a vote of at least 50% of the Continuing Managers in
office immediately prior to such appointment or nomination or by the Huntsman
Group.

 

“Corporate
Trust Office” means the principal office of the Trustee at which at any time
its corporate trust business shall be administered, or such other address as
the Trustee may designate from time to time by notice to the Holders and the
Company, or the principal corporate trust office of any successor Trustee (or
such other address as a successor Trustee may designate from time to time by
notice to the Holders and the Company).

 

“Covenant
Defeasance” has the meaning provided in Section 8.01.

 

“Credit
Facilities” means the senior secured Credit Agreement, dated as of July 13,
2004 among the Company and the financial institutions party thereto, together
with the related documents thereto (including, without limitation, any
guarantee agreements and security documents), in each case as such agreements
may be amended, supplemented, extended or otherwise modified from time to time,
and any one or more debt facilities, indentures or other agreements that
refinances, replaces or otherwise restructures (including increasing the amount
of available borrowings thereunder in accordance with Section 4.12 or making
Restricted Subsidiaries of the Company a borrower or guarantor thereunder) all
or any portion of the Indebtedness under such agreement or any successor or
replacement agreement and whether including any additional obligors or with the
same or any other agent, lender or group of lenders or with other financial
institutions or lenders.

 

“Currency
Agreement” means any foreign exchange contract, currency swap agreement or
other similar agreement or arrangement designed to protect the Company or any
Restricted Subsidiary of the Company against fluctuations in currency values.

 

“Custodian”
means any receiver, trustee, assignee, liquidator, sequestrator or similar
official under any Bankruptcy Law.

 

“Default”
means an event or condition the occurrence of which is, or with the lapse of
time or the giving of notice or both would be, an Event of Default.

 

“Depositary”
means DTC or the Common Depositary, as the case may be.

 

“Designated
Senior Debt” means (i) Indebtedness under or in respect of the Credit
Facilities and (ii) any other Indebtedness constituting Senior Debt which, at
the time of determination, has an aggregate principal amount of at least
$100,000,000 and is specifically designated in the instrument evidencing such
Senior Debt as “Designated Senior Debt” by the Company.

 

9

 

“Discharged”
means that the Company shall be deemed to have paid and discharged the entire
Indebtedness represented by, and obligations under, the Notes and to have
satisfied all the obligations under this Indenture relating to the Notes (and
the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same upon compliance by the Company with the provisions of
Article Eight), except (i) the rights of the Holders of Notes to receive, from
the trust fund described in Article Eight, payment of the principal of and the
interest on such Notes when such payments are due, (ii) the Company’s
obligations with respect to the Notes under Sections 2.03 through 2.07, 7.07
and 7.08 and (iii) the rights, powers, trusts, duties and immunities of the
Trustee hereunder.

 

“Disqualified
Capital Stock” means that portion of any Capital Stock which, by its terms (or
by the terms of any security into which it is convertible or for which it is
exchangeable), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is
redeemable at the sole option of the holder thereof on or prior to the final
maturity date of the Notes.

 

“Dollar” or “$”
means the lawful currency of the United States of America.

 

“Dollar Paying
Agent” means an office or agency of the Company where Dollar Notes may be
presented for payment.

 

“Dollar
Denominated Global Security” means a Global Security denominated in Dollars.

 

“Dollar
Registrar” means an office or agency of the Company where Dollar Notes may be
presented for registration of transfer or exchange.

 

“Domestic
Subsidiary” means any Subsidiary other than a Foreign Subsidiary.

 

“DTC” means
the Depository Trust Company, its nominees and successors.

 

“Equity
Offering” means any sale of Qualified Capital Stock of the Company or any
capital contribution to the equity of the Company.

 

“euro”
or “ €” means the currency introduced at the start of the third stage of
economic and monetary union pursuant to the Treaty of Rome establishing the
European Community, as amended by the Treaty on European Union, signed at
Maastricht on February 7, 1992.

 

“Euro
Denominated Global Security” means a Global Security denominated in euros.

 

“Euroclear”
means Euroclear Bank S.A./N.V., as operator of the Euroclear System.

 

10

 

“Euro
Obligations” means non-callable government obligations of any member nation of
the European Union whose official currency is the euro, rated AAA or better by
S&P and Aaa or better by Moody’s.

 

“Euro Paying
Agent” means an office or agency of the Company where Euro Notes may be
presented for payment, which shall initially be Citibank, N.A.

 

“Euro
Registrar” means an office or agency of the Company where Euro Notes may be
presented for registration of transfer or exchange, which shall initially be
Citigroup Global Markets Deutschland AG & Co. KGaA.

 

“Event of
Default” has the meaning provided in Section 6.01.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, or any successor statute
or statutes thereto.

 

“Exchange
Notes” means with respect to the Initial Notes, Notes issued in exchange for
the Initial Notes pursuant to the terms of the Registration Rights Agreement
or, with respect to any Additional Notes, Notes issued in exchange for such
Additional Notes pursuant to the terms of a registration rights agreement among
the Company, the Guarantors and the initial purchasers of such Additional
Notes.

 

“Fair Market
Value” means, with respect to any asset or property, the price which could be
negotiated in an arm’s-length, free market transaction, for cash, between a
willing seller and a willing and able buyer, neither of whom is under undue
pressure or compulsion to complete the transaction.  Fair market value (i) with respect to a
determination of value in excess of $5 million shall be determined by the Board
of Managers of the Company acting reasonably and in good faith and shall be
evidenced by a Board Resolution delivered to the Trustee or (ii) in all other
cases, by an Officers’ Certificate delivered to the Trustee.

 

“Foreign Cash
Equivalents” means (i) debt securities with a maturity of 365 days or less
issued by any member nation of the European Union, Switzerland or any other
country whose debt securities are rated by S&P and Moody’s A-1 or P-1, or
the equivalent thereof (if a short-term debt rating is provided by either) or
at least AA or AA2, or the equivalent thereof (if a long- term unsecured debt
rating is provided by either) (each such jurisdiction, an “Approved Jurisdiction”)
or any agency or instrumentality of an Approved Jurisdiction, provided
that the full faith and credit of the Approved Jurisdiction is pledged in
support of such debt securities or such debt securities constitute a general
obligation of the Approved Jurisdiction and (ii) debt securities in an
aggregate principal amount not to exceed $25 million with a maturity of 365
days or less issued by any nation in which the Company or its Restricted
Subsidiaries has cash which is the subject of restrictions on export or any
agency or instrumentality of such nation, provided that the full faith
and credit of such nation is pledged in support of such debt securities or such
debt securities constitute a general obligation of such nation.

 

“Foreign
Subsidiary” means any Subsidiary of the Company (other than a Guarantor)
organized under the laws of, and conducting a substantial portion of its

 

11

 

business in,
any jurisdiction other than the United States of America or any state thereof
or the District of Columbia.

 

“Funds” means
the aggregate amount of U.S. Legal Tender and/or U.S. Government Obligations
(in the case of Dollar Notes) and Euros and/or Euro Obligations (in the case of
the Euro Notes) deposited with the Trustee pursuant to Article Eight.

 

“GAAP” means
generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
may be approved by a significant segment of the accounting profession of the
United States of America, which were in effect as of (1) with respect to determinations
of Consolidated Net Income solely for purposes of the covenant described under
Section 4.03, June 30, 1999, and (2) for all other purposes, the Issue Date.

 

“Global
Security” means a Regulation S Global Security (or Unrestricted Global
Security) or a Restricted Global Security.

 

“GOP” means
MatlinPatterson Global Opportunities Partners L.P. and any other entity managed
by its investment advisor, MatlinPatterson Global Advisers LLC.

 

“Guarantee”
means the guarantee by a Guarantor of the obligations of the Company under the
Indenture and the Notes contemplated by Article Eleven of this Indenture.

 

“Guarantee
Obligations” has the meaning provided in Section 12.01.

 

“Guarantor”
means (i) each of the Company’s Restricted Subsidiaries that executes this Indenture
as a Guarantor and (ii) each of the Company’s Restricted Subsidiaries that in
the future executes a supplemental indenture in which such Restricted
Subsidiary agrees to be bound by the terms of this Indenture as a Guarantor; provided
that any Person constituting a Guarantor as described above shall cease to
constitute a Guarantor when its respective Guarantee is released in accordance
with the terms of this Indenture.

 

“Guarantor
Payment Blockage Period” has the meaning provided in Section 12.02(b).

 

“Guarantor
Senior Debt” means with respect to any Guarantor, (i) the principal of,
premium, if any, and interest (including any interest accruing subsequent to
the filing of a petition of bankruptcy at the rate provided for in the
documentation with respect thereto, whether or not such interest is an allowed
claim under applicable law) on any Indebtedness of a Guarantor, whether
outstanding on the Issue Date or thereafter created, incurred or assumed,
except for any such Indebtedness that is expressly subordinated or equal in
right of payment to the Guarantee of such Guarantor.  Without limiting the generality of the
foregoing, “Guarantor Senior Debt” also includes the principal of, premium, if
any, interest (including any interest accruing subsequent to the

 

12

 

filing of a
petition of bankruptcy at the rate provided for in the documentation with
respect thereto, whether or not such interest is an allowed claim under
applicable law) on, and all other amounts owing in respect of, (w) all monetary
obligations of every nature of a Guarantor in respect of the Credit Facilities,
including obligations to pay principal and interest, reimbursement obligations
under letters of credit, fees, expenses and indemnities, (x) all monetary
obligations of every nature of a Guarantor evidenced by a promissory note and
which is, directly or indirectly, pledged as security for the obligations of
the Company under the Credit Facilities, (y) all Interest Swap Obligations and
(z) all obligations under Currency Agreements, in each case whether outstanding
on the Issue Date or thereafter incurred. 
Notwithstanding the foregoing, “Guarantor Senior Debt” shall not include
(i) any Indebtedness of such Guarantor to its Restricted Subsidiaries or
Affiliates or any of such Affiliate’s Subsidiaries other than as described in
clause (x), (ii) Indebtedness to, or guaranteed on behalf of, any shareholder,
director, officer or employee of such Guarantor or any of its Restricted
Subsidiaries, (iii) Indebtedness to trade creditors and other amounts incurred
in connection with obtaining goods, materials or services, (iv) Indebtedness
represented by Disqualified Capital Stock, (v) any liability for federal,
state, local or other taxes owed or owing by such Guarantor, (vi) Indebtedness
incurred in violation of Section 4.12, (vii) Indebtedness which, when incurred
and without respect to any election under Section 1111(b) of Title 11, United
States Code, is without recourse to the Company and (viii) any Indebtedness
that is expressly subordinated in right of payment to any other Indebtedness of
such Guarantor.

 

“HI Financial”
means Huntsman International Financial LLC, a Delaware limited liability
company.

 

“Holder” or “Noteholder”
means the Person in whose name a Note is registered on the Registrar’s books.

 

“Holdings”
means Huntsman International Holdings LLC, a Delaware limited liability
company.

 

“Holdings U.K.”
means Huntsman (Holdings) UK, a private unlimited company incorporated under
the laws of England and Wales.

 

“Huntsman
Affiliate” means the Company or any of its Affiliates (other than Holdings and
its Subsidiaries).

 

“Huntsman
Parent Company” means any entity
of which the Company is a direct or indirect Wholly Owned Subsidiary.

 

“Huntsman Public Parent” means any
Huntsman Parent Company that has completed an Initial Public Equity Offering.

 

“Indebtedness”
means with respect to any Person, without duplication, (i) all Obligations of
such Person for borrowed money, (ii) all Obligations of such Person evidenced
by bonds, debentures, notes or other similar instruments, (iii) all Capitalized
Lease Obligations of such Person, (iv) all Obligations of such Person issued or
assumed as the deferred purchase price of property that is due more than six
months after taking

 

13

 

delivery of
such property, all conditional sale obligations and all Obligations under any
title retention agreement (but excluding trade accounts payable and other
accrued liabilities arising in the ordinary course of business that are not
overdue by 90 days or more or are being contested in good faith by appropriate
proceedings promptly instituted and diligently conducted), (v) all Obligations
for the reimbursement of any obligor on any letter of credit, banker’s
acceptance or similar credit transaction, (vi) guarantees in respect of
Indebtedness referred to in clauses (i) through (v) above and clause (viii)
below, (vii) all Obligations of any other Person of the type referred to in
clauses (i) through (vi) which are secured by any lien on any property or asset
of such Person, the amount of such Obligation being deemed to be the lesser of
the Fair Market Value of such property or asset or the amount of the Obligation
so secured, (viii) all Obligations under Currency Agreements and Interest Swap
Agreements of such Person and (ix) all Disqualified Capital Stock issued by
such Person with the amount of Indebtedness represented by such Disqualified
Capital Stock being equal to the greater of its voluntary or involuntary
liquidation preference and its maximum fixed repurchase price, but excluding
accrued dividends, if any.  For purposes
hereof, the “maximum fixed repurchase price” of any Disqualified Capital Stock
which does not have a fixed repurchase price shall be calculated in accordance
with the terms of such Disqualified Capital Stock as if such Disqualified
Capital Stock were purchased on any date on which Indebtedness shall be
required to be determined pursuant to this Indenture, and if such price is
based upon, or measured by, the Fair Market Value of such Disqualified Capital
Stock, such Fair Market Value shall be determined reasonably and in good faith
by the Board of Managers of the issuer of such Disqualified Capital Stock; provided,
however, that notwithstanding the foregoing, “Indebtedness” shall not
include (i) advances paid by customers in the ordinary course of business for
services or products to be provided or delivered in the future, (ii) deferred
taxes or (iii) unsecured indebtedness of the Company and/or its Restricted
Subsidiaries incurred to finance insurance premiums in a principal amount not
in excess of the insurance premiums to be paid by the Company and/or its
Restricted Subsidiaries for a three year period beginning on the date of any
incurrence of such indebtedness.

 

“Indenture”
means this Indenture, as amended or supplemented from time to time in
accordance with the terms hereof.

 

“Independent
Financial Advisor” means a firm which, in the judgment of the Board of Managers
of the Company, is independent and qualified to perform the task for which it
is to be engaged.

 

“Independent
Investment Banker” means any Reference Treasury Dealer appointed by the Trustee
after consultation with the Company.

 

“Initial
Dollar Notes” means the $175,000,000 in aggregate principal amount of 73/8% Senior Subordinated Notes due 2015 of the Company
denominated in dollars that are issued on the Issue Date.

 

14

 

“Initial Euro
Notes” means the €135,000,000 in aggregate principal amount of 71⁄2% Senior
Subordinated Notes due 2015 of the Company denominated in euros that are issued
on the Issue Date.

 

“Initial Notes”
means the Initial Dollar Notes and the Initial Euro Notes.

 

“Initial Public Equity Offering” means
a firm commitment underwritten offering of shares of Capital Stock of the
applicable Person registered on Form S-1 under the Securities Act.

 

“Initial
Purchasers” means Deutsche Bank Securities Inc., Credit Suisse First Boston LLC,
Deutsche Bank AG London and Credit Suisse First Boston (Europe) Limited.

 

“Institutional
Accredited Investor” means an accredited investor within the meaning of Rule
501(a)(1), (2), (3), or (7) under the Securities Act.

 

“Interest
Payment Date” means, with respect to each Note, the stated maturity of an
installment of interest on the Notes specified therein.

 

“Interest Swap
Obligations” means the obligations of any Person pursuant to any arrangement
with any other Person, whereby, directly or indirectly, such Person is entitled
to receive from time to time periodic payments calculated by applying either a
floating or a fixed rate of interest on a stated notional amount in exchange
for payments made by such other Person calculated by applying a fixed or a floating
rate of interest on the same notional amount and shall include, without
limitation, interest rate swaps, caps, floors, collars and similar agreements.

 

“Investment”
means, with respect to any Person, any direct or indirect loan or other
extension of credit (including, without limitation, a guarantee) or capital
contribution to (by means of any transfer of cash or other property to others
or any payment for property or services for the account or use of others), or
any purchase or acquisition by such Person of any Capital Stock, bonds, notes,
debentures or other securities or evidences of Indebtedness issued by, any
other Person.  “Investment” excludes
extensions of trade credit by the Company and its Restricted Subsidiaries on
commercially reasonable terms in accordance with normal trade practices of the
Company or such Restricted Subsidiary, as the case may be.  For the purposes of Section 4.03 hereof, (i) “Investment”
shall include and be valued at the Fair Market Value of the net assets of any
Restricted Subsidiary at the time that such Restricted Subsidiary is designated
an Unrestricted Subsidiary and shall exclude the Fair Market Value of the net
assets of any Unrestricted Subsidiary at the time that such Unrestricted
Subsidiary is designated a Restricted Subsidiary and (ii) the amount of any
Investment is the original cost of such Investment plus the cost of all
additional Investments by the Company or any of its Restricted Subsidiaries,
without any adjustments for increases or decreases in value, or write-ups,
write-downs or write-offs with respect to such Investment, reduced by the
payment of dividends or distributions in connection with such Investment or any
other amounts received in respect of such Investment; provided that no
such payment of

 

15

 

dividends or
distributions or receipt of any such other amounts shall reduce the amount of
any Investment if such payment of dividends or distributions or receipt of any
such amounts would be included in Consolidated Net Income.  If the Company or any Restricted Subsidiary
of the Company sells or otherwise disposes of any Common Stock of any direct or
indirect Restricted Subsidiary of the Company such that, after giving effect to
any such sale or disposition, the Company no longer owns, directly or
indirectly, greater than 50% of the outstanding Common Stock of such Restricted
Subsidiary, the Company shall be deemed to have made an Investment on the date
of any such sale or disposition equal to the Fair Market Value of the Common
Stock of such Restricted Subsidiary not sold or disposed of.

 

“Issue Date”
means the date on which Notes are first issued under this Indenture.

 

“Legal
Defeasance” has the meaning provided in Section 8.01.

 

“Lien” means
any lien, mortgage, deed of trust, pledge, security interest, charge or
encumbrance of any kind (including any conditional sale or other title
retention agreement, any lease in the nature thereof and any agreement to give
any security interest), but not including any interests in accounts receivable
and related assets conveyed by the Company or any of its Subsidiaries in
connection with any Qualified Securitization Transaction.

 

“Maturity Date”
means January 1, 2015.

 

“Moody’s”
means Moody’s Investor Service, Inc. and its successors.

 

“Net Cash
Proceeds” means, with respect to any Asset Sale, the proceeds in the form of
cash or Cash Equivalents including payments in respect of deferred payment
obligations when received in the form of cash or Cash Equivalents (other than
the portion of any such deferred payment constituting interest) received by the
Company or any of its Restricted Subsidiaries from such Asset Sale net of (a)
all out-of-pocket expenses and fees relating to such Asset Sale (including,
without limitation, legal, accounting and investment banking fees and sales
commissions), (b) taxes paid or payable after taking into account any reduction
in consolidated tax liability due to available tax credits or deductions and
any tax sharing arrangements, (c) repayment of Indebtedness that is required to
be repaid in connection with such Asset Sale (d) the decrease in proceeds from
Qualified Securitization Transactions which results from such Asset Sale and
(e) appropriate amounts to be provided by the Company or any Restricted
Subsidiary, as the case may be, as a reserve, in accordance with GAAP, against
any liabilities associated with such Asset Sale and retained by the Company or
any Restricted Subsidiary, as the case may be, after such Asset Sale,
including, without limitation, pension and other post-employment benefit
liabilities, liabilities related to environmental matters and liabilities under
any indemnification obligations associated with such Asset Sale.

 

“Net Proceeds
Offer” has the meaning provided in Section 4.15(c).

 

16

 

“Net Proceeds
Offer Amount” has the meaning provided in Section 4.15(c).

 

“Net Proceeds
Offer Payment Date” has the meaning provided in Section 4.15(c).

 

“Net Proceeds
Offer Trigger Date” has the meaning provided in Section 4.15(c).

 

“Noon Buying
Rate” has the meaning provided in Section 2.02.

 

“Non-payment
Default” has the meaning provided in Section 10.02(b).

 

“Non-U.S.
Person” means a person who is not a U.S. Person within the meaning assigned to
such term in Regulation S.

 

“Notes” means,
the Dollar Notes (including, without limitation, any Additional Dollar Notes),
the Euro Notes (including, without limitation, any Additional Euro Notes) and
the Exchange Notes.  The Dollar Notes
(including any Exchange Notes issued in exchange therefor) and the Euro Notes
(including any Exchange Notes issued in exchange therefor) are separate series
of Notes but shall be treated as a single class of securities under this
Indenture, except as set forth herein. 
For purposes of this Indenture, all references to Notes to be issued or
authenticated upon transfer, replacement or exchange shall be deemed to refer
to Notes of the appropriate series.

 

“Obligations”
means all obligations for principal, premium, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation governing any Indebtedness.

 

“Officer”
means, with respect to any Person, the Chairman of the Board, the Chief
Executive Officer, the President, any Vice President, the Chief Financial
Officer, the Treasurer, the Assistant Treasurer, the Financial Director, or the
Secretary or the Assistant Secretary of such Person (or, with respect to a
Person that is a limited partnership, the General Partner of such Person), or
any other officer designated by the Board of Managers serving in a similar
capacity.

 

“Officers’
Certificate” means, with respect to any Person, a certificate signed by two
Officers or by an Officer and either an Assistant Treasurer or an Assistant
Secretary of such Person and otherwise complying with the requirements of
Sections 13.04 and 13.05, as they relate to the making of an Officers’
Certificate, and delivered to the Trustee.

 

“Opinion of
Counsel” means a written opinion from legal counsel who is reasonably
acceptable to the Trustee complying with the requirements of Sections 13.04 and
13.05, as they relate to the giving of an Opinion of Counsel, and delivered to
the Trustee.  Counsel giving any Opinion
of Counsel shall be entitled to rely on an Officer’s Certificate as to any
factual matters relevant to such opinion.

 

17

 

“Pari Passu
Indebtedness” means, in the case of the Notes, any Indebtedness of the Company
that ranks equally in right of payment with the Notes and, in the case of the
Guarantees, any Indebtedness of the applicable Guarantor that ranks equally in
right of payment to the Guarantee of such Guarantor.

 

“Participants”
means (i) with respect to the Dollar Notes, institutions that have accounts
with DTC or its nominee and (ii) with respect to the Euro Notes, institutions
that have accounts with Euroclear or their respective nominees.

 

“Paying Agent”
means any Person (other than the Company and any of its Affiliates) authorized
by the Company to pay the principal of (and premium, if any) or interest on any
notes on behalf of the Company and perform all the other obligations and duties
of a “Paying Agent” described herein, including, with respect to the Euro
Notes, the Euro Paying Agent.

 

“Payment
Blockage Notice” has the meaning provided in 10.02(b).

 

“Payment
Blockage Period” has the meaning provided in Section 10.02(b).

 

“Payment
Default” has the meaning provided in Section 10.02(a).

 

“Permitted
Indebtedness” means, without duplication, each of the following:

 

(i)            Indebtedness under the
Notes, this Indenture and the Guarantees;

 

(ii)           Indebtedness incurred
pursuant to the Credit Facilities  in an
aggregate principal amount not exceeding $2.7 billion at any one time
outstanding, less the amount of any payments made by the Company under the
Credit Facilities with the Net Cash Proceeds of any Asset Sale (which are accompanied
by a corresponding permanent commitment reduction) pursuant to clause (c)
of  Section 4.15;

 

(iii)          other Indebtedness of
the Company and its Restricted Subsidiaries outstanding on the Issue Date
reduced by the amount of any prepayments with Net Cash Proceeds of any Asset
Sale (which are accompanied by a corresponding permanent commitment reduction)
pursuant to clause (c) of Section 4.15;

 

(iv)          Interest Swap
Obligations of the Company relating to Indebtedness of the Company or any of
its Restricted Subsidiaries (or Indebtedness that the Company or any of its
Restricted Subsidiaries reasonably intends to incur within six months) and
Interest Swap Obligations of any Restricted Subsidiary of the Company relating
to Indebtedness of such Restricted Subsidiary (or Indebtedness that such
Restricted Subsidiary reasonably intends to incur within six months); provided,
however, that such Interest Swap Obligations will constitute “Permitted
Indebtedness” only if they are entered into to protect the

 

18

 

Company and
its Restricted Subsidiaries from fluctuations in interest rates on Indebtedness
permitted under the Indenture to the extent the notional principal amount of
such Interest Swap Obligations, when incurred, does not exceed the principal
amount of the Indebtedness to which such Interest Swap Obligations relate;

 

(v)           Indebtedness under
Commodity Agreements and Currency Agreements; provided that in the case
of Currency Agreements which relate to Indebtedness, such Currency Agreements
do not increase the Indebtedness of the Company and its Restricted Subsidiaries
outstanding other than as a result of fluctuations in foreign currency exchange
rates or by reason of fees, indemnities and compensation payable thereunder;

 

(vi)          Indebtedness of a
Restricted Subsidiary of the Company to the Company or to a Restricted
Subsidiary of the Company for so long as such Indebtedness is held by the
Company or a Restricted Subsidiary of the Company, in each case subject to no Lien
held by a Person other than the Company or a Restricted Subsidiary of the
Company (other than the pledge of intercompany notes under the Credit
Facilities); provided that if as of any date any Person other than the
Company or a Restricted Subsidiary of the Company owns or holds any such
Indebtedness or holds a Lien in respect of such Indebtedness (other than the
pledge of intercompany notes under the Credit Facilities), such date shall be
deemed the incurrence of Indebtedness not constituting Permitted Indebtedness
by the issuer of such Indebtedness;

 

(vii)         Indebtedness of the
Company to a Restricted Subsidiary for so long as such Indebtedness is held by
a Restricted Subsidiary, in each case subject to no Lien (other than Liens
securing intercompany notes pledged under the Credit Facilities); provided
that (a) any Indebtedness of the Company to any Restricted Subsidiary (other
than pursuant to notes pledged under the Credit Facilities) is unsecured and
subordinated, pursuant to a written agreement, to the Company’s obligations
under this Indenture and the Notes and (b) if as of any date any Person other
than a Restricted Subsidiary owns or holds any such Indebtedness or any Person
holds a Lien in respect of such Indebtedness (other than pledges securing the
Credit Facilities), such date shall be deemed the incurrence of Indebtedness
not constituting Permitted Indebtedness by the Company;

 

(viii)        Indebtedness arising from
the honoring by a bank or other financial institution of a check, draft or
similar instrument inadvertently (except in the case of daylight overdrafts)
drawn against insufficient funds in the ordinary course of business; provided,
however, that such Indebtedness is extinguished within two business days
of incurrence;

 

(ix)           Indebtedness of the
Company or any of its Restricted Subsidiaries represented by letters of credit
for the account of the Company or such Restricted Subsidiary, as the case may
be, in order to provide security for

 

19

 

workers’ compensation claims, payment obligations in connection with
self-insurance or similar requirements in the ordinary course of business;

 

(x)            Refinancing
Indebtedness;

 

(xi)           Indebtedness arising
from agreements of the Company or a Subsidiary providing for indemnification,
adjustment of purchase price or similar obligations, in each case, incurred in
connection with the disposition of any business, assets or Subsidiary, other
than guarantees of Indebtedness incurred by any Person acquiring all or any
portion of such business, assets or Subsidiary for the purpose of financing
such acquisition; provided that the maximum aggregate liability in
respect of all such Indebtedness shall at no time exceed the gross proceeds
actually received by the Company and the Subsidiary in connection with such
disposition;

 

(xii)          Obligations in respect
of performance bonds and completion, guarantee, surety and similar bonds
provided by the Company or any Subsidiary in the ordinary course of business;

 

(xiii)         guarantees by the Company
or a Restricted Subsidiary of Indebtedness incurred by the Company or a
Restricted Subsidiary so long as the incurrence of such Indebtedness by the
Company or any such Restricted Subsidiary is otherwise permitted by the terms
of the Indenture;

 

(xiv)        Indebtedness of the
Company or any Subsidiary incurred in the ordinary course of business not to
exceed $50 million at any time outstanding (A) representing Capitalized Lease
Obligations or (B) constituting purchase money Indebtedness incurred to finance
property or assets of the Company or any Restricted Subsidiary of the Company
acquired in the ordinary course of business; provided, however,
that such purchase money Indebtedness shall not exceed the cost of such
property or assets and shall not be secured by any property or assets of the
Company or any Restricted Subsidiary of the Company other than the property and
assets so acquired;

 

(xv)         Indebtedness of Foreign
Subsidiaries that are Restricted Subsidiaries to the extent that the aggregate
outstanding amount of Indebtedness incurred by such Foreign Subsidiaries under
this clause (xv) does not exceed the at any one time an amount equal to the sum
of (A) 80% of the consolidated book value of the accounts receivable of all
Foreign Subsidiaries and (B) 60% of the consolidated book value of the
inventory of all Foreign Subsidiaries; provided, however, that
notwithstanding the foregoing limitation, Foreign Subsidiaries may incur in the
aggregate up to $75 million of Indebtedness outstanding at any one time;

 

(xvi)        Indebtedness of the
Company and its Domestic Subsidiaries pursuant to over draft lines or similar
extensions of credit in an aggregate amount not to exceed $20 million at any
one time outstanding and

 

20

 

Indebtedness of Foreign Subsidiaries pursuant to over draft lines or
similar extensions of credit in an aggregate principal amount not to exceed $60
million at any one time outstanding;

 

(xvii)       the incurrence by a
Securitization Entity of Indebtedness in a Qualified Securitization Transaction
that is not recourse to the Company or any Subsidiary of the Company (except
for Standard Securitization Undertakings);

 

(xviii)      so long as no Event of
Default or Potential Event of Default exists; Indebtedness of the Company to
BASF or its Affiliates in an aggregate outstanding amount not in excess of $50
million for the purpose of financing up to 50% of the cost of installation,
construction or improvement of property relating to the manufacture of PO/MTBE;

 

(xix)         Indebtedness of the
Company to a Huntsman Affiliate constituting Subordinated Indebtedness;

 

(xx)          Indebtedness consisting
of take-or-pay obligations contained in supply agreements entered into in the
ordinary course of business;

 

(xxi)         Indebtedness of the Company
to any of its Subsidiaries incurred in connection with the purchase of accounts
receivable and related assets by the Company from any such Subsidiary which
assets are subsequently conveyed by the Company to a Securitization Entity in a
Qualified Securitization Transaction;

 

(xxii)        additional Indebtedness of
the Company and its Restricted Subsidiaries in an aggregate principal amount
not to exceed $50 million at any one time outstanding.

 

(xxiii)       (A)  guarantees (“Upstream Guarantees”) issued by
the Company or any guarantor at the time that a Huntsman Public Parent
consummates its Initial Public Equity Offering or thereafter, of Indebtedness
of such Huntsman Public Parent (“Parent Debt”), provided, that:

 

1.             such
Upstream Guarantee may guarantee only Parent Debt that was incurred, and the
proceeds of which are used, to Refinance Indebtedness of the Company;

 

2.             the
aggregate amount of Parent Debt that is guaranteed by the Upstream Guarantee
shall not exceed the sum of (x) the aggregate amount of Indebtedness of the
Company that is Refinanced with the proceeds of such Parent Debt (“HI
Refinanced Debt”), and (y) the amount of any premiums required to be paid under
the terms of the instrument governing such HI Refinanced Debt and the amount of
reasonable expenses incurred by the Company, in each case in connection with
the Refinancing of such HI Refinanced Debt;

 

21

 

3.             if
the HI Refinanced Debt is subordinated in right of payment to Senior Debt, then
(x) the Upstream Guarantee, if any, issued by the Company shall be subordinated
in right of payment to Senior Debt and (y) the Upstream Guarantee, if any,
issued by any guarantor shall be subordinated in right of payment to Guarantor
Senior Debt of such guarantor, in the case of both clause (x) and (y) to at
least the same extent that such HI Refinanced Debt is subordinated to Senior
Debt;

 

4.             the
HI Refinanced Debt is not incurred in connection with or in anticipation or
contemplation of the Initial Public Equity Offering of such Huntsman Public
Parent or the Refinancing of such HI Refinanced Debt; and

 

5.             both
immediately before and after the issuance of any Upstream Guarantee there shall
be existing no Default or Event of Default.

 

For purposes
of the foregoing provisions, any Upstream Guarantee given with respect to
Parent Debt under a revolving or undrawn credit facility shall be deemed
entered into only when such Upstream Guarantee is initially entered into with
respect to the full commitment of revolving or undrawn credit facility,

 

or,

 

(B)           guarantees
by the Company or any guarantor, as the case may be (“Replacement Guarantees”),
that replace any Upstream Guarantee (a “Previous Guarantee”) that (a) was
previously issued by such person pursuant to paragraph (A) of this clause
(xxiii) or (b) was a Replacement Guarantee previously issued by such person
pursuant to this paragraph (B),

 

provided that:

 

1.             the
Replacement Guarantee may guarantee only Parent Debt (“Replacement Debt”) that
was incurred, and the proceeds of which are used, to Refinance the Parent Debt
that was guaranteed by the Previous Guarantee being so replaced (“Previous
Debt”);

 

2.             the
aggregate amount of Replacement Debt that is guaranteed by the Replacement
Guarantee shall not exceed the sum of (x) the aggregate amount of Previous Debt
guaranteed by the Previous Guarantee being so replaced, (y) the amount of any
premiums required to be paid under the terms of the instrument governing such
Previous Debt with respect to the amount of Previous Debt guaranteed by the
Previous Guarantee being so replaced, and (z) and the pro rata portion of the
amount of reasonable expenses incurred by the Huntsman Public Parent, in each
case in connection with the Refinancing of such Previous Debt;

 

3.             if
such Previous Guarantee is subordinated in right of payment to Senior Debt or
Guarantor Senior Debt, as the case may be, then (x) the Replacement Guarantee,
if any, issued by the Company shall be subordinated

 

22

 

in right of payment to Senior Debt to at least the same extent that its
Previous Guarantee is subordinated to Senior Debt and (y) the Replacement
Guarantee, if any, issued by any guarantor shall be subordinated in right of
payment to Guarantor Senior Debt of such guarantor to at least the same extent
that its Previous Guarantee is subordinated to Guarantor Senior Debt of such
guarantor;

 

4.             immediately
following the issuance of any Replacement Guarantee, the Previous Guarantee
being replaced thereby shall be automatically and unconditionally released and
rendered null and void; and

 

5.             both
immediately before and after the issuance of any Replacement Guarantee there
shall be existing no Default or Event of Default.

 

“Permitted
Investments” means (i) Investments by the Company or any Restricted Subsidiary
of the Company in any Person that is or will become immediately after such
Investment a Restricted Subsidiary of the Company or that will merge or
consolidate into the Company or a Restricted Subsidiary of the Company; provided
that this clause (i) shall not permit any Investment by the Company or a
Domestic Restricted Subsidiary in a Foreign Subsidiary consisting of a capital
contribution by means of a transfer of property other than cash, Cash
Equivalents or Foreign Cash Equivalents other than transfers of property of
nominal value in the ordinary course of business; (ii) Investments in the
Company by any Restricted Subsidiary of the Company; provided that any
Indebtedness evidencing such Investment is unsecured and subordinated (other
than pursuant to intercompany notes pledged under the Credit Facilities),
pursuant to a written agreement, to the Company’s obligations under the Notes
and this Indenture; (iii) investments in cash and Cash Equivalents; (iv) loans
and advances to employees and officers of the Company and its Restricted
Subsidiaries in the ordinary course of business for travel, relocation and
related expenses; (v) Investments in Unrestricted Subsidiaries or joint
ventures not to exceed $75 million, plus (A) the aggregate net after-tax amount
returned in cash on or with respect to any Investments made in Unrestricted
Subsidiaries and joint ventures whether through interest payments, principal
payments, dividends or other distributions or payments, (B) the net after-tax
cash proceeds received by the Company or any Restricted Subsidiary from the
disposition of all or any portion of such Investments (other than to a
Restricted Subsidiary of the Company), (C) upon redesignation of an
Unrestricted Subsidiary as a Restricted Subsidiary, the Fair Market Value of
such Subsidiary and (D) the net cash proceeds received by the Company from the
issuance of Specified Venture Capital Stock; (vi) Investments in securities
received pursuant to any plan of reorganization or similar arrangement upon the
bankruptcy or insolvency of any debtors of the Company or its Restricted
Subsidiaries; (vii) Investments made by the Company or its Restricted
Subsidiaries as a result of consideration received in connection with an Asset
Sale made in compliance with Section 4.15; (viii) Investments existing on the
Issue Date; (ix) any Investment by the Company or a Wholly Owned Subsidiary of
the Company or by Tioxide Group or Holdings U.K., in a Securitization Entity or
any Investment by a Securitization Entity in any other Person in connection
with a Qualified Securitization Transaction; provided that any
Investment in a Securitization Entity is in the form of a Purchase Money Note
or an equity interest; (x) Investments by the Company in Rubicon, Inc. and
Louisiana Pigment Company (each

 

23

 

a “Joint Venture”), so long as:
(A) such Joint Venture does not have any Indebtedness for borrowed money at any
time on or after the date of such Investment (other than Indebtedness owing to
the equity holders of such Joint Venture), (B) the documentation governing such
Joint Venture does not contain a restriction on distributions to the Company,
and (C) such Joint Venture is engaged only in the business of manufacturing
product used or marketed by the Company and its Restricted Subsidiaries and/or
the joint venture partner, and business reasonably related thereto; (xi)
Investments by Foreign Subsidiaries in Foreign Cash Equivalents; (xii) loans to
any Huntsman Parent Company for the purposes described in clause (7) of the
second paragraph of Section 4.03 which, when aggregated with the payment made
under such clause, will not exceed $3 million in any fiscal year; (xiii) any
Indebtedness of the Company to any of its Subsidiaries incurred in connection
with the purchase of accounts receivable and related assets by the Company from
any such Subsidiary which assets are subsequently conveyed by the Company to a
Securitization Entity in a Qualified Securitization Transaction; (xiv)
additional Investments in an aggregate amount not exceeding $50 million at any
one time outstanding; and (xv) the incurrence of Guarantees permitted by clause
(xxiii) of the definition of Permitted Indebtedness.

 

“Permitted
Junior Securities” means: (1) Capital Stock in the Company or any Guarantor; or
(2) debt securities of the Company or any Guarantor that (A) are subordinated
to all Senior Debt and any debt securities issued in exchange for Senior Debt
to substantially the same extent as, or to a greater extent than, the Notes and
the related Guarantees are subordinated to Senior Debt pursuant to the terms of
the Indenture and (B) have a Weighted Average Life to Maturity equal to or
greater than the Weighted Average Life to Maturity of the Notes.

 

“Permitted Tax
Distribution” for any fiscal year means any payments in compliance with clause
(6) of the second paragraph under Section 4.03.

 

“Person” means
an individual, partnership, corporation, unincorporated organization, trust or
joint venture, or a governmental agency or political subdivision thereof.

 

“Physical
Notes” shall have the meaning provided in Section 2.01(c).

 

“Preferred
Stock” of any Person means any Capital Stock of such Person that has
preferential rights to any other Capital Stock of such Person with respect to
dividends or redemptions or upon liquidation.

 

“principal” of
any Indebtedness (including the Notes) means the principal amount of such
Indebtedness plus the premium, if any, on such Indebtedness.

 

“Private
Placement Legend” means the legend initially set forth on the Notes in the form
set forth on Exhibit A-1 and Exhibit A-2.

 

“pro forma”
means, unless otherwise provided herein, with respect to any calculation made
or required to be made pursuant to the terms of this Indenture, a

 

24

 

calculation in accordance with
Article 11 of Regulation S-X promulgated under the Securities Act.

 

“Purchase
Agreement” means the Purchase Agreement, dated December 3, 2004, relating to
the issue and sale of the Initial Notes to be issued on the Issue Date.

 

“Purchase
Money Note” means a promissory note evidencing a line of credit, or evidencing
other Indebtedness owed to the Company or any Restricted Subsidiary in
connection with a Qualified Securitization Transaction, which note shall be
repaid from cash available to the maker of such note, other than amounts
required to be established as reserves, amounts paid to investors in respect of
interest, principal and other amounts owing to such investors and amounts paid
in connection with the purchase of newly generated accounts receivable.

 

“Qualified
Capital Stock” means any Capital Stock that is not Disqualified Capital Stock.

 

“Qualified
Institutional Buyer” or “QIB” has the meaning specified in Rule 144A.

 

“Qualified
Securitization Transaction” means any transaction or series of transactions
that may be entered into by the Company or any of its Subsidiaries pursuant to
which the Company or any of its Subsidiaries may sell, convey or otherwise
transfer pursuant to customary terms to (a) a Securitization Entity or to the
Company which subsequently transfers to a Securitization Entity (in the case of
a transfer by the Company or any of its Subsidiaries) and (b) any other Person
(in the case of transfer by a Securitization Entity), or may grant a security
interest in any accounts receivable (whether now existing or arising or
acquired in the future) of the Company or any of its Subsidiaries, and any
assets related thereto including, without limitation, all collateral securing
such accounts receivable, all contracts and contract rights and all guarantees
or other obligations in respect of such accounts receivable, proceeds of such
accounts receivable and other assets (including contract rights) which are customarily
transferred or in respect of which security interests are customarily granted
in connection with asset securitization transactions involving accounts
receivable.

 

Following the
Initial Public Equity Offering of a Huntsman Public Parent, references in the
foregoing definition of the “Company” shall be deemed also to refer to such
Huntsman Public Parent.

 

“Record Date”
means with respect to each Note, each applicable record date specified therein.

 

“Redemption
Date” means, with respect to any Dollar Note and/or Euro Note, as the case may
be, the Maturity Date of such Note or the earlier date on which such Note is to
be redeemed by the Company pursuant to paragraph 5 of the Dollar Notes with
respect to a Dollar Note and paragraph 5 of the Euro Notes with respect to a
Euro Note.

 

25

 

“Redemption
Price” has the meaning provided in Section 3.03.

 

“Reference
Date” has the meaning provided in Section 4.03.

 

“Reference
Treasury Dealer” means each of Goldman, Sachs & Co., Deutsche Bank
Securities Inc., Chase Securities Inc. and Warburg Dillon Read LLC and their
respective successors; provided, however, that if any of the foregoing shall
cease to be a primary U.S. Government securities dealer in New York City (a “Primary
Treasury Dealer”), the Company shall substitute therefor another Reference
Treasury Dealer.

 

“Reference
Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any redemption date, the average as determined by the trustee, of
the bid and asked prices of the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to the trustee
by such Reference Treasury Dealer at 5:00 p.m. on the third Business Day
preceding such redemption date.

 

“Refinance”
means, in respect of any security or Indebtedness, to refinance, extend, renew,
refund, repay, prepay, redeem, defease or retire, or to issue a security or
Indebtedness in exchange or replacement for, such security or Indebtedness in
whole or in part.  “Refinanced” and
“Refinancing” shall have correlative meanings.

 

“Refinancing
Indebtedness” means any Refinancing by the Company or any Restricted Subsidiary
of the Company of Indebtedness incurred in accordance with the Fixed Charge Coverage
Ratio test set forth in Section 4.12 or Indebtedness described in clauses (i),
(iii) or (x) of the definition of “Permitted Indebtedness,” in each case that
does not (1) result in an increase in the aggregate principal amount of
Indebtedness of such Person as of the date of such proposed Refinancing (plus
the amount of any premium required to be paid under the terms of the instrument
governing such Indebtedness and plus the amount of reasonable expenses incurred
by the Company in connection with such Refinancing) or (2) create Indebtedness
with (A) a Weighted Average Life to Maturity that is less than the Weighted
Average Life to Maturity of the Indebtedness being Refinanced or (B) a final
maturity earlier than the final maturity of the Indebtedness being Refinanced; provided
that (x) if such Indebtedness being Refinanced is Indebtedness solely of the
Company, then such Refinancing Indebtedness shall be Indebtedness solely of the
Company and (y) if such Indebtedness being Refinanced is subordinate or junior
to the Notes, then such Refinancing Indebtedness shall be subordinate to the
Notes at least to the same extent and in the same manner as the Indebtedness
being Refinanced.

 

“Registrar”
has the meaning provided in Section 2.03.

 

“Registration
Rights Agreement” means the Exchange and Registration Rights Agreement dated as
of the date of this Indenture among the Company, the Guarantors and the Initial
Purchasers.

 

“Regulation S”
means Regulation S under the Securities Act.

 

26

 

“Replacement
Assets” has the meaning provided in Section 4.15(c).

 

“Responsible
Officer” means, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president, assistant
vice president, assistant secretary, assistant treasurer, trust officer or any
other officer of the Trustee who customarily performs functions similar to
those performed by the Persons who at the time shall be such officers,
respectively, or to whom any corporate trust matter is referred because of such
Person’s knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of this Indenture.

 

“Regulation S
Global Dollar Denominated Global Security” means a Regulation S Global Security
denominated in Dollars.

 

“Regulation S
Global Security” has the meaning provided in Section 2.01(b)(i).

 

“Representative”
means the indenture trustee or other trustee, agent or representative in
respect of any Designated Senior Debt; provided that if, and for so long
as, any Designated Senior Debt lacks such a representative, then the
Representative for such Designated Senior Debt shall at all times constitute
the holders of a majority in outstanding principal amount of such Designated
Senior Debt in respect of any Designated Senior Debt.

 

“Restricted
Dollar Denominated Global Security” means a Restricted Global Security
representing Dollar Notes.

 

“Restricted
Euro Denominated Global Securities” means a Restricted Global Security
representing Euro Notes.

 

“Restricted
Global Security” has the meaning provided in Section 2.01(a)(i).

 

“Restricted
Payment” means to

 

1.             declare
or pay any dividend or make any distribution, other than dividends or
distributions payable in Qualified Capital Stock of the Company, on or in
respect of shares of the Company’s Capital Stock to holders of such Capital
Stock,

 

2.             purchase,
redeem or otherwise acquire or retire for value any Capital Stock of the
Company or any warrants, rights or options to purchase or acquire shares of any
class of such Capital Stock,

 

3.             make
any principal payment on, purchase, defease, redeem, prepay, decrease or
otherwise acquire or retire for value, prior to any scheduled final maturity,
scheduled repayment or scheduled sinking fund payment, any Indebtedness of the
Company that is subordinate or junior in right of payment to the notes or

 

27

 

4.             make
any Investment other than Permitted Investments.

 

“Restricted Security”
means a Note that constitutes a “restricted security” within the meaning of
Rule 144(a)(3) under the Securities Act; provided, however, that
the Trustee shall be entitled to request and conclusively rely on an Opinion of
Counsel with respect to whether any Note constitutes a Restricted Security.

 

“Restricted
Subsidiary” of any Person means any Subsidiary of such Person which at the time
of determination is not an Unrestricted Subsidiary.

 

“Sale and
Leaseback Transaction” means any direct or indirect arrangement with any Person
or to which any such Person is a party, providing for the leasing to the
Company or a Restricted Subsidiary of any property, whether owned by the
Company or any Restricted Subsidiary on the Issue Date or later acquired, which
has been or is to be sold or transferred by the Company or such Restricted
Subsidiary to such Person or to any other Person from whom funds have been or
are to be advanced by such Person on the security of such property.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder.

 

“Securitization
Entity” means a Wholly Owned Subsidiary of the Company (or Tioxide Group or
Holdings U.K. or another Person in which the Company or any Subsidiary of the
Company makes an Investment and to which the Company or any Subsidiary of the
Company transfers accounts receivable or equipment and related assets) which
engages in no activities other than in connection with the financing of
accounts receivable or equipment and which is designated by the Board of
Managers of the Company (as provided below) as a Securitization Entity (a) no
portion of the Indebtedness or any other Obligations (contingent or otherwise)
of which (i) is guaranteed by the Company or any Subsidiary of the Company
(other than the Securitization Entity)(excluding guarantees of Obligations
(other than the principal of, and interest on, Indebtedness)) pursuant to
Standard Securitization Undertakings, (ii) is recourse to or obligates the
Company or any Subsidiary of the Company (other than the Securitization Entity)
in any way other than pursuant to Standard Securitization Undertakings or (iii)
subjects any property or asset of the Company or any Subsidiary of the Company
(other than the Securitization Entity), directly or indirectly, contingently or
otherwise, to the satisfaction thereof, other than pursuant to Standard
Securitization Undertakings and other than any interest in the accounts
receivable or equipment and related assets being financed (whether in the form
of any equity interest in such assets or subordinated indebtedness payable
primarily from such financed assets) retained or acquired by the Company or any
Subsidiary of the Company, (b) with which neither the Company nor any
Subsidiary of the Company has any material contract, agreement, arrangement or
understanding other than on terms no less favorable to the Company or such
Subsidiary than those that might be obtained at the time from Persons that are
not Affiliates of the Company, other than fees payable in the ordinary course
of business in connection with servicing receivables of such entity, and (c) to
which neither the Company nor any Subsidiary of the Company has any obligation
to maintain or preserve

 

28

 

such entity’s financial
condition or cause such entity to achieve certain levels of operating
results.  Any such designation by the
Board of Managers of the Company shall be evidenced to the Trustee by filing
with the Trustee a certified copy of the Board Resolution of the Board of
Managers of the Company giving effect to such designation and an officers’
certificate certifying that such designation complied with the foregoing
conditions; provided that Huntsman Receivables Finance LLC shall be
deemed to be a Securitization Entity as of the date of this Indenture.  Following the Initial Public Equity Offering
of a Huntsman Public Parent, references in the foregoing definition to the “Company”
shall be deemed also to refer to such Huntsman Public Parent.

 

“Senior Debt”
means the principal of, premium, if any, and interest (including any interest
accruing subsequent to the filing of a petition of bankruptcy at the rate
provided for in the documentation with respect thereto, whether or not such
interest is an allowed claim under applicable law) on any Indebtedness of the
Company, whether outstanding on the Issue Date or thereafter created, incurred
or assumed, unless, in the case of any particular Indebtedness, the instrument
creating or evidencing the same or pursuant to which the same is outstanding
expressly provides that such Indebtedness shall not be senior in right of
payment to the Notes.  Without limiting
the generality of the foregoing, “Senior Debt” shall also include the principal
of, premium, if any, interest (including any interest accruing subsequent to
the filing of a petition of bankruptcy at the rate provided for in the
documentation with respect thereto, whether or not such interest is an allowed
claim under applicable law) on, and all other amounts owing in respect of, (x)
all monetary obligations of every nature of the Company under the Credit
Facilities, including obligations to pay principal and interest, reimbursement
obligations under letters of credit, fees, expenses and indemnities, (y) all
Interest Swap Obligations and (z) all Obligations under Currency Agreements and
Commodity Agreements, in each case whether outstanding on the Issue Date or
thereafter incurred.  Notwithstanding the
foregoing, “Senior Debt” shall not include (i) any Indebtedness of the Company
to a Restricted Subsidiary of the Company or any Affiliate of the Company or
any of such Affiliate’s Subsidiaries, (ii) Indebtedness to, or guaranteed on
behalf of, any shareholder, director, officer or employee of the Company or any
Subsidiary of the Company, (iii) Indebtedness to trade creditors and other
amounts incurred in connection with obtaining goods, materials or services,
(iv) Indebtedness represented by Disqualified Capital Stock, (v) any liability
for federal, state, local or other taxes owed or owing by the Company, (vi)
Indebtedness incurred in violation of the provisions set forth under Section
4.12, (vii) Indebtedness which, when incurred and without respect to any
election under Section 1111(b) of Title 11, United States Code, is without
recourse to the Company and (viii) any Indebtedness that is expressly
subordinated in right of payment to any other Indebtedness of the Company.

 

“Significant
Subsidiary” means any Restricted Subsidiary of the Company which, at the date
of determination, is a “Significant Subsidiary” as such term is defined in
Regulation S-X under the Exchange Act.

 

“Specified
Venture Capital Stock” means Qualified Capital Stock of the Company issued to a
Person who is not an Affiliate of the Company and the proceeds

 

29

 

from the issuance of which are
applied within 180 days after the issuance thereof to an Investment in an
Unrestricted Subsidiary or joint venture.

 

“S&P” means
Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. and its
successors.

 

“Standard
Securitization Undertakings” means representations, warranties, covenants and
indemnities entered into by the Company or any Subsidiary of the Company which
are reasonably customary in an accounts receivable securitization
transaction.  Following the Initial
Public Equity Offering of a Huntsman Public Parent, references in the foregoing
definition to the “Company” shall be deemed also to refer to such Huntsman
Public Parent.

 

“Subordinated
Indebtedness” means Indebtedness of the Company or any Guarantor which is
expressly subordinated in right of payment to the Notes or the Guarantee of
such Guarantor, as the case may be.

 

“Subsidiary,”
with respect to any Person, means (i) any corporation of which the outstanding
Capital Stock having at least a majority of the votes entitled to be cast in
the election of managers or directors, as applicable, under ordinary
circumstances shall at the time be owned, directly or indirectly, by such
Person or (ii) any other Person of which at least a majority of the voting
interest under ordinary circumstances is at the time, directly or indirectly,
owned by such Person.

 

“Surviving
Entity” has the meaning provided in Section 5.01(a)(i).

 

“Tax Sharing
Agreement” means the provisions contained in the Limited Liability Company
Agreements of the Company and Holdings as in existence on the Issue Date
relating to distributions to be made to the members thereof with respect to
such members’ income tax liabilities, or any amendment thereto or replacement
thereof so long as any such amendment or replacement provisions are not more
disadvantageous to the Holders of Notes in any material respect than the
provisions of the agreement being amended or replaced.

 

“TIA” means
the Trust Indenture Act of 1939 (15 U.S.C. 
§§ 77aaa-77bbbb), as amended, as in effect on the date hereof, except as
otherwise provided in Section 9.03.

 

“Trust
Officer” means any officer or assistant officer of the Trustee assigned by the
Trustee to administer its corporate trust matters or, in the case of a
successor trustee, an officer assigned to the department, division or group
performing the corporate trust work of such successor.

 

“Trustee”
means the party named as such in this Indenture until a successor replaces it
in accordance with the provisions of this Indenture and thereafter means such
successor.

 

30

 

“Unrestricted
Dollar Denominated Global Security” means an Unrestricted Global Security
denominated in Dollars.

 

“Unrestricted
Euro Denominated Global Security” means an Unrestricted Global Security
denominated in euros.

 

“Unrestricted
Global Security” means one or more securities in definitive, fully registered
form without interest coupons, with the legend provided in Exhibit B hereto,
without the Private Placements Legend.

 

“Unrestricted
Notes” means Notes are not Restricted Securities including, without limitation,
the Exchange Notes issued pursuant to a registered exchange offer in accordance
with the Registration Rights Agreement.

 

“Unrestricted
Subsidiary” of any Person means (i) any Subsidiary of such Person that at the
time of determination shall be or continue to be designated an Unrestricted
Subsidiary, and (ii) any Subsidiary of an Unrestricted Subsidiary.  Huntsman China Investments B.V. and its
Subsidiaries shall be Unrestricted Subsidiaries as of the date of this
Indenture without further action by the Company or compliance with requirements
in this Indenture applicable to such designation.  The Board of Managers of the Company may
designate any Subsidiary (including any newly acquired or newly formed
Subsidiary) to be an Unrestricted Subsidiary if such Subsidiary does not own
any Capital Stock of, or does not own or hold any Lien on any property of, the
Company or any other Subsidiary of the Company that is not a Subsidiary of the
Subsidiary to be so designated; the Company certifies to the Trustee that such
designation complies with Section 4.03 and each Subsidiary to be  designated as an Unrestricted Subsidiary and
each of its Subsidiaries has not at the time of designation, and does not
thereafter, create, incur, issue, assume, guarantee or otherwise become
directly or indirectly liable with respect to any Indebtedness under which the
lender has recourse to any of the assets of the Company or any of its
Restricted Subsidiaries.  The Board of
Managers of the Company may designate any Unrestricted Subsidiary to be a Restricted
Subsidiary only if (x) immediately after giving effect to such designation, the
Company is able to incur at least $1.00 of additional Indebtedness (other than
Permitted Indebtedness) in compliance with Section 4.12 and (y) immediately
before and immediately after giving effect to such designation, no default or
Event of Default shall have occurred and be continuing.  Any such designation by the Board of Managers
of the Company shall be evidenced to the Trustee by promptly filing with the
Trustee a copy of the Board Resolution approving the designation and an
officers’ certificate certifying that the designation complied with this
Indenture.

 

“U.S.
Government Obligations” means direct obligations (or certificates representing
an ownership interest in such obligations) of the United States of America
(including any agency or instrumentality thereof) for the payment of which the
full faith and credit of the United States of America is pledged and which are
not callable or redeemable at the issuer’s option.

 

31

 

“U.S. Legal
Tender” means such coin or currency of the United States of America as at the
time of payment shall be legal tender for the payment of public and private
debts.

 

“Weighted
Average Life to Maturity” means, when applied to any Indebtedness at any date,
the number of years obtained by dividing (a) the then outstanding aggregate
principal amount of such Indebtedness into (b) the sum of the total of the
products obtained by multiplying (i) the amount of each then remaining
installment, sinking fund, serial maturity or other required payment of
principal, including payment at final maturity, in respect thereof, by (ii) the
number of years (calculated to the nearest one-twelfth) which will elapse
between such date and the making of such payment.

 

“Wholly Owned
Subsidiary” of any Person means any Subsidiary of such Person to the extent all
of the outstanding Capital Stock or other ownership interests of which (other
than in the case of a Foreign Subsidiary, directors’ qualifying shares or an
immaterial amount of shares owned by other Persons pursuant to applicable law
are owned by such Person or any Wholly Owned Subsidiary of such Person; provided,
however, that each of Tioxide Group and Holdings U.K.  shall be deemed to Wholly Owned Subsidiaries.

 

“Wholly Owned
Restricted Subsidiary” means a Restricted Subsidiary that is a Wholly Owned
Subsidiary.

 

Section 1.02           Incorporation by Reference of TIA
..  Whenever this Indenture refers to a
provision of the TIA, that portion of such provision that is required to be
incorporated for this Indenture to be qualified under the TIA is incorporated
by reference in, and made a part of, this Indenture.  The following TIA terms used in this
Indenture have the following meanings:

 

“indenture
securities” means the Notes.

 

“indenture to
be qualified” means this Indenture.

 

“indenture
trustee” or “institutional trustee” means the Trustee.

 

“obligor” on
the indenture securities means the Company or any other obligor on the Notes.

 

All other TIA
terms used in this Indenture that are defined by the TIA, defined by the TIA by
reference to another statute or defined by SEC rule and not otherwise defined
herein have the meanings assigned to them therein. 

 

Section 1.03           Rules
of Construction.  Unless the context
otherwise requires:

 

(1)   a term has the meaning assigned
to it;

 

32

 

(2)   an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP as in effect on the Issue Date;

 

(3)   “or” is not exclusive;

 

(4)   words in the singular include the plural, and words in the
plural include the singular; and

 

(5)   “herein,” “hereof” and other words of similar import refer
to this Indenture as a whole and not to any particular Article, Section or
other subdivision.

 

ARTICLE II

 

THE NOTES

 

Section 2.01           Form and Dating.  Restricted Securities (including the Initial
Notes) and the certificate of authentication relating thereto shall be
substantially in the form of Exhibit A-1 (in the case of Dollar Notes) and A-2
(in the case of Euro Notes). 
Unrestricted Notes (including Exchange Notes issued pursuant to the
registered exchange offer in accordance with the Registration Rights Agreement)
and the certificate of authentication relating thereto shall be substantially
in the form of Exhibit A-3 (in the case of Dollar Notes) and A-4 (in the case
of Euro Notes).  The Notes may have
notations, legends or endorsements required by law, stock exchange rule or
usage.  Notes that are Restricted
Securities (including the Initial Notes) shall bear the Private Placement
Legend.  Each Note shall be dated the
date of issuance and shall show the date of its authentication.  Each Note shall have an executed Guarantee
from each of the Guarantors endorsed thereon substantially in the form of
Exhibit E hereto.

 

The terms and
provisions contained in the Notes annexed hereto as Exhibit A, shall
constitute, and are hereby expressly made, a part of this  Indenture and, to the extent applicable, the
Company, the Guarantors and the Trustee, by their execution and delivery of
this Indenture, expressly agree to such terms and provisions and to be bound
thereby.

 

(a)   Restricted Global Securities.

 

(i)            Notes that are Restricted
Securities shall be issued in the- form of one or more global securities (each,
a “Restricted Global Security”) in definitive, fully registered form without
interest coupons, with the legend provided for in Exhibit B hereto, except as
otherwise permitted herein.

 

(ii)           Each Restricted Dollar Denominated Global Security shall be
registered in the name of DTC or its nominee and deposited with the Trustee, at
its Corporate Trust Office, as custodian for DTC, duly executed by the Company
and authenticated by the Trustee as hereinafter provided.  The aggregate principal amount of a
Restricted Dollar Denominated Global Security may from time to time be
increased or decreased by adjustments made on the

 

33

 

records
of the Trustee, as custodian for DTC, in connection with a corresponding
decrease or increase in the aggregate principal amount of a Regulation S Dollar
Denominated Global Security or an Unrestricted Dollar Denominated Global
Security, as hereinafter provided.

 

(iii)          Each Restricted Euro Denominated Global Security shall be registered
in the name of the Common Depositary or its nominee and deposited with the
Common Depositary, on behalf of Euroclear, duly executed by the Company and
authenticated by the Trustee as hereinafter provided for credit to the account
of Euroclear.  The aggregate principal
amount of a Restricted Euro Denominated Global Security may from time to time
be increased or decreased by adjustments made on the records of the Common
Depositary, in connection with a corresponding decrease or increase in the aggregate
principal amount of an Unrestricted Euro Denominated Global Security, as
hereinafter provided.

 

(b)   Regulation S Global Securities.

 

(i)            Notes offered and sold in
offshore transactions in reliance on Regulation S shall be issued in the form
of one or more Restricted Global Securities (the “Regulation S Global
Security”) deposited with the custodian for the Depositary, and registered
in the name of the Depositary or its nominee for the accounts of the Euroclear
System, as operated by Euroclear Bank S.A./N.V. and Clearstream, duly executed
by the Company and authenticated by the Trustee as hereinafter provided.  During or prior to the end of the 40-day
restricted period within the meaning of Regulation S, beneficial interests
in the Regulation S Global Security may only be held through Euroclear and
Clearstream. Any resale or transfer of beneficial interests in the Regulation S
Global Security shall be made only pursuant to Rule 144A or Regulation S or
another exemption from the Registration requirements of the Securities Act,
after delivery to the Company by the transferor, if required by the Company, of
the opinions, certification or other information described in Section
2.17.  The aggregate principal amount of
the Regulation S Global Security as may from time to time be increased or
decreased by adjustments made in the records of the Trustee, as custodian for
the Depositary or its nominee, as herein provided.

 

(c)   Physical Notes.  Notes issued in
exchange for interests in a Global Note pursuant to Section 2.15 may be issued
in the form of permanent certificated Notes in registered form in substantially
the form set forth in Exhibit A-1, A-2, A-3 or A-4, as applicable (the
“Physical Notes”).

 

Section 2.02           Execution and Authentication;
Aggregate Principal Amount.  A duly
authorized Officer of the Company shall execute the Notes for the Company, and
a duly authorized officer of each Guarantor shall sign the Guarantees for the
Guarantors, in each case by manual or facsimile signature.

 

34

 

If an Officer
whose signature is on a Note or a Guarantee, as the case may be, was an Officer
at the time of such execution but no longer holds that office or position at
the time the Trustee authenticates the Note, the Note shall nevertheless be
valid.

 

A Note shall
not be valid until an authorized signatory of the Trustee manually signs the
certificate of authentication on the Note. 
The signature of such representative of the Trustee shall be conclusive
evidence that the Note has been authenticated under this Indenture.

 

On the Issue
Date, upon Company Order the Trustee shall authenticate and deliver (i) Dollar
Notes for original issue in an aggregate principal amount not to exceed
$175,000,000 and (ii) Euro Notes for original issue in an aggregate principal
amount not to exceed €135,000,000.  In
addition, at any time, from time to time, the Trustee shall authenticate and
deliver Exchange Notes in the form of Unrestricted Notes, upon a written notice
of the Company for original issuance in the aggregate principal amount
specified in such order for original issue in the aggregate principal amount, provided that Exchange Notes shall be
issuable only upon the valid surrender for cancellation of Global Securities or
other Notes of a like series and aggregate principal amount.  Additional Notes may be issued in accordance
with Sections 2.01 and 2.18.  Any such
Company Order may specify the amount and series of the Notes to be
authenticated and the date on which the original issue of Notes is to be
authenticated, whether such Notes are Unrestricted Notes and whether (subject
to Section 2.01) the Notes are to be issued as Physical Notes or Global Notes
and such other information as the Trustee may reasonably request and, in the
case of an issuance of Additional Notes pursuant to Section 2.18 after the
Issue Date, shall certify that such issuance will not be prohibited by Section
4.12.

 

Notwithstanding
the foregoing, except as provided in Section 9.02, all Notes issued under this
Indenture shall vote and consent together on all matters (as to which any of
such Notes may vote or consent) as one class and no series of Notes will have
the right to vote or consent as a separate class on any matter.  For purposes of voting (or any other matter
requiring a determination based on a percentage of principal amount of Notes
outstanding), the aggregate principal amount of outstanding Euro Notes will be
calculated using the noon buying rate in The City of New York for cable
transfers in euros as certified for customs purposes by the Federal Reserve
Bank of New York (the “Noon Buying Rate”) of $1.339 per euro on December 3,
2004.

 

The Trustee
may appoint an authenticating agent reasonably acceptable to the Company to
authenticate Notes.  Unless otherwise provided
in the appointment, an authenticating agent may authenticate Notes whenever the
Trustee may do so.  Each reference in
this Indenture to authentication by the Trustee includes authentication by such
agent.  An authenticating agent has the
same rights as an Agent to deal with the Company and Affiliates of the
Company.  The Euro Paying Agent is
initially appointed as authentication agent for the Euro Notes.

 

The Dollar
Notes shall be issuable in fully registered form only, without coupons, in
denominations of $1,000 and any integral multiple thereof. The Euro Notes

 

35

 

shall be issuable in fully
registered form only, without coupons, in denominations of €1,000 and any
integral multiple thereof.

 

Section 2.03           Registrar and Paying Agent.  The Company shall maintain an office or
agency, where (a) Notes may be presented or surrendered for registration of
transfer or for exchange (“Registrar”), (b) Notes may be presented or
surrendered for payment  and (c) notices
and demands to or upon the Company in respect of the Notes and this Indenture
may be served.  The Paying Agent shall
not be the Company or an Affiliate of the Company.  The Registrar shall keep a register of the
Notes and of their transfer and exchange. 
The Company, upon notice to the Trustee, may have one or more
co-Registrars and one or more additional paying agents reasonably acceptable to
the Trustee.  The term “Paying Agent”
includes any additional paying agent. 
The Company may change the Paying Agent or Registrar without notice to
any Holder.

 

The Company
shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture, which agreement shall incorporate the provisions of the TIA and
implement the provisions of this Indenture that relate to such Agent.  The Company shall notify the Trustee, in advance,
of the name and address of any such Agent. 
If the Company fails to maintain a Registrar or Paying Agent, or fails
to give the foregoing notice, the Trustee shall act as such.

 

The Company
initially appoints the Trustee as Registrar and Paying Agent for the Dollar
Notes, and initially appoints Citibank, N.A. as Paying Agent for the Euro Notes
and Citigroup Global Capital Markets Deutschland AG & Co. KGaA as Registrar
for the Euro Notes, in each case until such time as such entity has resigned or
a successor has been appointed.  Any of
the Registrar, the Paying Agent or any other agent may resign upon 30 days’
notice to the Company.

 

Section 2.04           Paying Agent To Hold Assets in
Trust.  The Company shall require
each Paying Agent other than the Trustee to agree in writing that each Paying
Agent shall hold in trust for the benefit of the Holders or the Trustee all
assets held by the Paying Agent for the payment of principal of, premium, if
any, or interest on, the Notes (whether such assets have been distributed to it
by the Company or any other obligor on the Notes), and shall notify the Trustee
of any default by the Company (or any other obligor on the Notes) in making any
such payment.  The Company at any time
may require a Paying Agent to distribute all assets held by it to the Trustee
and account for any assets disbursed and the Trustee may at any time during the
continuance of any payment Default, upon written request to a Paying Agent,
require such Paying Agent to distribute all assets held by it to the Trustee
and to account for any assets distributed. 
Upon distribution to the Trustee of all assets that shall have been
delivered by the Company to the Paying Agent and the completion of any
accounting required to be made hereunder, the Paying Agent shall have no
further liability for such assets.

 

Section 2.05           Holder Lists.  The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of the Holders and shall otherwise comply with TIA §312(a).  If the Trustee is not the Registrar, the
Company shall furnish to the Trustee five (5) Business Days before

 

36

 

each Interest Payment Date and
at such other times as the Trustee may request in writing a list as of the
applicable Record Date and in such form as the Trustee may reasonably require
of the names and addresses of the Holders, which list may be conclusively
relied upon by the Trustee.

 

Section 2.06           Transfer and Exchange.  Subject to Sections 2.15 and 2.16, when Notes
are presented to the Registrar or a co-Registrar with a request to register the
transfer of such Notes or to exchange such Notes for an equal principal amount
of Notes of other authorized denominations (but of the same series), the
Registrar or co-Registrar shall register the transfer or make the exchange as
requested if its requirements for such transaction are met; provided, however,
that the Notes presented or surrendered for transfer or exchange shall be duly
endorsed or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Registrar or co-Registrar, duly executed by
the Holder thereof or his attorney duly authorized in writing.  To permit registrations of transfers and
exchanges, the Company shall execute and the Trustee shall authenticate Notes
at the Registrar’s or co-Registrar’s written request.  No service charge shall be made for any
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith.  The Registrar
or co-Registrar shall not be required to register the transfer of or exchange
of any Note (i) during a period beginning at the opening of business 15 days
before the mailing of a notice of redemption pursuant to Section 3.03 and
paragraph 5 of the Notes and ending at the close of business on the day of such
mailing and (ii) selected for redemption in whole or in part pursuant to
Article Three, except the unredeemed portion of any Note being redeemed in
part.

 

Any Holder of
a beneficial interest in a Global Security shall, by acceptance of such
beneficial interest, agree that transfers of beneficial interests in such
Global Security may be effected only through a book entry system maintained by
the Holder of such Global Security (or its agent), and that ownership of a
beneficial interest in the Note shall be required to be reflected in a book
entry system.

 

Section 2.07           Replacement Notes.  If a mutilated Note is surrendered to the
Trustee or if the Holder of a Note claims that the Note has been lost,
destroyed or wrongfully taken, the Company shall issue and the Trustee shall
authenticate a replacement Note of the same series and each of the Guarantors
shall execute a Guarantee thereon if the Trustee’s requirements are met.  If required by the Trustee or the Company,
such Holder must provide an indemnity bond or other indemnity, sufficient in
the reasonable judgment of the Company, the Guarantors and the Trustee, to
protect the Company, the Guarantors, the Trustee or any Agent from any loss
which any of them may suffer if a Note is replaced.  The Company and the Trustee may charge such
Holder for their reasonable out-of-pocket expenses in replacing a Note,
including reasonable fees and expenses of counsel.  Every replacement Note shall constitute an
additional obligation of the Company and every replacement Guarantee shall
constitute an additional obligation of the Guarantors.

 

Section 2.08           Outstanding Notes.  Notes outstanding at any time are all the
Notes that have been authenticated by the Trustee except those cancelled by it
or a

 

37

 

Registrar, those delivered to
it or a Registrar for cancellation and those described in this Section as not
outstanding.  Subject to Section 2.09, a
Note does not cease to be outstanding because the Company or any of its
Affiliates holds the Note.

 

If a Note is
replaced pursuant to Section 2.07 (other than a mutilated Note surrendered for
replacement), it ceases to be outstanding unless the Trustee receives proof
satisfactory to it that the replaced Note is held by a bona fide
purchaser.  A mutilated Note ceases to be
outstanding upon surrender of such Note and replacement thereof pursuant to
Section 2.07.

 

If on a Redemption
Date or the Maturity Date the Paying Agent holds U.S. Legal Tender, U.S.
Government Obligations, or a combination thereof (in the case of Dollar Notes)
or euros, Euro Obligations, or a combination thereof (in the case of Euro
Notes) sufficient to pay all of the principal, premium, if any, and interest
due on the Notes payable on that date and is not prohibited from paying such
money to the Holders thereof pursuant to the terms of this Indenture, then on
and after that date such Notes cease to be outstanding and interest on them
ceases to accrue.

 

If on any date
which is no earlier than 60 days prior to a Redemption Date, the Company has
irrevocably deposited in trust with the Trustee U.S. Legal Tender, U.S.
Government Obligations or a combination thereof (in the case of Dollar Notes)
or euros, Euro Obligations or a combination thereof (in the case of Euro Notes)
in an amount sufficient to pay all of the principal, premium, if any, and
interest due on the Notes payable on such Redemption Date, together with
irrevocable instructions from the Company directing the Trustee to apply such
funds to the payment thereof on such Redemption Date pursuant to the terms of
this Indenture, then and after the date of such deposit such Notes shall be
deemed to be not outstanding for purposes of determining whether the Holders of
the required aggregate principal amount of Notes have concurred in any
direction, waiver, consent or notice which requires the consent of at least a
majority in aggregate principal amount of Notes then outstanding.

 

Section 2.09           Treasury Notes.  In determining whether the Holders of the
required aggregate principal amount of Notes have concurred in any direction,
waiver, consent or notice, Notes owned by the Company or an Affiliate shall be
considered as though they are not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Notes which the Trustee actually knows are
so owned shall be so considered.  The
Company shall notify the Trustee, in writing, when it or any of its Affiliates
repurchases or otherwise acquires Notes, of the aggregate principal amount of
such Notes so repurchased or otherwise acquired.

 

Section 2.10           [Intentionally Omitted].

 

Section 2.11           Cancellation.  The Company at any time may deliver Notes to
the Trustee for cancellation.  The
Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for transfer, exchange or payment.  The Trustee, or at the direction of the
Trustee, the Registrar or the Paying Agent, and no one else, shall

 

38

 

cancel and shall dispose all
cancelled Securities in accordance with its customary procedures.  Subject to Section 2.07, the Company may not
issue new Notes to replace Notes that the Company has paid or delivered to the
Trustee for cancellation.  Notes redeemed
shall be cancelled.  However, if the
Company shall acquire any of the Notes, such acquisition shall not operate as a
redemption or satisfaction of the Indebtedness represented by such Notes unless
and until the same are surrendered to the Trustee for cancellation pursuant to
this Section 2.11.

 

Section 2.12           Defaulted Interest.  The Company will pay interest on overdue
principal from time to time on demand at the rate of interest then borne by the
Dollar Notes or Euro Notes, as applicable. 
The Company shall, to the extent lawful, pay interest on overdue
installments of interest (without regard to any applicable grace periods) from
time to time on demand at the rate of interest then borne by the Dollar Notes
or Euro Notes, as applicable.  Interest
on the Notes will be computed on the basis of a 360-day year comprised of
twelve 30-day months.

 

If the Company
defaults in a payment of interest on the Notes, it shall pay the defaulted
interest, plus (to the extent lawful) any interest payable on the defaulted
interest to the Persons who are Holders on a subsequent special record date,
which date shall be the fifteenth day next preceding the date fixed by the
Company for the payment of defaulted interest or the next succeeding Business
Day if such date is not a Business Day. 
At least 15 days before the subsequent special record date, the Company
shall mail to each Holder, with a copy to the Trustee, a notice that states the
subsequent special record date, the payment date and the amount of defaulted
interest, and interest payable on such defaulted interest, if any, to be paid.

 

Notwithstanding
the foregoing, any interest which is paid prior to the expiration of the 30-day
period set forth in Section 6.01(a) shall be paid to Holders as of the regular
record date for the Interest Payment Date for which interest has not been paid.

 

Section 2.13           CUSIP Numbers.  The Company in issuing the Notes may use one
or more “CUSIP” and/or “ISIN” numbers, and if so, the Trustee shall use the
CUSIP and/or “ISIN” numbers in notices of redemption or exchange as a
convenience to Holders; provided, however, that no representation
is hereby deemed to be made by the Trustee as to the correctness or accuracy of
the CUSIP numbers printed in the notice or on the Notes, and that reliance may
be placed only on the other identification numbers printed on the Notes.  The Company shall promptly notify the Trustee
of any change in the CUSIP or “ISIN” number.

 

Section 2.14           Deposit of Moneys.  Prior to 11:00 a.m. New York City time on
each Interest Payment Date, Maturity Date, Redemption Date, Change of Control
Payment Date, and Net Proceeds Offer Payment Date, the Company shall have
deposited with the Paying Agent in immediately available funds money sufficient
to make cash payments, if any, due on such Interest Payment Date, Maturity
Date, Redemption Date, Change of Control Payment Date, and Net Proceeds Offer Payment
Date, as the case may be, in a timely manner which permits the Paying Agent to
remit payment to the Holders

 

39

 

on such Interest Payment Date,
Maturity Date, Redemption Date, Change of Control Payment Date, and Net
Proceeds Offer Payment Date, as the case may be.

 

Section 2.15           Book-Entry Provisions for Global
Securities.  Except as indicated
below in this Section 2.15, the Notes shall be represented only by Global
Securities.  The Global Securities shall
be deposited with a Depositary for such Notes or its custodian (initially, the
Trustee) (and shall be registered in the name of such Depositary or its
nominee).  The Depositary for the Dollar
Notes shall be DTC unless the Company appoints a successor Depositary by
delivery of a Company Order to the Trustee specifying such successor
Depositary.  The Depositary for the Euro
Notes shall be Citibank, N.A. unless, with the approval of Euroclear and
Clearstream, the Company appoints a successor Depositary (which shall be a
Common Depositary of Euroclear and Clearstream) by delivery of a Company Order
to the Trustee specifying such successor Depositary.

 

All payments
on a Dollar Denominated Global Security will be made to DTC or its nominee, as
the case may be, as the registered owner and Holder of such Dollar Denominated
Global Security.  All payments on a Euro
Denominated Global Security will be made to the order of the Common Depositary
or its nominee, as the case may be, as the registered holder of such Euro Denominated
Global Security.  In each case, the
Company will be fully discharged by payment to or to the order of such
Depositary from any responsibility or liability in respect of each amount so
paid.  Upon receipt of any such payment
in respect of a Dollar Denominated Global Security, DTC will credit
Participants’ accounts with payments in amounts proportionate to their
respective beneficial interests in the principal amount of such Dollar
Denominated Global Security as shown on the records of DTC.  The Common Depositary will instruct the Euro
Paying Agent to make payments in respect of the Euro Notes to Euroclear and
Clearstream in amounts proportionate to their respective beneficial interests
in the principal amount of each Euro Denominated Global Security, and Euroclear
and Clearstream will credit Participants’ accounts with payments in amounts
proportionate to their respective beneficial interests in the principal amount
of such Global Security as shown on the records of Euroclear.

 

Unless and
until it is exchanged in whole or in part for Physical Notes, in accordance
with this Section 2.15, a Global Security may not be transferred except as a
whole by the relevant Depositary or nominee thereof to another nominee of the
Depositary or to a successor of Depositary or a nominee of such successor.

 

Owners of
beneficial interests in Global Securities shall be entitled or required, as the
case may be, but only under the circumstances described in this Section 2.15,
to receive physical delivery of Physical Notes.

 

Interests in a
Global Security shall be exchangeable or transferable, as the case may be, for
Physical Notes if (i) in the case of a Dollar Denominated Global Security, DTC
notifies the Company that it is unwilling or unable to continue as Depositary
for such Dollar Denominated Global Security, or DTC ceases to be a “Clearing
Agency” registered under the United States Securities Exchange Act of 1934,

 

40

 

and a successor depositary is
not appointed by the Company, (ii) in the case of a Euro Denominated Global
Security, Euroclear and Clearstream notify the Company that they are unwilling
or unable to continue as clearing agencies for such Euro Denominated Global
Security, (iii) in the case of a Euro Denominated Global Security, the Common
Depositary notifies the Company that it is unwilling or unable to continue as
Depositary for such Euro Denominated Global Security, and a successor Common
Depositary is not appointed by the Company within one hundred twenty (120) days
or (iv) an Event of Default has occurred and is continuing with respect thereto
and the owner of a beneficial interest therein requests such exchange or
transfer.  Upon the occurrence of any of
the events described in the preceding sentence, the Company shall cause the
appropriate Physical Notes to be delivered to the owners of beneficial
interests in the Global Securities or the Participants in DTC or Euroclear and
Clearstream through which such owners hold their beneficial interest.  Physical Notes shall be exchangeable or
transferable for interests in other Physical Notes as described herein.

 

Section 2.16           Transfer and Exchange of
Securities.

 

(a)   Transfer and Exchange of Dollar Denominated Global
Securities.- Notwithstanding any provisions of this Indenture or the Notes,
transfers of a Dollar Denominated Global Security, in whole or in part,
transfers and exchanges of interests therein of the kinds described in clauses
(ii), (iii) and (iv) below and exchange of interests in Dollar Denominated Global
Securities or of other dollar denominated securities as described in clause (v)
below, shall be made only in accordance with this Section 2.16(a).  Transfers and exchanges subject to this
Section 2.16 shall also be subject to the other provisions of the Indenture
that are not inconsistent with this Section 2.16.

 

(i)            General.  A Dollar Denominated Global Security may not
be transferred, in whole or in part, to any Person other than DTC or a nominee
thereof or a successor to DTC or its nominee, and no such transfer to any such
other Person may be registered; provided that this clause (i) shall not
prohibit any transfer of a dollar denominated security that is issued in
exchange for a Dollar Denominated Global Security but is not itself a Dollar
Denominated Global Security.  No transfer
of a Dollar Note of any series to any Person shall be effective under this
Indenture or the Dollar Notes of such series unless and until such Dollar Note
has been registered in the name of such Person. 
Nothing in this Section 2.16(a)(i) shall prohibit or render ineffective
any transfer of a beneficial interest in a Dollar Denominated Global Security
effected in accordance with the other provisions of this Section 2.16(a).

 

(ii)           Restricted Global Security to
Regulation S Global Security.  If the Holder of a beneficial interest in a
Restricted Dollar Denominated Global Security of any series wishes at any time
to transfer such interest to a Person who wishes to take delivery thereof in
the form of a beneficial interest in a Regulation S Dollar Denominated Global
Security of such series, such transfer may be effected, subject to the rules
and procedures of DTC, Euroclear and Clearstream, in each case to the extent
applicable (the “Applicable Procedures”), only in accordance with the
provisions of this Section 2.16(a)(ii). 
Upon receipt by the

 

41

 

Dollar
Registrar of (A) written instructions given in accordance with the Applicable
Procedures from an Agent Member directing the Dollar Registrar, to credit or
cause to be credited to a specified Agent Member’s account a beneficial
interest in a Regulation S Dollar Denominated Global Security in a principal
amount equal to that of the beneficial interest in a Restricted Dollar
Denominated Global Security to be so transferred; (B) a written order given in
accordance with the Applicable Procedures containing information regarding the
account of the Agent Member (and/or the Euroclear or Clearstream account, as
the case may be) to be credited with, and the account of the Agent Member to be
debited for, such beneficial interest and (C) a certificate in substantially
the form set forth in Exhibit C-1 given by the Holder of such beneficial
interest, the principal amount of a Restricted Dollar Denominated Global
Security shall be reduced, and the principal amount of a Regulation S Dollar
Denominated Global Security shall be increased, by the principal amount of the
beneficial interest in a Restricted Dollar Denominated Global Security to be so
transferred, in each case by means of an appropriate adjustment on the records
of the Dollar Registrar, and the Dollar Registrar shall instruct DTC or its
authorized representative to make a corresponding adjustment to its records and
to credit or cause to be credited to the account of the Person specified in
such instructions (which shall be the Agent Member for Euroclear or Clearstream
or both, as the case may be) a beneficial interest in a Regulation S Dollar
Denominated Global Security having a principal amount equal to the amount so
transferred.

 

(iii)          Restricted Dollar Denominated
Global Security to Unrestricted Dollar Denominated Global Security.  If the Holder of a beneficial interest in a
Restricted Dollar Denominated Global Security of any series wishes at any time
to transfer such interest to a Person who wishes to take delivery thereof in
the form of a beneficial interest in an Unrestricted Dollar Denominated Global
Security of such series, such transfer may be effected, subject to the
Applicable Procedures, only in accordance with this Section 2.16(a)(iii).  Upon receipt by the Dollar Registrar, of (A)
written instructions given in accordance with the Applicable Procedures from an
Agent Member directing the Dollar Registrar to credit or cause to be credited
to a specified Agent Member’s account a beneficial interest in an Unrestricted
Dollar Denominated Global Security in a principal amount equal to that of the
beneficial interest in a Restricted Dollar Denominated Global Security to be so
transferred, (B) a written order given in accordance with the Applicable
Procedures containing information regarding the account of the Agent Member
(and, if applicable, the Euroclear or Clearstream account, as the case may be)
to be credited with, and the account of the Agent Member to be debited for,
such beneficial interest and (C) a certificate in substantially the form set
forth in Exhibit C-2 given by the Holder of such beneficial interest, the
principal amount of the Restricted Dollar Denominated Global Security shall be
reduced, and the principal amount of an Unrestricted Dollar Denominated Global
Security shall be increased, by the principal amount of the beneficial interest
in a Restricted Global Dollar Denominated Security to be so transferred, in
each case by means of an appropriate adjustment on the records of the Dollar
Registrar and the Dollar Registrar shall instruct DTC or its

 

42

 

authorized
representative to make a corresponding adjustment to its records and to credit
or cause to be credited to the account of the Person specified in such
instructions a beneficial interest in an Unrestricted Dollar Denominated Global
Security having a principal amount equal to the amount so transferred.

 

(iv)          Regulation S Dollar Denominated
Global Security or Unrestricted Dollar Denominated Global Security to
Restricted Dollar Denominated Global Security.  If the Holder of a
beneficial interest in a Regulation S Dollar Denominated Global Security of any
series or an Unrestricted Dollar Denominated Global Security of any series
wishes at any time to transfer such interest to a Person who wishes to take
delivery thereof in the form of a beneficial interest in a Restricted Dollar
Denominated Global Security of such series, such transfer may be effected,
subject to the Applicable Procedures, only in accordance with this Section
2.16(a)(iv).  Upon receipt by the Dollar
Registrar of (A) written instructions given in accordance with the Applicable
Procedures from an Agent Member directing the Dollar Registrar to credit or
cause to be credited to a specified Agent Member’s account a beneficial
interest in a Restricted Dollar Denominated Global Security in a principal
amount equal to that of the beneficial interest in a Regulation S Dollar
Denominated Global Security or an Unrestricted Dollar Denominated Global
Security to be so transferred, (B) a written order given in accordance with the
Applicable Procedures containing information regarding the account of the Agent
Member to be credited with, and the account of the Agent Member (and, if
applicable, the Euroclear or Clearstream account, as the case may be) to be
debited for, such beneficial interest and (C) with respect to a transfer of a
beneficial interest in a Regulation S Dollar Denominated Global Security (but
not an Unrestricted Dollar Denominated Global Security) to a Person whom the
transferor reasonably believes is a “qualified institutional buyer” within the
meaning of Rule 144A under the Securities Act, a certificate in substantially
the form set forth in Exhibit C-3 given by the Holder of such beneficial
interest, the principal amount of a Restricted Dollar Denominated Global
Security shall be increased, and the principal amount of a Regulation S Dollar
Denominated Global Security or an Unrestricted Dollar Denominated Global
Security shall be reduced, by the principal amount of the beneficial interest
in a Restricted Dollar Denominated Global Security to be so transferred, in
each case by means of an appropriate adjustment on the records of the Dollar
Registrar and the Dollar Registrar shall instruct DTC or its authorized
representative to make a corresponding adjustment to its records and to credit
or cause to be credited to the account of the Person specified in such instructions
a beneficial interest in the Restricted Dollar Denominated Global Security
having a principal amount equal to the amount so transferred.

 

(v)           Exchanges of Dollar Denominated
Global Security for Dollar-Denominated Non-Global Security.  In the event that a Dollar Denominated Global
Security or any portion thereof is exchanged for dollar denominated securities
other than Dollar Denominated Global Securities, such other dollar denominated
securities may in turn be exchanged (on transfer or

 

43

 

otherwise) for
Notes that are not Dollar Denominated Global Securities or for beneficial
interests in a Dollar Denominated Global Security (if any is then outstanding)
only in accordance with such procedures, which shall be substantially
consistent with the provisions of clauses (i) through (iv) above and (vi) below
(including the certification requirements intended to insure that transfers and
exchanges of beneficial interests in a Dollar Denominated Global Security comply
with Rule 144A, Rule 144 or Regulation S, as the case may be) and any
Applicable Procedures, as may be from time to time adopted by the Company and
the Trustee.

 

(vi)          Beneficial Interest in
Regulation S Dollar Denominated Global Security to be Held Through Euroclear or
Clearstream.  Until the termination of the applicable
restricted period under Regulation S with respect thereto, interests in a
Regulation S Global Security may be held only through Agent Members acting for
and on behalf of Euroclear and Clearstream, provided that this clause
(vi) shall not prohibit any transfer in accordance with Section 2.16(a)(iv)
hereof.

 

(b)   Transfer and Exchange of Euro Denominated Global Securities. Notwithstanding any provisions
of this Indenture or the Euro Notes, transfers of a Euro Denominated Global
Security, in whole or in part, shall be made only in accordance with this
Section 2.16(b).  Transfers and exchanges
subject to this Section 2.16 shall also be subject to the other provisions of
the Indenture that are not inconsistent with this Section 2.16.

 

(i)            General.  A Euro Denominated Global Security may not be
transferred, in whole or in part, to any Person other than the Common
Depositary or a nominee thereof or a successor Common Depositary or its
nominee, and no such transfer to any such other Person may be registered; provided
that this clause (i) shall not prohibit any transfer of a Euro Denominated
Security that is issued in exchange for a Euro Denominated Global Security but
is not itself a Euro Denominated Global Security.  No transfer of a Euro Denominated Security to
any Person shall be effective under this Indenture or the Euro Denominated
Securities unless and until such Euro Denominated Security has been registered
in the name of such Person.  Nothing in
this Section 2.16(b)(i) shall prohibit or render ineffective any transfer of a
beneficial interest in a Euro Denominated Global Security effected in
accordance with the other provisions of this Section 2.16(b).

 

(ii)           Restricted Euro Denominated
Global Security to Unrestricted Euro Denominated Global Security.  If the Holder of a beneficial interest in a
Restricted Euro Denominated Global Security wishes at any time to transfer such
interest to a Person who wishes to take delivery thereof in the form of a
beneficial interest in an Unrestricted Euro Denominated Global Security, such
transfer may be effected, subject to the Applicable Procedures, only in
accordance with this Section 2.16(b)(ii). 
Upon receipt by the Euro Registrar of (A) written instructions given in
accordance with the Applicable Procedures from

 

44

 

Euroclear or
Clearstream directing the Euro Registrar to credit or cause to be credited to
Euroclear or Clearstream’s account a beneficial interest in an Unrestricted
Euro Denominated Global Security in a principal amount equal to that of the
beneficial interest in a Restricted Euro Denominated Global Security to be so
transferred, (B) a written order given in accordance with the Applicable Procedures
containing information regarding the account of Euroclear or Clearstream to be
credited with, and the account of Euroclear or Clearstream to be debited for,
such beneficial interest and (C) a certificate in substantially the form set
forth in Exhibit C-2 given by the Holder of such beneficial interest, the
principal amount of the Restricted Euro Denominated Global Security shall be
reduced, and the principal amount of an Unrestricted Euro Denominated Global
Security shall be increased, by the principal amount of the beneficial interest
in a Restricted Euro Denominated Global Security to be so transferred, in each
case by means of an appropriate adjustment on the records of the Euro Registrar
and the Euro Registrar shall instruct the Common Depositary or its authorized
representative to make a corresponding adjustment to its records and to credit
or cause to be credited to the account of Euroclear a beneficial interest in a
Unrestricted Euro Denominated Global Security having a principal amount equal
to the amount so transferred.

 

(iii)          Exchanges of Euro Denominated
Global Security for Euro Denominated Non-Global Security.  In the event that a Euro Denominated Global
Security or any portion thereof is exchanged for Notes other than Euro
Denominated Global Securities, such other Notes may in turn be exchanged (on
transfer or otherwise) for Notes that are not Euro Denominated Global
Securities or for beneficial interests in a Euro Denominated Global Security
(if any is then Outstanding) only in accordance with such procedures, which
shall be substantially consistent with the provisions of clauses (i) through
(ii) above and (iv) below (including the certification requirements intended to
insure that transfers and exchanges of beneficial interests in a Euro Denominated
Global Security comply with Rule 144A, Rule 144 or Regulation S, as the case
may be) and any Applicable Procedures, as may be from time to time adopted by
the Company and the Trustee.

 

(iv)          Interest in Euro Denominated
Global Security to be Held Through Euroclear or Clearstream.  Interests in a Euro Denominated Global
Security may be held only through Agent Members acting for and on behalf of
Euroclear or Clearstream.

 

(c)   Global Securities.  The provisions of
clauses (i), (ii), (iii), and (iv) below shall apply only to Global Securities;

 

(i)            General.  Each Global Security authenticated under the
Indenture shall be registered in the name of the appropriate Depositary or a
nominee thereof and delivered to such Depositary or a nominee thereof or
custodian therefor.

 

45

 

(ii)           Transfer to Persons Other than
Depositary.  Notwithstanding any other provision in the
Indenture or the Notes, no Global Security may be exchanged in whole or in part
for Notes registered, and no transfer of a Global Security in whole or in part
may be registered, in the name of any person other than the appropriate
Depositary or a nominee thereof unless (A) in the case of a Dollar Denominated
Global Security, DTC notifies the Company that it is unwilling or unable to
continue as Depositary for such Global Security, or DTC ceases to be a Clearing
Agency registered under the United States Securities Exchange Act of 1934, and
a successor to DTC is not appointed by the Company, (B) in the case of a Euro
Denominated Global Security, Euroclear and Clearstream notify the Company that
they are unwilling or unable to continue as clearing agencies for such Euro
Denominated Global Security, and successor clearing agencies are not appointed
by the Company, (C) in the case of a Euro Denominated Global Security, the
Common Depositary notifies the Company that it is unwilling or unable to
continue as Depositary for such Euro Denominated Global Security, and a
successor Common Depositary is not appointed by the Company within one hundred
twenty (120) days or (D) in the case of any Global Security, an Event of
Default has occurred and is continuing with respect thereto and the owner of a
beneficial interest therein requests such exchange or transfer.  Any Global Security exchanged pursuant to
clause (A), (B) or (C) above shall be so exchanged in whole and not in part and
any Global Security exchanged pursuant to clause (D) above may be exchanged in
whole or from time to time in part as directed by DTC.  Any Security issued in exchange for a Global
Security or any portion thereof shall be a Global Security, provided
that any such Security so issued that is registered in the name of a Person
other than the appropriate Depositary or a nominee thereof shall not be a
Global Security.

 

(iii)          Global Security to Physical Note.  Physical Notes issued in exchange for a
Global Security or any portion thereof pursuant to clause (ii) above shall be
issued in definitive, fully registered form without interest coupons, shall be
of the same series and shall have an aggregate principal amount equal to that
of such Global Security or portion thereof to be so exchanged, shall be
registered in such names and be in such authorized denominations as the
appropriate Depositary shall designate and shall bear any legends required
hereunder.  Any Global Security to be
exchanged in whole shall be surrendered by the appropriate Depositary to the
appropriate Registrar.  With regard to
any Global Security to be exchanged in part, either such Global Security shall
be so surrendered for exchange or, in the case of a Dollar Denominated Global
Security, if the Trustee is acting as custodian for DTC or its nominee with
respect to such Global Security or, in the case of a Euro Denominated Global Security,
if the Common Depositary is acting as Depositary for Euroclear and Clearstream,
the principal amount thereof shall be reduced, by an amount equal to the
portion thereof to be so exchanged, by means of an appropriate adjustment made
on the records of the Trustee, as Authenticating Agent, or of the Common
Depositary.  Upon any such surrender or
adjustment, the Trustee shall authenticate and deliver the Security issuable on
such exchange to or upon the order of the appropriate Depositary or an
authorized representative thereof.

 

46

 

(iv)          In the event of the occurrence of any of the events
specified in clause (ii) above, the Company will promptly make available to the
Trustee a reasonable supply of Physical Notes in definitive, fully registered
form, without interest coupons.

 

(v)           No Rights of Agent Members in
Global Security.  No Agent Member of any Depositary nor any
other Persons on whose behalf Agent Members may act (including Euroclear and
Clearstream and account Holders and Participants therein) shall have any rights
under the Indenture with respect to any Global Security, or under any Global
Security, and each Depositary or its nominee, as the case may be, may be
treated by the Company, the Trustee and any agent of the Company or the Trustee
as the absolute owner and Holder of such Global Security for all purposes
whatsoever.  Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent
of the Company or the Trustee from giving effect to any written certification,
proxy or other authorization furnished by the applicable Depositary or such
nominee, as the case may be, or impair, as between DTC, Euroclear and
Clearstream, their respective Agent Members and any other person on whose
behalf an Agent Member may act, the operation of customary practices of such
Persons governing the exercise of the rights of a Holder of any Note.

 

(vi)          Notwithstanding anything to the contrary in this Indenture,
all Global Securities shall be governed by the relevant Applicable Procedures.

 

Section 2.17           Special Transfer Provisions.

 

(a)   Transfers to Institutional Accredited Investors.  If Notes are being transferred to an
Institutional Accredited Investor, the Notes shall be accompanied by delivery
of a transferee certificate for Institutional Accredited Investors
substantially in the form of Exhibit D hereto and an Opinion of Counsel
reasonably satisfactory to the Company to the effect that such transfer is in
compliance with the Securities Act.

 

(b)   Other Transfers.  If a Holder
proposes to transfer an Initial Note pursuant to any exemption from the
registration requirements of the Securities Act other than as provided for
above, the Registrar shall only register such transfer or exchange if such
transferor delivers to the Registrar and the Trustee an Opinion of Counsel
satisfactory to the Company and the Registrar that such transfer is in
compliance with the Securities Act and the terms of this Indenture; provided
that the Company may, based upon the opinion of its counsel, instruct the
Registrar by a Company Order not to register such transfer in any case where
the proposed transferee is not a QIB, an Institutional Accredited Investor or a
non-U.S. Person.

 

(c)   General.  By its acceptance of any Note bearing
legends, each- Holder of such a Note acknowledges the restrictions on transfer
of such Security set forth in this Indenture and in the legends and agrees that
it will transfer such Security only as provided in this Indenture.

 

47

 

The Registrar
shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.15, 2.16 or this Section 2.17 for a
period of two years, after which time such letters, notices and other written
communications shall at the written request of the Company be delivered to the
Company.  The Company shall have the
right to inspect and make copies of all such letters, notices or other written
communications at any reasonable time upon the giving of reasonable prior
written notice to the Registrar.

 

Section 2.18                                Issuance
of Additional Notes.

 

The Company
shall be entitled to issue Additional Notes of either series under this
Indenture which shall have substantially identical terms as the Initial Notes
of such series, other than with respect to the date of issuance, issue price,
amount of interest payable on the first Interest Payment Date applicable
thereto or upon a registration default as provided under a registration rights
agreement related thereto (and, if such Additional Notes shall be issued in the
form of Exchange Notes, other than with respect to transfer restrictions);
provided that such issuance is not prohibited by Section 4.12.

 

With respect
to any Additional Notes, the Company shall set forth in a resolution of its
Board of Managers (or a duly appointed committee thereof) and in an Officers’
Certificate, a copy of each of which shall be delivered to the Trustee, the
following information:

 

(1)                                  the series of and aggregate
principal amount of such Additional Notes to be authenticated and delivered
pursuant to this Indenture;

 

(2)                                  the issue price and the issue
date of such Additional Notes and the amount of interest payable on the first
Interest Payment Date applicable thereto; and

 

(3)                                  whether such Additional Notes shall
be Restricted Securities or Unrestricted Notes.

 

ARTICLE III

 

REDEMPTION

 

Section 3.01           Notices to Trustee.

 

If the Company
elects to redeem Dollar Notes pursuant to paragraph 5 of the Dollar Notes or
the Euro Notes pursuant to paragraph 5 of the Euro Notes it shall notify the
Trustee and the Paying Agent in writing of the Redemption Date and the
aggregate principal amount of the Notes of such series to be redeemed.  Such notice must be given at least 30 days
prior to the Redemption Date, but shall not be given more than 60 days before
such Redemption Date.  Any such notice
may be cancelled at any time prior to notice of such redemption being mailed to
any Holder and shall thereby be void and of no effect.

 

48

 

Section 3.02           Selection of Notes To Be Redeemed.

 

If less than
all of the Dollar Notes or Euro Notes, as the case may be, are to be redeemed
at any time, selection of such Notes of the appropriate series for redemption
will be made by the Trustee in compliance with the requirements of the
principal national securities exchange, if any, on which such Notes are listed
or, if such Notes are not listed on a national securities exchange, on a pro
rata basis, by lot or by such method as the Trustee shall deem fair and
appropriate; provided, however, that no Notes of a principal
amount of $1,000 or €1,000, as the case may be, or less shall be redeemed in
part.

 

Section 3.03           Notice of Redemption.

 

At least 30
days but not more than 60 days before a Redemption Date, the Company shall mail
or cause to be mailed a notice of redemption by first- class mail to each
Holder whose Notes are to be redeemed at its registered address, with a copy to
the Trustee, except that redemption notices may be mailed more than 60 days
prior to a redemption date if the notice is issued in connection with a
defeasance of the notes or a satisfaction and discharge of this Indenture, in
each case in accordance with this Indenture. 
At the Company’s request, the Trustee shall give the notice of
redemption in the Company’s name and at the Company’s expense provided, however,
that the Company shall deliver to the Trustee, at least 40 days prior to the
Redemption Date (which may be waived by the Trustee), an Officers’ Certificate
requesting that the Trustee give such notice. 
Each notice for redemption shall identify the Notes of the appropriate
series to be redeemed and shall state:

 

(1)                                  the Redemption Date;

 

(2)                                  the redemption price and the
amount of accrued interest, if any, to be paid (the “Redemption Price”);

 

(3)                                  the paragraph of the Dollar
Notes and/or the Euro Notes, as the case may be, pursuant to which the Notes of
such series are being redeemed;

 

(4)                                  the name and address of the
Paying Agent;

 

(5)                                  that Notes called for redemption
must be surrendered to the Paying Agent to collect the Redemption Price;

 

(6)                                  that, unless the Company
defaults in making the redemption payment, interest, if any, on Notes called
for redemption shall cease to accrue on and after the Redemption Date and the only
remaining right of the Holders of such Notes is to receive payment of the
Redemption Price upon surrender to the Paying Agent of the Notes redeemed;

 

(7)                                  that, if any Note is being
redeemed in part, the portion of the principal amount of such Note to be
redeemed;

 

49

 

(8)                                  that, if less than all the Notes
of a series of Notes are to be redeemed, the identification of the particular
Notes and the aggregate principal amount (or portion thereof) of such Notes to
be redeemed, to be redeemed and the aggregate principal amount of Notes to be
outstanding after such partial redemption; and

 

(9)                                  whether the redemption is
conditioned on any events and what such conditions are.

 

If one or more
conditions specified with respect to a redemption are not satisfied or waived,
the Redemption Date shall be deemed not to have occurred for all purposes of
this Indenture and the Company shall give notice of such non-occurrence to the
Holders of the applicable Notes and to the Trustee.

 

The Company
will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such rule, laws
and regulations are applicable in connection with the purchase of Notes.

 

Section 3.04           Effect of Notice of Redemption.

 

Once notice of
redemption is mailed in accordance with Section 3.03, Notes called for
redemption become due and payable on the Redemption Date and at the Redemption
Price.  Upon surrender to the Trustee or
Paying Agent, such Notes called for redemption shall be paid at the Redemption
Price, but installments of interest, the maturity of which is on or prior to
the Redemption Date, shall be payable to Holders of record at the close of
business on the relevant record dates referred to in the Notes.  Interest shall accrue on or after the
Redemption Date and shall be payable only if the Company defaults in payment of
the Redemption Price.

 

Section 3.05           Deposit of Redemption Price.

 

On or before
the Redemption Date, the Company shall deposit with the Paying Agent U.S. Legal
Tender (in the case of Dollar Notes) and/or euros (in the case of Euro Notes)
sufficient to pay the Redemption Price of all Notes of the applicable series to
be redeemed on that date.  The Paying
Agent shall promptly return to the Company any U.S. Legal Tender (in the case
of Dollar Notes) and/or euros (in the case of Euro Notes) so deposited that is
not required for that purpose, except with respect to monies owed as
obligations to the Trustee pursuant to Article Seven.

 

Unless the
Company fails to comply with the preceding paragraph and defaults in the
payment of such Redemption Price, interest on the Notes to be redeemed will
cease to accrue on and after the applicable Redemption Date, whether or not such
Notes are presented for payment.

 

50

 

Section 3.06           Notes Redeemed in Part.

 

Upon surrender
of a Note that is to be redeemed in part, the Trustee shall authenticate for
the Holder a new Note or Notes of the appropriate series equal in principal
amount to the unredeemed portion of the Note surrendered.

 

ARTICLE IV

 

COVENANTS

 

Section 4.01           Payment of Notes.

 

The Company
shall pay the interest on the Notes on the dates and in the manner provided in
the Notes.  An installment of principal
of or interest on the Notes shall be considered paid on the date it is due if
the Trustee or Paying Agent holds on that date U.S. Legal Tender (in the case
of Dollar Notes) and/or euros (in the case of Euro Notes) designated for and
sufficient to pay the installment. 
Interest on the Notes will be computed on the basis of a 360- day year
comprised of twelve 30-day months.

 

Notwithstanding
anything to the contrary contained in this Indenture, the Company may, to the
extent it is required to do so by law, deduct or withhold income or other
similar taxes imposed by the United States of America from principal, premium
or interest payments hereunder.

 

Section 4.02           Maintenance of Office or Agency.

 

The Company
shall maintain the office or agency required under Section 2.03.  The Company shall give prior notice to the
Trustee of the location, and any change in the location, of such office or
agency.  If at any time the Company shall
fail to maintain any such required office or agency or shall fail to furnish
the Trustee with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the address of the Trustee set forth in Section 13.02.

 

Section 4.03           Limitation on Restricted Payments.

 

The Company
shall not, and shall not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, make any Restricted Payment if at the time of such
Restricted Payment or immediately after giving effect thereto, (i) a Default or
an Event of Default shall have occurred and be continuing, (ii) the Company is
not able to incur at least $1.00 of additional Indebtedness other than
Permitted Indebtedness in compliance with Section 4.12, or (iii) the
aggregate amount of Restricted Payments including such proposed Restricted
Payment made after June 30, 1999, including, the Fair Market Value as
determined reasonably and in good faith by the Board of Managers of the
Company) of non-cash amounts constituting Restricted Payments shall exceed the
sum of: (x) 50% of the cumulative Consolidated Net Income (or if cumulative
Consolidated Net Income shall be a loss, minus 100% of such loss) of the
Company earned from June 30, 1999 through the last day of the last full
fiscal quarter immediately preceding the date the Restricted Payment occurs
(the “Reference Date”) (treating such period as a single

 

51

 

accounting period); plus (y) 100% of the aggregate net cash proceeds
received by the Company from any Person (other than a Subsidiary of the
Company) from the issuance and sale subsequent to June 30, 1999 and on or
prior to the Reference Date of Qualified Capital Stock of the Company (other
than Specified Venture Capital Stock) or debt securities of the Company that
are, upon issuance, convertible into or exchangeable for Qualified Capital
Stock of the Company, but only when and to the extent such debt securities are
converted into or exchanged for Qualified Capital Stock of the Company; plus
(z) without duplication of any amounts included in clause (iii)(y) above, 100%
of the aggregate net cash proceeds of any equity contribution received by the
Company from a holder of the Company’s Capital Stock.

 

Notwithstanding
the foregoing, the provisions set forth in the immediately preceding paragraph
shall not prohibit: (1) the payment of any dividend within 60 days after the
date of declaration of such dividend if the dividend would have been permitted
on the date of declaration; (2) the acquisition of any shares of Capital Stock
of the Company, either (i) solely in exchange for shares of Qualified Capital
Stock of the Company or (ii) if no Default or Event of Default shall have
occurred and be continuing, through the application of net cash proceeds of a
substantially concurrent Equity Offering (other than to a Subsidiary of the
Company); (3) the acquisition or repayment of any Indebtedness of the Company
that is subordinate or junior in right of payment to the Notes either (i)
solely in exchange for shares of Qualified Capital Stock of the Company, or
(ii) if no Default or Event of Default shall have occurred and be continuing,
through the application of net cash proceeds of (A) a substantially concurrent
Equity Offering or (B) incurrence for cash of Refinancing Indebtedness, (in the
case of (A) or (B), other than to a Subsidiary of the Company); (4) so long as
no Default or Event of Default shall have occurred and be continuing,
repurchases by the Company of, or dividends to a Huntsman Parent Company to
permit repurchases by a Huntsman Parent Company of, Common Stock of the Company
or a Huntsman Parent Company from employees of the Company or any of its
Subsidiaries or their authorized representatives upon the death, disability or
termination of employment of such employees, in an aggregate amount not to
exceed $4 million in any calendar year; (5) the redemption or repurchase of any
Common Stock of the Company held by a Restricted Subsidiary of the Company
which obtained such Common Stock directly from the Company; (6) distributions
to any Huntsman Parent Company in accordance with the Tax Sharing Agreement;
(7) payments to any Huntsman Parent Company for legal, audit and other expenses
directly relating to the administration of such Huntsman Parent Company not to
exceed $3.0 million in any fiscal year; (8) the payment of consideration by a
third party to equity holders of the Company; (9) additional Restricted
Payments in an aggregate amount not to exceed $10 million since the Issue Date;
and (10) payments of dividends on Disqualified Capital Stock issued in
accordance with Section 4.12.  In
determining the aggregate amount of Restricted Payments made subsequent to June 30,
1999 in accordance with clause (iii) of the immediately preceding paragraph,
cash amounts expended pursuant to clauses (1), (2), (3)(ii)(A) and (4) shall be
included in such calculation.

 

Not later than
the date of making any Restricted Payment pursuant to clause (iii) of the
second preceding paragraph or clause (9) of the immediately preceding
paragraph, the Company shall deliver to the Trustee an officers’ certificate
stating that

 

52

 

such Restricted Payment complies with this Indenture and setting forth
in reasonable detail the basis upon which the required calculations were
computed, which calculations may be based upon the Company’s quarterly
financial statements last provided to the Trustee pursuant to Section 4.09.

 

Section 4.04           Corporate Existence.

 

Except as
otherwise permitted by Article Five, the Company shall do or cause to be
done all things reasonably necessary to preserve and keep in full force and
effect its corporate or other existence and the corporate or other existence of
each of its Restricted Subsidiaries in accordance with the respective
organizational documents of each such Restricted Subsidiary and the material
rights (charter and statutory) and franchises of the Company and each such
Restricted Subsidiary; except for such noncompliances as are not in the
aggregate reasonably likely to have a material adverse effect on the financial
condition or results of operations of the Company and its Restricted
Subsidiaries taken as a whole.

 

Section 4.05           Payment of Taxes and Other Claims.

 

The Company
shall pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (i) all material taxes, assessments and governmental charges
(including withholding taxes and any penalties, interest and additions to
taxes) levied or imposed upon it or any of its Restricted Subsidiaries or
properties of it or any of its Restricted Subsidiaries and (ii) all material
lawful claims for labor, materials, supplies and services that, if unpaid,
might by law become a Lien upon the property of it or any of its Restricted
Subsidiaries; except for such noncompliances as are not in the aggregate
reasonably likely to have a material adverse effect on the financial condition
or results of operations of the Company and its Restricted Subsidiaries as a
whole; provided, however, that there shall not be required to be
paid or discharged any such tax, assessment or charge, the amount,
applicability or validity of which is being contested in good faith by
appropriate proceedings and for which adequate provision has been made or where
the failure to effect such payment or discharge is not adverse in any material
respect to the Holders.

 

Section 4.06           Maintenance of Properties and
Insurance.

 

(a)                                  The Company shall, and shall
cause each of its Restricted Subsidiaries to, make all reasonable efforts to
maintain its material properties in normal condition (subject to ordinary wear
and tear) and make all reasonably necessary repairs, renewals or replacements
thereto as in the judgment of the Company may be reasonably necessary to the
conduct of the business of the Company and its Restricted Subsidiaries; except
for such noncompliances as are not in the aggregate reasonably likely to have a
material adverse effect on the financial condition or results of operations of
the Company and its Restricted Subsidiaries taken as a whole.

 

(b)                                 The Company shall provide or
cause to be provided, for itself and each of its Restricted Subsidiaries,
insurance (including appropriate self- insurance) against

 

53

 

loss or damage of the
kinds that, in the reasonable, good faith opinion of the Company, are
reasonably adequate and appropriate for the conduct of the business of the
Company and such Restricted Subsidiaries.

 

Section 4.07           Compliance Certificate; Notice of
Default.

 

(a)                                  The Company shall deliver to the
Trustee, within 120 days after the end of each of the Company’s fiscal years
commencing with the fiscal year ending December 31, 2004, an Officers’
Certificate stating that a review of its activities and the activities of its
Restricted Subsidiaries during the preceding fiscal year has been made under
the supervision of the signing officers with a view to determining whether it
has kept, observed, performed and fulfilled its obligations under this
Indenture and further stating, as to each such officer signing such
certificate, that to the best of his knowledge at the date of such certificate
there is no Default or Event of Default that has occurred and is continuing or,
if such signers do know of such Default or Event of Default, the certificate
shall describe the Default or Event of Default and its status with
particularity.  The Officers’ Certificate
shall also notify the Trustee should the Company elect to change the manner in
which it fixes its fiscal year end.

 

(b)                                 The annual financial statements
delivered to the Trustee pursuant to Section 4.09 shall be accompanied by
a written report of the Company’s independent accountants that in conducting
their audit of the financial statements which are a part of such annual report
or such annual financial statements nothing has come to their attention that
would lead them to believe that the Company has violated any provisions of Article Four,
Five or Six insofar as they relate to accounting matters or, if any such
violation has occurred, specifying the nature and period of existence thereof,
it being understood that such accountants shall not be liable directly or
indirectly to any Person for any failure to obtain knowledge of any such
violation.

 

(c)                                  So long as any of the Notes are
outstanding (i) if any Default or Event of Default has occurred and is
continuing or (ii) if any Holder seeks to exercise any remedy hereunder with
respect to a claimed Default under this Indenture or the Notes, the Company
shall deliver to the Trustee as soon as practicable by registered or certified
mail or by telegram, telex or facsimile transmission followed by hard copy by
registered or certified mail an Officers’ Certificate specifying such event,
notice or other action.

 

Section 4.08           Compliance with Laws.

 

The Company
shall comply, and shall cause each of its Restricted Subsidiaries to comply,
with all applicable statutes, rules, regulations, orders and restrictions of
the United States of America, all states and municipalities thereof, and of any
governmental department, commission, board, regulatory authority, bureau,
agency and instrumentality of the foregoing, in respect of the conduct of their
respective businesses and the ownership of their respective properties, except
for such noncompliances as are not in the aggregate reasonably likely to have a
material adverse effect on the financial condition or results of operations of
the Company and its Restricted Subsidiaries taken as a whole.

 

54

 

Section 4.09           Reports to Holders.

 

Whether or not
required by the Commission, so long as any Notes are outstanding, the Company
will furnish to the Holders of the Notes and to the Trustee, within the time
periods specified in the Commission’s rules and regulations including any
extension periods available under such rules and regulations and excluding any
requirement and time periods applicable to “accelerated filers” (as defined in
Rule 12b-2 under the Exchange Act) under such rules and regulations, and make
available to securities analysts and potential investors upon request:

 

(1)                                  all quarterly and annual
financial information that would be required to be contained in a filing with
the Commission on Forms 10-Q and 10-K if the Company were required to file such
Forms, including a “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and, with respect to the annual information only, a
report on the annual financial statements by the Company’s certified
independent accountants; and

 

(2)                                  all current reports that would
be required to be filed with the Commission on Form 8-K if the Company were
required to file such reports.

 

If the Company
has designated any of its Subsidiaries as Unrestricted Subsidiaries, then the
quarterly and annual financial information required by the preceding paragraph
shall include a reasonably detailed presentation, either on the face of the
financial statements or in the footnotes or schedules thereto and in Management’s
Discussion and Analysis of Financial Condition and Results of Operations, of
the financial condition and results of operations of the Company and its
Restricted Subsidiaries separate from the financial condition and results of
operations of the Unrestricted Subsidiaries of the Company.

 

Section 4.10           Waiver of Stay, Extension or Usury
Laws.

 

The Company
covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, plead, or in any manner whatsoever claim or take the benefit
or advantage of, any stay or extension law or any usury law or other law that
would prohibit or forgive the Company from paying all or any portion of the
principal of, premium or interest on the Notes as contemplated herein, wherever
enacted, now or at any time hereafter in force, or which may affect the
obligations or the performance of this Indenture; and (to the extent that it
may lawfully do so) the Company hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had
been enacted.

 

Section 4.11           Limitations on Transactions with
Affiliates.

 

(a)                                  The Company will not, and will
not permit any of its Restricted Subsidiaries to, directly or indirectly, enter
into or permit to exist any transaction or series of related transactions with,
or for the benefit of, any of its Affiliates (each an “Affiliate Transaction”),
other than (x) Affiliate Transactions permitted under paragraph (b) below

 

55

 

and (y) Affiliate
Transactions on terms that are no less favorable to the Company or the relevant
Restricted Subsidiary than those terms that might reasonably have been obtained
in a comparable transaction at such time on an arm’s-length basis by the
Company or the relevant Restricted Subsidiary and an unrelated Person.  The Board of Managers of the Company and the
Board of Managers of the relevant Restricted Subsidiary must approve each Affiliate
Transaction to which they are a party that involves aggregate payments or other
property with a Fair Market Value in excess of $5.0 million.  This approval must be evidenced by a Board
Resolution that states that the applicable Board of Managers has determined
that the transaction complies with the foregoing provisions.  If the Company or any Restricted Subsidiary
of the Company enters into an Affiliate Transaction that involves an aggregate
Fair Market Value of more than $10.0 million, then prior to the consummation of
the Affiliate Transaction, the parties to such Affiliate Transaction must
obtain a favorable opinion as to the fairness of such transaction or series of
related transactions to the Company or the relevant Restricted Subsidiary, as
the case may be, from a financial point of view, from an Independent Financial
Advisor and file the same with the Trustee.

 

(b)                                 The restrictions set forth in
clause (a) shall not apply to (i) reasonable fees and compensation paid to and
indemnity provided on behalf of, officers, directors, manager, employees or
consultants of the Company or any Restricted Subsidiary of the Company as
determined in good faith by the Company’s Board of Managers or senior
management; (ii) transactions exclusively between or among the Company and any
of its Restricted Subsidiaries or exclusively between or among such Restricted
Subsidiaries, provided such transactions are not otherwise prohibited by this
Indenture; (iii) any agreement as in effect as of the Issue Date or any
amendment thereto or any transaction contemplated thereby or in any replacement
agreement thereto so long as any such amendment or replacement agreement is not
more disadvantageous to the Holders in any material respect than the original
agreement; (iv) Permitted Investments and Restricted Payments made in
compliance with Section 4.03; (v) transactions between or among any of the
Company, any of its Subsidiaries and any Securitization Entity in connection
with a Qualified Securitization Transaction, in each case provided that
such transactions are not otherwise prohibited by this Indenture; (vi)
transactions with distributors or other purchases or sales of goods or
services, in each case in the ordinary course of business and otherwise in
compliance with the terms of this Indenture which when taken together are fair
to the Company or the Restricted Subsidiaries as applicable, in the reasonable
determination of the Board of Managers of the Company or the senior management
thereof, or are on terms at least as favorable as might reasonably have been
obtained at such time from an unaffiliated party and (vii) Guarantees by the
Company or a Guarantor incurred in accordance with clause (xxiii) of the
definition of Permitted Indebtedness.

 

Section 4.12           Limitation on Incurrence of
Additional Indebtedness.

 

The Company
will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, create, incur, assume, guarantee, acquire, become liable,
contingently or otherwise, with respect to, or otherwise become responsible for
payment of (collectively, “incur”) any Indebtedness (other than Permitted
Indebtedness); provided, however, if no Default or Event of
Default shall have occurred and be

 

56

 

continuing at the time of or as a consequence of the incurrence of any
such Indebtedness, the Company and its Restricted Subsidiaries which are
Guarantors may incur Indebtedness (including, Acquired Indebtedness) and
Restricted Subsidiaries which are not Guarantors may incur Acquired
Indebtedness, in each case if on the date of the incurrence of such
Indebtedness, after giving effect to the incurrence thereof, the Consolidated
Fixed Charge Coverage Ratio of the Company is greater than 2.0 to 1.0.

 

Section 4.13           Limitation on Dividend and Other
Payment Restrictions Affecting Subsidiaries.

 

The Company
will not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, create or otherwise cause or permit to exist or become
effective any encumbrance or restriction on the ability of any Restricted
Subsidiary of the Company to (a) pay dividends or make any other distributions
on or in respect of its Capital Stock; (b) make loans or advances or to pay any
Indebtedness or other obligation owed to the Company or any other Restricted
Subsidiary of the Company; or (c) transfer any of its property or assets to the
Company or any other Restricted Subsidiary of the Company, except for such
encumbrances or restrictions existing under or by reason of: (1) applicable
law, rules, regulations and/or orders; (2)  this Indenture (including,
without limitation, any Liens permitted hereunder); (3) customary
non-assignment provisions of any contract or any lease governing a leasehold
interest of the Company or any Restricted Subsidiary of the Company; (4) any
agreements existing at the time of any merger or consolidation with any Person,
acquisition of any Person or the properties or assets of such Person (including
agreements governing Acquired Indebtedness), which encumbrance or restriction
is not applicable to any Person, or the properties or assets of any Person,
other than the Person or the properties or assets of the Person merged or
consolidated with or so acquired or any Subsidiary of such Person; (5)
agreements existing on the Issue Date to the extent and in the manner such
agreements are in effect on such date and any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or
refinancings thereof, provided that such amendments, modifications,
restatements, increases, supplements, refundings, replacements or refinancings
are no more restrictive (as determined by the Board of Managers of the Company
in their reasonable and good faith judgment) in any material respect, taken as
a whole, with respect to such dividend and other payment restrictions than
those contained in such agreements or instruments as in effect on the Issue
Date; (6) restrictions imposed by any agreement to sell assets or Capital Stock
permitted under this Indenture to any Person pending the closing of such sale;
(7) any agreement or instrument governing Capital Stock of any Person that is
acquired; (8) Indebtedness or other contractual requirements of a
Securitization Entity in connection with a Qualified Securitization
Transaction; provided that such restrictions apply only to such
Securitization Entity; (9) Liens incurred in accordance with the covenant
described under Section 4.18; (10) restrictions on cash or other deposits
or net worth imposed by customers under contracts entered into in the ordinary
course of business; (11) the Credit Facilities; (12) any restriction under an
agreement governing Indebtedness of a Foreign Subsidiary permitted under Section 4.12;
(13) customary restrictions in Capitalized Lease Obligations, security
agreements or mortgages securing Indebtedness of the Company or a Restricted
Subsidiary to the extent such restrictions

 

57

 

restrict the transfer of the property subject to such Capitalized Lease
Obligations, security agreements or mortgages; (14) customary provisions in
joint venture agreements and other similar agreements (in each case relating
solely to the respective joint venture or similar entity or the equity
interests therein) entered into in the ordinary course of business; (15)
contracts entered into in the ordinary course of business, not relating to
Indebtedness, and that do not, individually or in the aggregate, detract from
the value of property or assets of the Company or any Restricted Subsidiary in
any manner material to the Company or any Restricted Subsidiary; and (16) an
agreement governing Indebtedness incurred to Refinance the Indebtedness issued,
assumed or incurred pursuant to an agreement referred to in clause (2), (4),
(5), (8), (11), (12) or (13) above; provided, however, that the
provisions relating to such encumbrance or restriction contained in any such
Indebtedness are no less favorable to the Company in any material respect as
determined by the Board of Managers of the Company in their reasonable and good
faith judgment than the provisions relating to such encumbrance or restriction
contained in agreements referred to in such clause (2), (4), (5), (8), (11),
(12) or (13).

 

Section 4.14           Change of Control.

 

(a)                                  Upon the occurrence of a Change
of Control, each Holder will have the right to require that the Company
purchase all or a portion (equal to $1,000 or €1,000, as the case may be, or an
integral multiple thereof) of such Holder’s Notes in cash pursuant to the offer
described below (the “Change of Control Offer”), at a purchase price equal to
101% of the principal amount thereof plus accrued and unpaid interest, if any,
to the date of purchase.

 

(b)                                 Prior to the mailing of the
notice referred to below, but in any event within 30 days following any Change
of Control, the Company covenants to (i) repay in full and terminate all
commitments under Indebtedness under the Credit Facilities and all other Senior
Debt the terms of which require repayment upon a Change of Control or offer to
repay in full and terminate all commitments under all Indebtedness under the
Credit Facilities and all other such Senior Debt and to repay the Indebtedness
owed to each lender which has accepted such offer or (ii) obtain the requisite
consents under the Credit Facilities and all other Senior Debt to permit the
repurchase of the Notes as provided below. 
The Company shall first comply with the covenant in the immediately
preceding sentence before it shall be required to repurchase Notes pursuant to
the provisions described below.  The
Company’s failure to comply with the covenant described in the immediately
preceding sentence shall be governed by clause (3), and not clause (2), of Section 6.01.

 

(c)                                  Within 30 days following the
date on which a Change of Control occurs (the “Change of Control Date”), the
Company shall send, by first class mail, postage prepaid, a notice to each
Holder of Notes at their last registered address and the Trustee, which notice
shall govern the terms of the Change of Control Offer.  The notice to the Holders shall contain all
instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Change of Control Offer. 
Such notice shall state:

 

58

 

(1)                                  that the Change of Control Offer
is being made pursuant to Section 4.14 of the Indenture and that all Notes
validly tendered and not withdrawn will be accepted for payment;

 

(2)                                  the purchase price (including
the amount of accrued interest, if any) and the purchase date (which shall be
no earlier than 30 days nor later than 60 days from the date such notice is
mailed, other than as may be required by law) (the “Change of Control Payment
Date”);

 

(3)                                  that any Note not tendered will
continue to accrue interest;

 

(4)                                  that, unless the Company
defaults in making payment therefor, any Note accepted for payment pursuant to
the Change of Control Offer shall cease to accrue interest after the Change of
Control Payment Date;

 

(5)                                  that Holders electing to have a
Note purchased pursuant to a Change of Control Offer will be required to
surrender the Note, with the form entitled “Option of Holder to Elect Purchase”
on the reverse of the Note completed, to the Paying Agent and Registrar for the
Notes at the address specified in the notice prior to the close of business on
the third Business Day prior to the Change of Control Payment Date;

 

(6)                                  that Holders will be entitled to
withdraw their election if the Paying Agent receives, not later than the second
Business Day prior to the Change of Control Payment Date, a telegram, telex,
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Notes the Holder delivered for purchase and a statement
that such Holder is withdrawing his election to have such Note purchased;

 

(7)                                  that Holders whose Notes are
purchased only in part will be issued new Notes of an appropriate series in a
principal amount equal to the unpurchased portion of the Notes surrendered; provided,
however, that each Note purchased and each new Note issued shall be in a
principal amount of $1,000 or €1,000 or integral multiples thereof; and

 

(8)                                  the circumstances and relevant
facts regarding such Change of Control.

 

(d)                                 On or before the Change of
Control Payment Date, the Company shall (i) accept for payment Notes or
portions thereof (in integral multiples of $1,000 and €1,000) validly tendered
pursuant to the Change of Control Offer, (ii) deposit with the Paying Agent in
accordance with Section 2.14 U.S. Legal Tender and/or euros sufficient to
pay the purchase price plus accrued and unpaid interest, if any, of all Notes
to be purchased and (iii) deliver to the Trustee Notes so accepted together
with an Officers’ Certificate stating the Notes or portions thereof being
purchased by the Company.  Upon receipt
by the Paying Agent of the monies specified in clause (ii) above and a copy of
the Officers’ Certificate specified in clause (iii) above, the Paying Agent
shall promptly mail to the Holders of Notes so accepted payment in an amount
equal to the purchase price

 

59

 

plus accrued and
unpaid interest, if any, out of the funds deposited with the Paying Agent in
accordance with the preceding sentence. 
The Trustee shall promptly authenticate and mail or cause to be
transferred by book-entry to such Holders new Notes equal in principal amount
to any unpurchased portion of the Notes surrendered, provided that each
such new Note will be in the same currency as the surrendered Note and in a
principal amount of $1,000 or €1,000, as the case may be, or an integral
multiple thereof.  Upon the payment of
the purchase price for the Notes accepted for purchase, the Trustee shall
return the Notes purchased to the Company for cancellation.  Any monies remaining after the purchase of
Notes pursuant to a Change of Control Offer shall be returned within three
Business Days by the Trustee to the Company except with respect to monies owed
as obligations to the Trustee pursuant to Article Seven.  For purposes of this Section 4.14, the
Trustee shall act as the Paying Agent for the Dollar Notes and the Euro Paying
Agent shall act as Paying Agent for the Euro Notes.

 

(e)                                  The Company will comply with the
requirements of Rule 14e-1 under the Exchange Act and any other securities laws
and regulations thereunder to the extent such rule, laws and regulations are
applicable in connection with the purchase of the Notes pursuant to a Change of
Control Offer.  To the extent the
provisions of any securities laws and regulations conflict with the provisions
of this Indenture relating to a Change of Control Offer, the Company shall
comply with the applicable securities laws and regulations and shall not be
deemed to have breached its obligations relating to such Change of Control
Offer by virtue thereof.

 

(f)                                    The Company will not be required
to make a Change of Control Offer upon a Change of Control if a third party
makes the Change of Control Offer in the manner, at the times and otherwise in
compliance with the requirements set forth in this Indenture with respect to a
Change of Control Offer made by the Company and purchases all Notes validly
tendered and not withdrawn under such Change of Control Offer.

 

Section 4.15           Limitation on Asset Sales.  The Company will not, and will not permit any
of its Restricted Subsidiaries to, consummate an Asset Sale unless

 

(a)                                  the Company or the applicable
Restricted Subsidiary receives consideration at the time of such Asset Sale at
least equal to the Fair Market Value of the assets sold or otherwise disposed
of as determined in good faith by the Company’s Board of Managers;

 

(b)                                 at least 75% of the
consideration received by the Company or the applicable Restricted Subsidiary
from such Asset Sale shall be in the form of cash or Cash Equivalents, and is
received at the time of the Asset Sale (which shall be deemed to include other
consideration converted to cash or Cash Equivalents within 90 days of such
Asset Sale).  For the purposes of this
provision, the amount of any liabilities shown on the most recent applicable
balance sheet of the Company or the applicable Restricted Subsidiary, other
than liabilities that are by their terms subordinated to the Notes, that are
assumed by the transferee of any such assets will be deemed to be cash for
purposes of this provision; and (iii) upon the consummation of an Asset Sale,
the Company shall

 

60

 

apply, or cause such
applicable Restricted Subsidiary to apply, the Net Cash Proceeds relating to
such Asset Sale within 415 days of having received the Net Cash Proceeds.

 

(c)                                  Additionally, the Company may
only apply the Net Cash Proceeds either (i) 
to prepay any Senior Debt, Guarantor Senior Debt or Indebtedness of a
Restricted Subsidiary that is not a Guarantor and, in the case of any such
Indebtedness under any revolving credit facility, effect a permanent reduction
in the availability under such revolving credit facility, and/or (ii) to prepay
any Pari Passu Indebtedness of the Company, and, in the case of any such
Indebtedness under any revolving credit facility, effect a permanent reduction
in the availability under such revolving credit facility; and/or to (iii) make
an investment in or expenditures for properties and assets (including Capital
Stock of any entity) that replace the properties and assets that were the
subject of the Asset Sale or in properties and assets (including Capital Stock
of any entity) that will be used in the business of the Company and its
Subsidiaries as existing on the Issue Date or in businesses reasonably related
thereto (“Replacement Assets”) and/or (iv) make an acquisition of all of the
capital stock or assets of any Person or division conducting a business
reasonably related to that of the Company or its Subsidiaries.  With respect to clauses (iii) and (iv) above,
the Company only may apply Net Cash Proceeds in excess of $30 million in the
aggregate since the Issue Date from Asset Sales involving assets of the Company
or a Guarantor (other than the Capital Stock of a Foreign Subsidiary) towards
(x) assets which will be owned by the Company or a Guarantor and not
constituting an Investment or (y) the Capital Stock of a Person that becomes a
Guarantor.  On the 416th day after an
Asset Sale or any earlier date, if any, on which the Board of Managers of the
Company or of the applicable Restricted Subsidiary determines not to apply the
Net Cash Proceeds in accordance with the above provisions of this clause (c)
(each, a “Net Proceeds Offer Trigger Date”), such aggregate amount of Net Cash
Proceeds which have not been applied or contractually committed to be applied
(and to the extent not subsequently applied, the Net Proceeds Offer Trigger
Date related thereto shall be deemed to be the date of termination of such contractual
commitment or any earlier date, if any, on which the Board of Managers of the
Company or the board of the applicable Restricted Subsidiary determines not to
apply the Net Cash Proceeds in accordance with such contractual commitment) on
or before such Net Proceeds Offer Trigger Date as permitted by the above
provisions of this clause (c) (the “Net Proceeds Offer Amount”) shall be
applied by the Company or such Restricted Subsidiary to make an offer to
purchase (or repay, prepay or redeem, as the case may be) (the “Net Proceeds
Offer”) on a date (the “Net Proceeds Offer Payment Date”) that is not less than
30 nor more than 45 days following the applicable Net Proceeds Offer Trigger
Date, from all Holders and all holders of Indebtedness that is equal in right
of payment with the Notes and contains provisions requiring that an offer to
purchase such other Indebtedness be made with the proceeds of the Asset Sale,
on a pro rata basis, the maximum principal amount of Notes and other
Indebtedness that may be purchased with the Net Proceeds Offer Amount.  Notwithstanding the foregoing, the obligation
to make a Net Proceeds Offer shall be suspended until such time as the
aggregate amount of the Net Proceeds Offer Amount is equal to or exceeds $30
million.  The offer price in any Net
Proceeds Offer will be equal to 100% of the principal value of the Notes to be
purchased, plus any accrued and unpaid interest to the date of purchase.  The following events will be deemed to constitute
an Asset Sale and the Net Cash Proceeds for such Asset Sale must be applied in
accordance

 

61

 

with this section 4.15:
in the event any non-cash consideration received by the Company or any
Restricted Subsidiary of the Company in connection with any Asset Sale is
converted into or sold or otherwise disposed of for cash (other than interest
received with respect to any such non-cash consideration), or in the event of
the transfer of substantially all (but not all) of the property and assets of
the Company and its Restricted Subsidiaries as an entirety to a Person in a
transaction permitted under Section 5.01 and as a result thereof the
Company is no longer an obligor on the Notes, the successor corporation shall
be deemed to have sold the properties and assets of the Company and its
Restricted Subsidiaries not so transferred for purposes of this Section 4.15,
and shall comply with the provisions of this covenant with respect to such
deemed sale as if it were an Asset Sale. 
In addition, the Fair Market Value of such properties and assets of the
Company or its Restricted Subsidiaries deemed to be sold shall be deemed to be
Net Cash Proceeds for purposes of this Section 4.15.

 

(d)                                 Notwithstanding the immediately
preceding paragraphs, the Company and its Restricted Subsidiaries may
consummate an Asset Sale without complying with such paragraphs to the extent
(i) at least 80% of the consideration for such Asset Sale constitutes
Replacement Assets and (ii) such Asset Sale is for Fair Market Value; provided,
however, that any consideration that does not constitute Replacement
Assets that is received by the Company or any of its Restricted Subsidiaries in
connection with any Asset Sale permitted under this paragraph shall constitute
Net Cash Proceeds and will be subject to the provisions described in the
preceding paragraphs.

 

(e)                                  Each notice of a Net Proceeds
Offer pursuant to this Section 4.15 shall be mailed, by first-class mail,
by the Company to Holders of Notes at their last registered address not more
than 30 days following the Net Proceeds Offer Trigger Date, with a copy to the
Trustee.  The notice shall contain all
instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Net Proceeds Offer and shall state the following terms:

 

(1)                                  that the Net Proceeds Offer is
being made pursuant to Section 4.15 of the Indenture, that all Notes
tendered will be accepted for payment; provided, however, that if
the aggregate principal amount of Notes tendered in a Net Proceeds Offer plus
accrued interest at the expiration of such offer exceeds the aggregate amount
of the Net Proceeds Offer, the Company shall select the Notes to be purchased
on a pro rata basis (with such adjustments as may be deemed appropriate by the
Company so that only Notes in denominations of $1,000 or €1,000, as applicable,
or multiples thereof shall be purchased) and that the Net Proceeds Offer shall
remain open for a period of 20 Business Days or such longer periods as may be
required by law;

 

(2)                                  the purchase price (including
the amount of accrued interest) and the Net Proceeds Offer Payment Date (which
shall be not less than 30 nor more than 45 days following the applicable Net
Proceeds Offer Trigger Date and which shall be at least five Business Days after
the Trustee receives notice thereof from the Company);

 

62

 

(3)                                  that any Note not tendered will
continue to accrue interest;

 

(4)                                  that, unless the Company
defaults in making payment therefor, any Note accepted for payment pursuant to
the Net Proceeds Offer shall cease to accrue interest after the Net Proceeds
Offer Payment Date;

 

(5)                                  that Holders electing to have a
Note purchased pursuant to a Net Proceeds Offer will be required to surrender
the Note, with the form entitled “Option of Holder to Elect Purchase” on the
reverse of the Note completed, to the Paying Agent at the address specified in
the notice prior to the close of business on the third Business Day prior to
the Net Proceeds Offer Payment Date;

 

(6)                                  that Holders will be entitled to
withdraw their election if the Paying Agent receives, not later than the second
Business Day prior to the Net Proceeds Offer Payment Date, a telegram, telex,
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Notes the holder delivered for purchase and a statement
that such Holder is withdrawing his election to have such Note purchased; and

 

(7)                                  that Holders whose Notes are
purchased only in part will be issued new Notes of the appropriate series in a
principal amount equal to the unpurchased portion of the Note surrendered; provided,
however, that each Note purchased and each new Note issued shall be in
an original principal amount of $1,000, €1,000 or integral multiples thereof.

 

On or before
the Net Proceeds Offer Payment Date, the Company shall (i) accept for payment
Notes or portions thereof (in integral multiples of $1,000 and €1,000) validly
tendered pursuant to the Net Proceeds Offer, (ii) deposit with the Paying Agent,
in accordance with Section 2.14, U.S. Legal Tender (in the case of Dollar
Notes) and/or euros (in the case of Euro Notes) sufficient to pay the purchase
price plus accrued and unpaid interest, if any, of all Notes to be purchased
and (iii) deliver to the Trustee Notes so accepted together with an Officers’
Certificate stating the Notes or portions thereof being purchased by the
Company.  Upon receipt by the Paying
Agent of the monies specified in clause (ii) above and a copy of the Officers’
Certificate specified in clause (iii) above, the Paying Agent shall promptly
mail to the Holders of Notes so accepted payment in an amount equal to the
purchase price plus accrued and unpaid interest, if any, out of the funds
deposited with the Paying Agent in accordance with the preceding sentence.  The Trustee shall promptly authenticate and
mail to such Holders new Notes equal in principal amount to any unpurchased
portion of the Notes surrendered.  Upon
the payment of the purchase price for the Notes accepted for purchase, the
Trustee shall return the Notes purchased to the Company for cancellation.  Any monies remaining after the purchase of
Notes pursuant to a Net Proceeds Offer shall be returned within three Business
Days by the Trustee to the Company except with respect to monies owed as
obligations to the Trustee pursuant to Article Seven.  For purposes of this Section 4.15, the
Trustee shall act as the Paying Agent for the Dollar Notes and the Euro Paying
Agent shall act as the Paying Agent for the Euro Notes.

 

63

 

To the extent
the amount of Notes tendered pursuant to any Net Proceeds Offer is less than
the amount of Net Cash Proceeds subject to such Net Proceeds Offer, the Company
may use any remaining portion of such Net Cash Proceeds not required to fund
the repurchase of tendered Notes for general corporate purposes and such Net
Proceeds Offer Amount shall be reset to zero.

 

The Company
will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such rule, laws
and regulations are applicable in connection with the repurchase of Notes
pursuant to a Net Proceeds Offer.  To the
extent the provisions of any securities laws and regulations conflict with the
provisions of this Indenture relating to a Net Proceeds Offer, the Company
shall comply with the applicable securities laws and regulations and shall not
be deemed to have breached its obligations relating to such Net Proceeds Offer by
virtue thereof.

 

Section 4.16           Prohibition on Incurrence of
Senior Subordinated Debt.

 

The Company
will not incur or suffer to exist Indebtedness that is senior in right of
payment to the Notes and subordinate in right of payment to any other
Indebtedness of the Company.

 

For purposes
of the foregoing the phrase “subordinate in right of payment” means debt
subordination only and not lien subordination, and accordingly, (i) unsecured
indebtedness shall not be deemed to be subordinated in right of payment to secured
indebtedness merely by virtue of the fact that it is unsecured and (ii) junior
liens, second liens and other contractual arrangements that provide for
priorities among holders of the same or different issues of indebtedness with
respect to any collateral or the proceeds of collateral shall not constitute
subordination in right of payment.

 

Section 4.17           Limitation on Preferred Stock of
Restricted Subsidiaries.

 

The Company
will not permit any of its Restricted Subsidiaries to issue any Preferred Stock
(other than to the Company or to another Restricted Subsidiary of the Company)
or permit any Person (other than the Company or a Restricted Subsidiary of the
Company) to own any Preferred Stock of any Restricted Subsidiary of the
Company; provided, however, that any Person that is not a
Restricted Subsidiary of the Company may issue Preferred Stock to equity
holders of such Person in exchange for equity interests if after such issuance
such Person becomes a Restricted Subsidiary of the Company.

 

Section 4.18           Limitation on Liens.

 

The Company
shall not, and shall not permit any of its Restricted Subsidiaries to create,
incur, or otherwise cause or suffer to exist or become effective any Liens of
any kind upon any property or assets of the Company or any Restricted
Subsidiary now owned or hereafter acquired, which secures Pari Passu
Indebtedness or Indebtedness subordinated to the Notes unless such Indebtedness
is incurred in accordance with the Indenture and (i) if such Lien secures Pari
Passu Indebtedness of the

 

64

 

Company, then the Notes are secured on an equal and ratable basis with
the obligations so secured until such time as such obligation is no longer
secured by a Lien or (ii) if such Lien secures Indebtedness which is
subordinated to the Notes, any such Lien shall be subordinated to a Lien
granted to the Holders in the same collateral as that securing such Lien to the
same extent as such subordinated Indebtedness is subordinated to the Notes.

 

Section 4.19           Limitation of Guarantees by
Restricted Subsidiaries.

 

The Company
will not permit any of its Restricted Subsidiaries, directly or indirectly, by
way of the pledge of any intercompany note or otherwise, to assume, guarantee
or in any other manner become liable with respect to any Indebtedness of the
Company or any other Restricted Subsidiary (other than (A) Indebtedness under
Commodity Agreements and Currency Agreements in reliance on clause (v) of the
definition of Permitted Indebtedness, (B) Interest Swap Obligations incurred in
reliance on clause (iv) of the definition of Permitted Indebtedness or (C) any
guarantee by a Foreign Subsidiary of Indebtedness of another Foreign Subsidiary
permitted under Section 4.12), unless, in any such case (a) such Restricted
Subsidiary that is not a Guarantor executes and delivers a supplemental
indenture to this Indenture, providing a Guarantee by such Restricted
Subsidiary and (b) (x) if any such assumption, guarantee or other liability by
such Restricted Subsidiary is provided in respect of Pari Passu Indebtedness,
then the guarantee or other instrument provided by such Restricted Subsidiary
in respect of such Pari Passu Indebtedness shall be pari passu in right of
payment with the Guarantees and (y) any such assumption, guarantee or other
liability of such Restricted Subsidiary that is provided in respect of
Indebtedness that is expressly subordinated to the Notes shall be subordinated
to the Guarantees pursuant to subordination provisions no less favorable in any
material respect to the Holders than the subordination provisions contained in
this Indenture.

 

Section 4.20           Conduct of Business.

 

The Company
and its Restricted Subsidiaries (other than a Securitization Entity) will not
engage in any businesses which are not the same, similar or related to the
businesses in which the Company and its Restricted Subsidiaries were engaged on
the Issue Date, except to the extent that after engaging in any new business,
the Company and its Restricted Subsidiaries, taken as a whole, remain
substantially engaged in similar lines of business as were conducted by them on
the Issue Date.  HI Financial shall only
conduct the business of holding Indebtedness of Restricted Subsidiaries of the
Company and shall not incur or be liable for any Indebtedness other than
guarantees otherwise permitted under this Indenture.  Tioxide Group shall only conduct the business
of holding the equity interests in Restricted Subsidiaries and shall not incur
or be liable for any Indebtedness other than guarantees otherwise permitted
under this Indenture.  Holdings U.K.  shall only conduct the business of holding
equity interests and Indebtedness of Restricted Subsidiaries and shall not
incur or be liable for any Indebtedness other than Indebtedness owing to the
Company or HI Financial.  The Company and
its Domestic Subsidiaries may advance funds to any Foreign Subsidiary only if
such Funds are either (i) advanced directly by the Company or a Domestic
Subsidiary, (ii) contributed to HI Financial as common equity and HI Financial
loans such funds, directly or indirectly

 

65

 

through Wholly Owned Restricted Subsidiaries, to such Foreign
Subsidiary or (iii) contributed to Tioxide Group as common equity and Tioxide
Group invests such funds in such Foreign Subsidiary of the Company.

 

Section 4.21           Capital Stock of Certain
Subsidiaries.

 

The Company
will at all times hold directly, or indirectly through a Wholly Owned
Restricted Subsidiary, (i) all issued and outstanding Capital Stock of Tioxide
Group and (ii) all issued and outstanding Capital Stock of Holdings U.K.  Neither Tioxide Group nor Holdings U.K.  will issue any Capital Stock (or any direct
or indirect rights, options or warrants to acquire such Capital Stock) to any
Person other than the Company or a Wholly Owned Restricted Subsidiary of the
Company except to qualify directors if required by applicable law or other
similar legal requirements.  Tioxide
Group will not make any direct or indirect distribution with respect to its
Capital Stock to any Person other than the Company or a Wholly Owned Restricted
Subsidiary of the Company.  Holdings U.K.
will not make any direct or indirect distribution with respect to its Capital
Stock to any Person other than the Company or a Wholly Owned Restricted
Subsidiary of the Company.

 

ARTICLE V

 

SUCCESSOR CORPORATION

 

Section 5.01           Merger, Consolidation and Sale of
Assets.

 

(a)                                  The Company shall not, in a
single transaction or a series of related transactions, consolidate or merge
with or into any Person, or sell, transfer or otherwise dispose of (or permit
any Restricted Subsidiary of the Company to sell, assign, transfer, lease,
convey or otherwise dispose of) all or substantially all of the Company’s
assets (determined on a consolidated basis for the Company and its Restricted
Subsidiaries), unless:

 

(i)                                     either (1) the Company shall be
the surviving or continuing entity or (2) the Person (if other than the
Company) formed by such consolidation or merger shall be an entity organized
and validly existing under the laws of the United States or any State thereof
or the District of Columbia (the “Surviving Entity”)

 

(ii)                                  the Surviving Entity, if any,
expressly assumes, by supplemental indenture (in form and substance
satisfactory to the Trustee), all rights and obligations of the Company under
the Notes and the Indenture;

 

(iii)                               immediately after giving effect
to such transaction including the assumption of the Notes, the Company or the
Surviving Entity shall be able to incur at least $1.00 of additional
Indebtedness (other than Permitted Indebtedness) pursuant to Section 4.12;

 

66

 

(iv)                              immediately before and after
giving effect to such transaction, including the assumption of the Notes, no
Default or Event of Default occurred or exists; and

 

(v)                                 the Company or the Surviving
Entity shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel stating that all conditions precedent in this Indenture
relating to such transaction have been satisfied.

 

(b)                                 For purposes of this Section 5.01,
the transfer (by lease, assignment, sale or otherwise, in a single transaction
or series of related transactions) of all or substantially all of the
properties and assets of one or more Restricted Subsidiaries of the Company,
the Capital Stock of which constitutes all or substantially all of the
properties or assets of the Company, will be deemed to be the transfer of all
or substantially all of the properties and assets of the Company.

 

(c)                                  Each Guarantor (other than any
Guarantor whose Guarantee is to be released in accordance with the terms of the
Guarantee and this Indenture in connection with any transaction complying with
the provisions of Section 4.15) will not, and the Company will not cause
or permit any Guarantor to, consolidate with or merge with or into any Person
other than the Company or any other Guarantor unless: (i) the entity formed by
or surviving any such consolidation or merger (if other than the Guarantor) or
to which such sale, lease, conveyance or other disposition shall have been made
assumes by supplemental indenture all of the obligations of the Guarantor on
its Guarantee; (ii) immediately after giving effect to such transaction, no
Default or Event of Default shall have occurred and be continuing; and (iii)
immediately after giving effect to such transaction and the use of any net
proceeds therefrom on a pro forma basis, the Company could satisfy the
provisions of Section 5.01(a)(iii). 
Any merger or consolidation of a Guarantor with and into the Company
(with the Company being the surviving entity) or another Guarantor need not
comply with clause (a) above.

 

Notwithstanding
anything in this Section 5.01 to the contrary, (a) the Company may merge
with an Affiliate that has no material assets or liabilities and that is
incorporated or organized solely for the purpose of reincorporating or
reorganizing the Company in another state of the United States or the District
of Columbia without complying with Section 5.01(a)(iii) and (b) any
transaction characterized as a merger under applicable state law where each of
the constituent entities survives, shall not be treated as a merger for
purposes of this covenant, but shall instead be treated as (x) an Asset Sale,
if the result of such transaction is the transfer of assets by the Company or a
Restricted Subsidiary, or (y) an Investment, if the result of such transaction
is the acquisition of assets by the Company or a Restricted Subsidiary.

 

Section 5.02           Successor Corporation Substituted.

 

Upon any
consolidation, combination or merger, or any transfer of all or substantially
all of the assets of the Company in accordance with Section 5.01 in which
the Company is not the Surviving Entity, the successor Person formed by such

 

67

 

consolidation or into which the Company is merged or to which such
conveyance, lease or transfer is made shall succeed to, and be substituted for,
and may exercise every right and power of, the Company under this Indenture and
the Notes with the same effect as if such Surviving Entity had been named as
such.

 

ARTICLE VI

 

DEFAULT AND REMEDIES

 

Section 6.01           Events of Default.

 

Each of the
following shall be an “Event of Default”:

 

(1)                                  the failure to pay interest any
Notes when the same becomes due and payable and such Default continues for a
period of 30 days (whether or not such payment shall be prohibited by the
subordination provisions described under Article Ten);

 

(2)                                  the failure to pay principal on
any Notes, when such principal becomes due and payable, at maturity, upon
redemption or otherwise (including the failure to make a payment when due to
purchase the Notes tendered pursuant to a Change of Control Offer or a Net
Proceeds Offer) (whether or not such payment shall be prohibited by the
subordination provisions described under Article Ten);

 

(3)                                  the failure of the Company or
any Guarantor to comply with any covenant or agreement contained in this
Indenture, which default continues for a period of 60 days after the Company
receives a written notice specifying the default (and demanding that such
default be remedied) from the Trustee or the Holders of at least 25% of the
outstanding principal amount of the Notes (including any Additional Notes
subsequently issued under the Indenture) (except in the case of a default with
respect to Section 5.01, which will constitute an Event of Default with
such notice requirement but without such passage of time requirement);

 

(4)                                  the occurrence of any default
under any agreement governing Indebtedness of the Company or any of its
Restricted Subsidiaries, if that default: 
(A) is caused by the failure to pay at final maturity the principal
amount of any Indebtedness after giving effect to any applicable grace periods
and any extensions of time for payment of such Indebtedness; or (B) results in the acceleration of the final stated
maturity of any such Indebtedness,
and in each case if the aggregate principal amount of such Indebtedness unpaid
or accelerated aggregates $35.0 million or more at any time and such
Indebtedness has not been discharged in full or such acceleration has not been
rescinded or annulled within 30 days of such final maturity or acceleration;

 

(5)                                  the failure of the Company or
any of the Guarantors to pay or otherwise discharge or stay one or more
judgments in an aggregate amount

 

68

 

exceeding $35.0 million (which are not covered
by indemnities or third party insurance as to which the Person giving such indemnity
or such insurer has not disclaimed coverage) for a period of 60 days after such
judgments become final and non-appealable;

 

(6)                                  the Company or any Restricted
Subsidiary which is also a Significant Subsidiary (A) commences a voluntary
case or proceeding under any Bankruptcy Law with respect to itself, (B)
consents to the entry of a judgment, decree or order for relief against it in
an involuntary case or proceeding under any Bankruptcy Law, (C) consents to the
appointment of a custodian of it or for substantially all of its property, (D)
consents to or acquiesces in the institution of a bankruptcy or an insolvency
proceeding against it or (E) makes a general assignment for the benefit of its
creditors;

 

(7)                                  a court of competent
jurisdiction enters a judgment, decree or order for relief in respect of the
Company or any Restricted Subsidiary which is also a Significant Subsidiary in
an involuntary case or proceeding under any Bankruptcy Law, which shall (A)
approve as properly filed a petition seeking reorganization, arrangement,
adjustment or composition in respect of the Company or any Significant
Subsidiary, (B) appoint a custodian of the Company or any Significant
Subsidiary or for substantially all of its property or (C) order the winding-up
or liquidation of its affairs; and such judgment, decree or order shall remain
unstayed and in effect for a period of 60 consecutive days; or

 

(8)                                  the failure of any Guarantee of
any Significant Subsidiary of the Company to be in full force and effect (other
than as provided in accordance with the terms of such Guarantee and this
Indenture) or any of the Guarantors denies its liability under its Guarantee.

 

Section 6.02           Acceleration.

 

(a)                                  If an Event of Default of the
type described in Section 6.01(6) or (7) occurs with respect to the
Company and is continuing, then all unpaid principal of, and premium, if any,
and accrued and unpaid interest on all of the outstanding Notes (including any
Additional Notes subsequently issued under this Indenture) will become immediately
due and payable without further action or notice.  If any other Event of Default occurs and is
continuing, then the Trustee or the Holders of at least 25% in principal amount
of outstanding Notes (including any Additional Notes subsequently issued under
this Indenture) may declare the principal of and accrued interest on all the
Notes to be due and payable by notice in writing (the “Acceleration Notice”) to
the Company and the Trustee, which notice must also specify that it is a “notice
of acceleration.”  In that event, the
Notes will become immediately due and payable unless, if there are any amounts
outstanding under the Designated Senior Debt, then the Notes will become
immediately due and payable only upon the first to occur of (i) an acceleration
under the Designated Senior Debt or (ii) five (5) business days after receipt
by the Company and the Representative under the Designated Senior Debt of such
Acceleration Notice.

 

69

 

(b)                                 At any time after a declaration
of acceleration with respect to the Notes as described in Section 6.02(a),
the Holders of a majority in principal amount of the Notes (including any
Additional Notes) may rescind and cancel such declaration and its consequences:

 

(1)                                  if the rescission would not
conflict with any judgment or decree;

 

(2)                                  if all existing Events of
Default have been cured or waived except nonpayment of principal or interest
that has become due solely because of the acceleration;

 

(3)                                  to the extent the payment of
such interest is lawful, interest on overdue installments of interest and
overdue principal, which has become due otherwise than by such declaration of
acceleration, has been paid;

 

(4)                                  if the Company has paid the
Trustee its reasonable compensation and reimbursed the Trustee for its
expenses, disbursements and advances; or

 

(5)                                  in the event of the cure or
waiver of an Event of Default of the type described in Section 6.01(6) or
(7), the Trustee shall have received an Officers’ Certificate and an Opinion of
Counsel that such Event of Default has been cured or waived.

 

No such rescission shall affect any subsequent
Default or impair any right consequent thereto.

 

Section 6.03           Other Remedies.

 

If an Event of
Default occurs and is continuing, the Trustee may pursue any available remedy
by proceeding at law or in equity to collect the payment of principal of,
premium, if any, or accrued and unpaid interest on the Notes or to enforce the
performance of any provision of the Notes or this Indenture.

 

The Trustee
may maintain a proceeding even if it does not possess any of the Notes or does
not produce any of them in the proceeding. 
A delay or omission by the Trustee or any Noteholder in exercising any
right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default.  No remedy is exclusive of any other
remedy.  All available remedies are
cumulative to the extent permitted by law.

 

Section 6.04           Waiver of Past Defaults.

 

Subject to
Sections 6.07 and 9.02, the Holders of a majority in aggregate principal amount
of the Notes (including the aggregate principal amount of any Additional Notes
subsequently issued under this Indenture) by notice to the Trustee may waive
any existing Default or Event of Default hereunder and its consequences, except
a

 

70

 

Default in the payment of the principal of or interest on any Note as
specified in clauses (1) and (2) of Section 6.01.

 

Section 6.05           Control by Majority.

 

Subject to Section 2.09,
the Holders of a majority in aggregate principal amount of the then outstanding
Notes may direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee or exercising any trust or power conferred
on it, including, without limitation, any remedies provided for in Section 6.03.  Subject to Section 7.01, however, the
Trustee may, in its discretion, refuse to follow any direction that conflicts
with any law or this Indenture, that the Trustee determines may be unduly
prejudicial to the rights of another Holder (it being understood that the
Trustee shall have no duty to ascertain whether or not such actions or
forbearances are unduly prejudicial to such Holders) or that may involve the Trustee
in personal liability; provided, however, that the Trustee may
take any other action deemed proper by the Trustee, in its discretion, that is
not inconsistent with such direction.

 

Prior to
taking any action hereunder, the Trustee shall be entitled to indemnification
by the Holders satisfactory to it in its sole discretion against all losses and
expenses caused by taking or not taking such action

 

Section 6.06           Limitation on Suits.

 

A Holder may
not pursue any remedy with respect to this Indenture or the Notes unless:

 

(1)                                  the Holder gives to the Trustee
notice of a continuing Event of Default;

 

(2)                                  Holders of at least 25% in
aggregate principal amount of the then outstanding Notes make a written request
to the Trustee to pursue the remedy;

 

(3)                                  such Holders offer to the
Trustee indemnity or security against any loss, liability or expense to be
incurred in compliance with such request which is satisfactory to the Trustee;

 

(4)                                  the Trustee does not comply with
the request within 45 days after receipt of the request and the offer of
satisfactory indemnity or security; and

 

(5)                                  during such 45-day period the
Holders of a majority in aggregate principal amount of the then outstanding
Notes do not give the Trustee a direction which, in the opinion of the Trustee,
is inconsistent with the request.

 

A Holder may
not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over such other Holder.

 

71

 

Section 6.07           Rights of Holders To Receive
Payment.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder to receive
payment of principal of, premium and interest on a Note, on or after the
respective due dates expressed in such Note, or to bring suit for the
enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of such Holder.

 

Section 6.08           Collection Suit by Trustee.

 

If an Event of
Default in payment of principal or interest specified in clause (1) or (2) of Section 6.01
occurs and is continuing, the Trustee may recover judgment in its own name and
as trustee of an express trust against the Company or any other obligor on the
Notes for the whole amount of principal and accrued interest remaining unpaid,
together with interest on overdue principal and, to the extent that payment of
such interest is lawful, interest on overdue installments of interest at the
rate set forth in the Notes and such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel.

 

Section 6.09           Trustee May File Proofs of
Claim.

 

The Trustee
may file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, taxes, disbursements and advances of
the Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relating to the Company or any other obligor upon the Notes, any of
their respective creditors or any of their respective property, and shall be
entitled and empowered to collect and receive any monies or other property
payable or deliverable on any such claims and to distribute the same, and any
custodian in any such judicial proceedings is hereby authorized by each Holder
to make such payments to the Trustee and, in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses, taxes,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07.  The Company’s payment obligations under this Section 6.09
shall be secured in accordance with the provisions of Section 7.07.  Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

 

Section 6.10           Priorities.

 

If the Trustee
collects any money or property pursuant to this Article Six, it shall pay
out the money in the following order:

 

First: to the
Trustee, its agents and attorneys for amounts due under Sections 6.09 and 7.07;

 

72

 

Second: if the
Holders are forced to proceed against the Company directly without the Trustee,
to Holders for their collection costs;

 

Third: to
Holders for amounts due and unpaid on the Notes for principal, premium, if any,
and interest, ratably, without preference or priority of any kind, according to
the amounts due and payable on the Notes for principal, premium, if any, and
interest, respectively; and

 

Fourth: to the
Company or any other obligor on the Notes, as their interests may appear, or as
a court of competent jurisdiction may direct.

 

The Trustee,
upon prior notice to the Company, may fix a record date and payment date for
any payment to Holders pursuant to this Section 6.10.

 

Section 6.11           Undertaking for Costs.

 

In any suit
for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court
in its discretion may require the filing by any party litigant in the suit of
an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in the suit, having due regard to the merits and good faith of
the claims or defenses made by the party litigant.  This Section 6.11 does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.06 or 6.07.

 

Section 6.12           Expenses and Services After an
Event of Default.

 

When the
Trustee incurs expenses or renders services after the occurrence of an Event of
Default described in this Article VI, the expenses and compensation for
services are intended to constitute expenses of administration under any
bankruptcy law.

 

ARTICLE VII

 

TRUSTEE

 

Section 7.01           Duties of Trustee.

 

(a)                                  If a Default or an Event of
Default has occurred and is continuing, the Trustee shall exercise such rights
and powers vested in it by this Indenture and use the same degree of care and
skill in its exercise thereof as a prudent Person would exercise or use under
the circumstances in the conduct of its own affairs.

 

(b)                                 Except during the continuance of
a Default or an Event of Default:

 

(1)                                  The Trustee need perform only
those duties as are specifically set forth in this Indenture or the TIA and no
duties, covenants, responsibilities or obligations shall be implied in this
Indenture that are adverse to the Trustee.

 

73

 

(2)                                  In the absence of bad faith on
its part, the Trustee may conclusively rely, as to the truth of the statements
and the correctness of the opinions expressed therein, upon certificates
(including Officers’ Certificates) or opinions (including Opinions of Counsel)
furnished to the Trustee and conforming to the requirements of this
Indenture.  However, as to any
certificates or opinions which are required by any provision of this Indenture
to be delivered or provided to the Trustee, the Trustee shall examine the
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture but need not confirm or investigate the accuracy
or mathematical calculations or other facts stated therein or otherwise verify
the contents thereof.

 

(c)                                  Notwithstanding anything to the
contrary herein contained, the Trustee may not be relieved from liability for
its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

 

(1)                                  This paragraph does not limit
the effect of paragraph (b) of this Section 7.01.

 

(2)                                  The Trustee shall not be liable
for any error of judgment made in good faith by a Responsible Officer, unless
it is proved that the Trustee was negligent in ascertaining the pertinent
facts.

 

(3)                                  The Trustee shall not be liable
with respect to any action it takes or omits to take in good faith in
accordance with a direction received by it pursuant to Section 6.02, 6.04
or 6.05.

 

(d)                                 No provision of this Indenture
shall require the Trustee to expend or risk its own funds or otherwise incur
any financial liability in the performance of any of its duties hereunder or in
the exercise of any of its rights or powers if it shall have reasonable grounds
for believing that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it.

 

(e)                                  Every provision of this
Indenture that in any way relates to the Trustee is subject to paragraphs (a),
(b), (c) and (d) of this Section 7.01.

 

(f)                                    The Trustee shall not be liable
for interest on any money or assets received by it except as the Trustee may
agree with the Company.  Assets held in
trust by the Trustee need not be segregated from other assets except to the
extent required by law.

 

Section 7.02                                Rights
of Trustee.

 

Subject to Section 7.01:

 

(a)                                  In the absence of bad faith,
negligence or willful misconduct on the part of the Trustee, the Trustee may
conclusively rely and shall be fully protected in acting or refraining from
acting upon any document believed by it to be genuine and to have been signed
or presented by the proper Person.  The
Trustee need not investigate any fact or matter stated in the document.

 

74

 

(b)                                 Before the Trustee acts or
refrains from acting, it may consult with counsel and may require an Officers’
Certificate or an Opinion of Counsel, which shall conform to Sections 13.04 and
13.05.  The Trustee shall not be liable
for and shall be fully protected in respect of any action it takes or omits to
take in good faith in reliance on such Officers’ Certificate, or an Opinion of
Counsel or advice of counsel.

 

(c)                                  The Trustee shall not be liable
for any action that it takes or omits to take in good faith that it reasonably
believes to be authorized or within its rights or powers.

 

(d)                                 The Trustee shall not be bound
to make any investigation into the facts or matters stated in any resolution,
certificate (including any Officers’ Certificate), statement, instrument,
opinion (including any Opinion of Counsel), notice, request, direction,
consent, order, bond, debenture, or other paper or document, but the Trustee,
in its discretion, may make such further inquiry or investigation into such
facts or matters as it may see fit and, if the Trustee shall determine to make
such further inquiry or investigation, it shall be entitled, upon reasonable
notice to the Company, to examine the books, records, and premises of the
Company, personally or by agent or attorney.

 

(e)                                  The Trustee shall be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture at the request, order or direction of any of the Holders of the Notes
pursuant to the provisions of this Indenture, unless such Holders shall have
offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which may be incurred by it in compliance with such
request, order or direction.

 

(f)                                    The Trustee may consult with
counsel of its selection, and the advice or opinion of counsel with respect to
legal matters relating to this Indenture and the Notes shall be full and
complete authorization and protection from liability with respect to any action
taken, omitted or suffered by it hereunder in good faith and in accordance with
the advice or opinion of such counsel.

 

(g)                                 The Trustee shall not be
required to give any bond or surety in respect of the performance of its powers
and duties hereunder.

 

(h)                                 The permissive rights of the
Trustee to do things enumerated in this Indenture shall not be construed as a
duty.

 

(i)                                     The Trustee may execute any of
the trusts or powers hereunder or perform any duties hereunder either directly
or by or through agents, attorneys or independent contractors and the Trustee
will not be responsible for any misconduct or negligence on the part of any
agent, attorney or independent contractor appointed with due care by it
hereunder.

 

(j)                                     The Trustee shall not be deemed
to have notice of any Default or Event of Default unless a Responsible Officer
of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a default is received by

 

75

 

the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the Notes and
this Indenture.

 

(k)                                  The rights, privileges,
protections, immunities and benefits given to the Trustee, including, without
limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each
agent, custodian and other Person employed to act hereunder.

 

(l)                                     The Trustee may request that the
Company deliver an incumbency certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which incumbency certificate may be signed
by any Person authorized to sign an incumbency certificate, including any
Person as so authorized in any such certificate previously delivered and not
superseded.

 

Section 7.03                                Individual
Rights of Trustee.

 

The Trustee in
its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Company, any Restricted or Unrestricted
Subsidiary, or their respective Affiliates, with the same rights it would have
if it were not Trustee.  Any Agent may do
the same with like rights.  However, the
Trustee must comply with Sections 7.10 and 7.11.

 

Section 7.04                                Trustee’s
Disclaimer.

 

The Trustee
makes no representation as to the validity or adequacy of this Indenture or the
Notes, and it shall not be accountable for the Company’s use of the proceeds
from the Notes, and it shall not be responsible for any statement of the
Company in this Indenture or the Notes other than the certificate of
authentication.

 

Section 7.05                                Notice
of Default.

 

If a Default
or an Event of Default occurs and is continuing and if the Trustee has actual
knowledge of such Default or Event of Default, the Trustee shall mail to each
Noteholder notice of the uncured Default or Event of Default on the later of
(i) 60 days after such Default or Event of Default occurs or (ii) 10 days after
the Trustee has actual knowledge of such Default or Event of Default.  Except in the case of a Default or an Event
of Default in the payment of interest or principal of, premium or interest on,
any Note, including an accelerated payment and the failure to make payment on
the Change of Control Payment Date pursuant to a Change of Control Offer or on
a Net Proceeds Offer Payment Date pursuant to a Net Proceeds Offer and, except
in the case of a failure to comply with Article Five, the Trustee may
withhold the notice if and so long as its Responsible Officer(s) in good faith
determines that withholding the notice is in the interest of the Holders.  The Trustee shall not be deemed to have
knowledge of a Default or Event of Default other than (i) any Event of Default
occurring pursuant to Sections 6.01(1) or 6.01(2); or (ii) any Default or Event
of Default of which a Trust Officer shall have received written notification or
obtained actual knowledge.  As used
herein, the term “actual knowledge” means the actual fact or statement of
knowing, without any duty

 

76

 

to make any investigation with regard thereto.  During the existence of an Event of Default,
the Trustee will exercise such rights and powers vested in it by this
Indenture, and use the same degree of care and skill in its exercise as a
prudent Person would exercise or use under the circumstances in the conduct of his
own affairs.

 

Section 7.06                                Reports
by Trustee to Holders.

 

Within 60 days
after April 15 of each year beginning with April 15, 2005, the
Trustee shall, to the extent that any of the events described in TIA § 313(a)
occurred within the previous twelve months, but not otherwise, mail to each
Noteholder a brief report dated as of such date that complies with TIA § 313(a).  The Trustee also shall comply with TIA § 313(b)
and 313(c).

 

A copy of each
report at the time of its mailing to Holders shall be mailed to the Company and
filed with the SEC and each stock exchange, if any, on which the Notes are
listed.

 

The Company
shall promptly notify the Trustee if the Notes become listed on any stock
exchange, and if the Notes are so listed, the Trustee shall comply with TIA § 313(d).

 

Section 7.07                                Compensation
and Indemnity.

 

The Company
shall pay to the Trustee from time to time, and the Trustee shall be entitled
to, such compensation as may be agreed upon by the Company and the
Trustee.  The Trustee’s compensation shall
not be limited by any law on compensation of a trustee of an express
trust.  The Company shall reimburse the
Trustee promptly upon request for all reasonable out-of-pocket expenses,
disbursements and advances incurred or made by it in connection with the
performance of its duties and the discharge of its obligations under this
Indenture.  Such expenses shall include
the reasonable fees and expenses of the Trustee’s agents and counsel.

 

The Company
shall indemnify the Trustee and its agents, employees, officers, stockholders
and directors for, and hold them harmless against, any loss, liability or
expense including taxes (other than taxes based on the income of the Trustee)
and reasonable attorneys’ fees and expenses incurred by them except for such
actions to the extent caused by any negligence, bad faith or willful misconduct
on their part, arising out of or in connection with the acceptance or
administration of this trust including the reasonable costs and expenses of
defending themselves against or investigating any claim (whether asserted by
the Company, and Holder or any other Person) or liability in connection with
the exercise or performance of any of the Trustee’s rights, powers or duties
hereunder.  The Trustee shall notify the
Company promptly of any claim asserted against the Trustee or any of its
agents, employees, officers, stockholders and directors for which it may seek
indemnity.  Failure by the Company to so
notify the Trustee shall not relieve the Company of its obligations
hereunder.  The Company shall defend the
claim and the Trustee shall cooperate in the defense at the Company’s
expense.  The Trustee and its agents,
employees, officers, stockholders and directors subject to the

 

77

 

claim may have separate counsel and the Company shall pay the
reasonable fees and expenses of such counsel; provided, however,
that the Company will not be required to pay such fees and expenses if it
assumes the Trustee’s defense and there is no conflict of interest between the
Company and the Trustee and its agents, employees, officers, stockholders and
directors subject to the claim in connection with such defense as reasonably
determined by the Trustee; provided, further, that, unless the
Company otherwise agrees in writing, the Company shall not be liable to pay the
fees and expenses of - more than one counsel at any given time located within
one particular jurisdiction.  The Company
need not pay for any settlement made without its written consent which consent
shall not be unreasonably withheld.  The
Company need not reimburse any expense or indemnify against any loss or
liability to the extent incurred by the Trustee through its negligence, bad
faith or willful misconduct.

 

To secure the
Company’s payment obligations in this Section 7.07, the Trustee shall have
a lien prior to the Notes on all assets or money held or collected by the
Trustee, in its capacity as Trustee, except assets or money held in trust to
pay principal of or interest on particular Notes.

 

When the
Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(6) or (7) occurs, such expenses  (including the reasonable charges and
expenses of its counsel) and the compensation for such services are intended to
constitute expenses of administration and shall be paid to the extent allowed
under any Bankruptcy Law.

 

The provisions
of this Section shall survive the termination of this Indenture, any
rejection or termination of this Indenture under any Bankruptcy Law or the
resignation or removal of the Trustee.

 

Section 7.08                                Replacement
of Trustee.

 

The Trustee
may resign by so notifying the Company in writing at least 30 days in
advance.  The Holders of a majority in
principal amount of the outstanding Notes may remove the Trustee by so
notifying the Company and the Trustee and may appoint a successor Trustee with
the Company’s consent.  A resignation or
removal of the Trustee and appointment of a successor Trustee shall become
effective only with the successor Trustee’s acceptance of appointment as
provided in this Section.  The Company
may remove the Trustee if:

 

(1)                                  the Trustee fails to comply with
Section 7.10;

 

(2)                                  the Trustee is adjudged bankrupt
or insolvent or an order for relief is entered with respect to the Trustee
under any Bankruptcy Law;

 

(3)                                  a receiver or other public
officer takes charge of the Trustee or its property; or

 

(4)                                  the Trustee becomes incapable of
acting.

 

78

 

If the Trustee
resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall notify each Holder of such event and shall promptly
appoint a successor Trustee.  Within one
year after the successor Trustee takes office, the Holders of a majority in
principal amount of the Notes may appoint a successor Trustee to replace the
successor Trustee appointed by the Company.

 

A successor
Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company.  Promptly
after that, the retiring Trustee shall transfer all property held by it as
Trustee to the successor Trustee, subject to the lien provided in Section 7.07,
the resignation or removal of the retiring Trustee shall become effective, and
the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture.  A
successor Trustee shall mail notice of its succession to each Holder.

 

If a successor
Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of at least 10%
in aggregate principal amount of the outstanding Notes may petition any court
of competent jurisdiction for the appointment of a successor Trustee.

 

If the Trustee
fails to comply with Section 7.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

 

Notwithstanding
replacement of the Trustee pursuant to this Section 7.08, the Company’s
obligations under Section 7.07 shall continue for the benefit of the
retiring Trustee.

 

Section 7.09                                Successor
Trustee by Merger, Etc.

 

If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the resulting,
surviving or transferee corporation without any further act shall, if such
resulting, surviving or transferee corporation is otherwise eligible hereunder,
be the successor Trustee; provided, however, that such
corporation shall be otherwise qualified and eligible under this Article Seven.

 

Section 7.10                                Eligibility;
Disqualification.

 

This Indenture
shall always have a Trustee who satisfies the requirement of TIA §§310(a)(1)
and 310(a)(2).  The Trustee (or in the
case of a corporation included in a bank holding company system, the related
bank holding company) shall have a combined capital and surplus of at least
$100,000,000 as set forth in its most recent published annual report of
condition.  In addition, if the Trustee
is a corporation included in a bank holding company system, the Trustee,
independently of such bank holding company, shall meet the capital requirements
of TIA §310(a)(2).  The Trustee shall
comply with TIA §310(b); provided, however, that there shall be
excluded from the operation of TIA §310(b)(1) any indenture or indentures under
which other notes, or certificates of interest or participation in other notes,
of the Company are outstanding, if

 

79

 

the requirements for such exclusion set forth in TIA §310(b)(1) are
met.  The provisions of TIA §310 shall
apply to the Company and any other obligor of the Notes.

 

Section 7.11                                Preferential
Collection of Claims Against the Company.

 

The Trustee
shall comply with TIA §311(a), excluding any creditor relationship listed in
TIA §311(b).  A Trustee who has resigned
or been removed shall be subject to TIA §311(a) to the extent indicated
therein.  The provisions of TIA §311
shall apply to the Company and any other obligor of the Notes.

 

80

 

ARTICLE VIII

 

DISCHARGE OF INDENTURE; DEFEASANCE

 

Section 8.01                                Termination
of the Company’s Obligations

 

As to either
series of Notes this Indenture will be Discharged and will cease to be of further
effect and the obligations of the Company and the Guarantors under the Notes of
such series and the Guarantees and this Indenture shall terminate with respect
to such series (except that the obligations under Sections 2.03 through 2.07,
7.01, 7.02, 7.07 and 7.08 and the rights, powers, trusts, duties and immunities
of the Trustee hereunder shall survive the effect of this Article Eight)
when (a) either (i) all existing Notes with respect to such series, theretofore
authenticated and delivered (except lost, stolen or destroyed Notes which have
been replaced or paid and Notes for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust) have been
delivered to the Trustee for cancellation or (ii) all Notes of such series not
theretofore delivered to the Trustee for cancellation have become due and
payable or will become due and payable within one year (including by way of
irrevocable instructions delivered by the Company to the Trustee to effect the
redemption of the Notes), and the Company has irrevocably deposited or caused
to be deposited with the Trustee as trust funds in trust solely for the benefit
of the Holders of such Notes, cash in U.S. dollars, U.S. Government Obligations
in the case of Dollar Notes and/or euros or Euro Obligations in the case of
Euro Notes or a combination thereof, in amounts as will be sufficient without
consideration of any reinvestment of interest to pay and discharge the entire
Indebtedness on the Notes not theretofore delivered to the Trustee for
cancellation, for principal of, premium, if any, and interest on the Notes to
the date of deposit together with irrevocable instructions from the Company
directing the Trustee to apply such Funds to the payment thereof at maturity or
redemption, as the case may be; (b) the Company has paid all other sums payable
under this Indenture by the Company with respect to the Notes of such series;
and (c) the Company has delivered to the Trustee an Officers’ Certificate and
an Opinion of Counsel stating that all conditions precedent under this
Indenture relating to the satisfaction and discharge of this Indenture with
respect to the Notes of such series have been complied with.  All funds that remain unclaimed for one year
will be paid to the Company and thereafter Holders must look to the Company for
payment as general creditors.

 

In addition,
at the Company’s option, either (a) the Company shall be deemed to have been
Discharged from any and all obligations with respect to the Notes and the
Guarantees (“Legal Defeasance”) after the applicable conditions set forth below
have been satisfied (except for the obligations of the Company under Sections
2.03, 2.04, 2.06, 2.07, 7.01, 7.02, 7.07 and this Section 8.01) or (b) the
Company and its Restricted Subsidiaries shall cease to be under any obligation
to comply with any term, provision or condition set forth in Sections 4.03,
4.09 and 4.11 through 4.21 and Section 5.01 and thereafter any omission to
comply with such obligations shall not constitute a Default or Event of Default
with respect to the Notes (“Covenant Defeasance”) after the applicable
conditions set forth below have been satisfied:

 

81

 

(1)                                  the Company must irrevocably
deposit with the Trustee in trust, for the benefit of the Holders (i) with
respect to Dollar Notes, cash in U.S. Dollars or non-callable U.S. government
obligations and (ii) with respect to Euro Notes, euros or Euro Obligations, in
such amounts as will be sufficient, in the opinion of a nationally recognized
firm of independent public accountants, to pay the principal of, premium, if
any, and interest on the Notes on the stated date for payment thereof or on an
applicable redemption date;

 

(2)                                  in the case of Legal Defeasance,
the Company shall have delivered to the Trustee an Opinion of Counsel in the
United States of America reasonably acceptable to the Trustee confirming that

 

(i)                                     the Company has received from,
or there has been published by, the Internal Revenue Service a ruling, or

 

(ii)                                  since the Issue Date, there has
been a change in the applicable United States federal income tax law,

 

in either case, to the effect that, and based thereon such Opinion of
Counsel shall confirm that, the Holders of the outstanding Notes will not
recognize income, gain or loss for United States federal income tax purposes as
a result of such Legal Defeasance and will be subject to United States federal
income tax on the same amounts, in the same manner and at the same times as
would have been the case if such Legal Defeasance had not occurred; provided,
however, such Opinion of Counsel shall not be required if all the Notes will
become due and payable on the Maturity Date within one year or are to be called
for redemption within one year under arrangements satisfactory to the Trustee;

 

(3)                                  in the case of Covenant
Defeasance, the Company shall have delivered to the Trustee an Opinion of
Counsel in the United States of America reasonably acceptable to the Trustee
confirming that the Holders of the outstanding Notes will not recognize income,
gain or loss for United States federal income tax purposes as a result of such
Covenant Defeasance and will be subject to United States federal income tax on
the same amounts, in the same manner and at the same times as would have been
the case if such Covenant Defeasance had not occurred;

 

(4)                                  no Event of Default or Default
shall have occurred and be continuing on the date of such deposit (other than
any Default arising from the substantially contemporaneous incurrence of
Indebtedness to fund the deposit described above in clause (1)) or insofar as
Events of Default of the type described in Section 6.01(6) or (7) are
concerned, at any time in the period ending on the 91st day after the date of
deposit;

 

(5)                                  such Legal Defeasance or
Covenant Defeasance shall not result in a breach or violation of, or constitute
a default under this Indenture (other than any Default arising from the
substantially contemporaneous incurrence of

 

82

 

Indebtedness to fund the deposit described
above in clause (1)) or any other material agreement or instrument to which the
Company or any of its Subsidiaries is a party or by which the Company or any of
its Subsidiaries is bound;

 

(6)                                  the Company shall have delivered
to the Trustee an Officers’ Certificate stating that the deposit was not made
by the Company with the intent of preferring the Holders of the Notes over any
other creditors of the Company or with the intent of defeating, hindering,
delaying or defrauding any other creditors of the Company or others;

 

(7)                                  the Company shall have delivered
to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that all conditions precedent provided for or relating to the Legal Defeasance
or the Covenant Defeasance have been complied with; and

 

(8)                                  the Company shall have delivered
to the Trustee an Opinion of Counsel, to the effect that (A) either (i) the
Company has assigned all its ownership interest in the trust funds to the
Trustee or (ii) the Trustee has a valid perfected security interest in the
trust funds and (B) assuming no intervening bankruptcy of the Company between
the date of the deposit and the 124th day following the perfection of a
security interest in the deposit and that no Holder is an insider of the
Company, after the 124th day following the perfection of a security
interest in the deposit, the trust funds will not be subject to avoidance as a
preference under Section 547 of the U.S. Federal Bankruptcy Code.

 

Section 8.02                                Acknowledgment
of Discharge by Trustee.

 

Subject to Section 8.05,
after (i) the conditions of Section 8.01, have been satisfied and (ii) the
Company has delivered to the Trustee an Opinion of Counsel, stating that all
conditions precedent referred to in clause (i) above relating to the
satisfaction and discharge of this Indenture have been complied with, the
Trustee upon written request of the Company shall acknowledge in writing the
discharge of the Company’s obligations under this Indenture except for those
surviving obligations specified in this Article Eight.

 

Section 8.03                                Application
of Trust Money.

 

The Trustee
shall hold in trust Funds deposited with it pursuant to Section 8.01.  It shall apply the Funds through the Paying
Agent and in accordance with this Indenture to the payment of all the principal
of, or premium, if any, and interest on the Notes.

 

Section 8.04                                Repayment
to the Company.

 

The Trustee
and the Paying Agent shall promptly pay to the Company any Funds held by them
for the payment of all the principal of, or premium, if any, and interest that
remains unclaimed for one year; provided, however, that the
Trustee or such Paying Agent may, at the expense of the Company, cause to be
published once in a newspaper of general circulation in the City of New York or
mailed to each Holder,

 

83

 

notice that such Funds remain unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
publication or mailing, any unclaimed balance of such Funds then remaining will
be repaid to the Company.  After payment
to the Company, Holders entitled to the Funds must look to the Company for payment
as general unsecured creditors unless an applicable abandoned property law
designates another Person and all liability of the Trustee and Paying Agent
with respect to such Funds shall cease.

 

Section 8.05                                Reinstatement.

 

If the Trustee
or Paying Agent is unable to apply any Funds by reason of any legal proceeding
or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s
obligations under this Indenture and the Notes shall be revived and reinstated
as though no deposit had occurred pursuant to Section 8.01 until such time
as the Trustee or Paying Agent is permitted to apply all such Funds in
accordance with Section 8.01; provided, however, that if the
Company has made any payment of principal, or premium, if any, and interest on
any Notes because of the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Notes to receive such payment
from Funds held by the Trustee or Paying Agent.

 

ARTICLE IX

 

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

Section 9.01                                Without
Consent of Holders.

 

The Company,
when authorized by a Board Resolution, the Guarantors and the Trustee,
together, may amend or supplement this Indenture, the Notes or the Guarantees
without the consent of any Holders to:

 

(1)                                  to cure any ambiguity, defect or
inconsistency;

 

(2)                                  provide for the assumption of
the Company’s obligations to Holders of Notes in the case of a merger or
consolidation or sale of all or substantially all of the Company’s assets;

 

(3)                                  provide for uncertificated Notes
in addition to or in place of certificated Notes;

 

(4)                                  to add any person as a Guarantor
of the Notes or secure the Notes or the Guarantees;

 

(5)                                  to comply with requirements of
the Commission in order to effect or maintain the qualification of this
Indenture under the TIA; or

 

(6)                                  to make any change that would
provide any additional benefit or rights to the Holders or that does not
adversely affect in any material respect

 

84

 

the legal rights of any Noteholders hereunder;
provided, however, that the Company has delivered to the Trustee
an Opinion of Counsel and an Officers’ Certificate, each stating that such
amendment or supplement complies with the provisions of this Section 9.01.

 

Section 9.02                                With
Consent of Holders.

 

Subject to Section 6.07,
the Company, when authorized by a Board Resolution, the Guarantors and the
Trustee, together, with the written consent (including any electronic
communication thereof by a Depositary) of the Holder or Holders of at least a
majority in principal amount of the then outstanding Notes (including the
aggregate principal amount of any Additional Notes subsequently issued under
this Indenture) may make all other modifications, waivers and amendments of
this Indenture, the Notes or the Guarantees, except that, without the consent
of each Holder of Notes affected thereby, no amendment and waiver may, directly
or indirectly:

 

(1)                                  reduce the amount of Notes whose
Holders must consent to an amendment;

 

(2)                                  reduce the rate of or change the
time for payment of interest, including defaulted interest, on any Notes;

 

(3)                                  reduce the principal of or
change the fixed maturity of any Notes, or change the date on which any Notes
may be subject to redemption or repurchase, or reduce the redemption or
repurchase price thereof for the Notes;

 

(4)                                  make any Notes payable in money
other than that stated in the Notes and this Indenture;

 

(5)                                  make any change in provisions of
this Indenture or the Notes relating to the rights of Holders of Notes to
receive payment of principal of and interest on such Notes on or after the due
date thereof or to bring suit to enforce such payment or permitting Holders of
a majority in principal amount of the Notes to waive Defaults or Events of
Default;

 

(6)                                  amend, change or modify any
provision of this Indenture that would amend, change or modify in any material
respect the obligation of the Company to make and complete a Change of Control
Offer in the event of a Change of Control that has occurred or make and
complete a Net Proceeds Offer with respect to any Asset Sale that has been
consummated;

 

(7)                                  modify or change any provision
of this Indenture or the related definitions affecting the subordination or
ranking of the Notes or any Guarantee in a manner which adversely affects the
Holders; or

 

(8)                                  release any Guarantor from any
of its obligations under its Guarantee or this Indenture otherwise than in
accordance with the terms of this Indenture.

 

85

 

Notwithstanding
any provision to the contrary, if any amendment, waiver or other modification
will only effect the Dollar Notes or the Euro Notes, only the consent of the
holders of at least a majority in principal amount of the Dollar Notes or the
Euro Notes, as the case may be, shall be required.

 

It shall not
be necessary for the consent of the Holders under this Section 9.02 to
approve the particular form of any proposed amendment, supplement or waiver,
but it shall be sufficient if such consent approves the substance thereof.

 

After an
amendment, supplement or waiver under this Section 9.02 becomes effective
(as provided in Section 9.04), the Company shall mail to the Holders
affected thereby a notice briefly describing the amendment, supplement or
waiver.  Any failure of the Company to
mail such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such supplemental indenture.

 

Section 9.03                                Compliance
with TIA.

 

Every
amendment, waiver or supplement of this Indenture or the Notes shall comply
with the TIA as then in effect.

 

Section 9.04                                Revocation
and Effect of Consents.

 

Until an
amendment, waiver or supplement becomes effective, a consent to it by a Holder
is a continuing consent by the Holder and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note,
even if notation of the consent is not made on any Note.  Subject to the following paragraph, any such
Holder or subsequent Holder may revoke the consent as to his Note or portion of
his Note by notice to the Trustee or the Company received before the date on
which the Trustee receives an Officers’ Certificate certifying that the Holders
of the requisite principal amount of Notes have consented (and not theretofore
revoked such consent) to the amendment, supplement or waiver (at which time
such amendment, supplement or waiver shall become effective).

 

The Company
may, but shall not be obligated to, fix such record date as it may select for
the purpose of determining the Holders entitled to consent to any amendment,
supplement or waiver.  If a record date
is fixed, then notwithstanding the last sentence of the immediately preceding
paragraph, those Persons who were Holders at such record date (or their duly
designated proxies), and only those Persons, shall be entitled to revoke any
consent previously given, whether or not such Persons continue to be Holders
after such record date.  No such consent
shall be valid or effective for more than 120 days after such record date.

 

After an
amendment, supplement or waiver becomes effective, it shall bind every Holder,
unless it makes a change described in any of clauses (1) through (8) of Section 9.02,
in which case, the amendment, supplement or waiver shall bind only each Holder
of a Note who has consented to it and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as a consenting Holder’s Note; provided,
however, that any such waiver shall not impair or affect the right of
any Holder to receive

 

86

 

payment of principal of and interest on a Note, on or after the
respective due dates expressed in such Note, or to bring suit for the enforcement
of any such payment on or after such respective dates without the consent of
such Holder.

 

Section 9.05                                Notation
on or Exchange of Notes.

 

If an
amendment, supplement or waiver changes the terms of a Note, the Trustee may
require the Holder of the Note to deliver it to the Trustee.  The Trustee may place an appropriate notation
on the Note about the changed terms and return it to the Holder.  Alternatively, if the Company or the Trustee
so determines, the Company in exchange for the Note shall issue and the Trustee
shall authenticate a new Note that reflects the changed terms.

 

Section 9.06                                Trustee
To Sign Amendments, Etc.

 

The Trustee
shall execute any amendment, supplement or waiver authorized pursuant to and
adopted in accordance with this Article Nine; provided, however,
that the Trustee may, but shall not be obligated to, execute any such
amendment, supplement or waiver which affects the Trustee’s own rights, duties
or immunities under this Indenture.  The
Trustee shall be entitled to receive, and shall be fully protected in relying
upon, an Opinion of Counsel and an Officers’ Certificate each stating that the
execution of any amendment, supplement or waiver authorized pursuant to this Article Nine
is authorized or permitted by this Indenture.  Such Opinion of Counsel shall not be an
expense of the Trustee.

 

ARTICLE X

 

SUBORDINATION OF NOTES

 

Section 10.01                          Notes
Subordinated to Senior Debt.

 

Anything
herein to the contrary notwithstanding, the Company, for itself and its
successors, and each Holder, by his or her acceptance of Notes, agrees that the
payment of all Obligations owing to the Holders in respect of the Notes is
subordinated, to the extent and in the manner provided in this Article Ten,
in right of payment to the prior payment in full in cash, Cash Equivalents or
Foreign Cash Equivalents, or such payment duly provided for to the satisfaction
of the holders of Senior Debt, of all Obligations on Senior Debt, including
without limitation, the Company’s obligations under the Credit Facilities.

 

This Article Ten
shall constitute a continuing offer to all Persons who become holders of, or
continue to hold, Senior Debt, and such provisions are made for the benefit of
the holders of Senior Debt and such holders are made obligees hereunder and any
one or more of them may enforce such provisions.

 

87

 

Section 10.02                          Suspension
of Payment When Senior Debt Is in Default.

 

(a)                                  Unless Section 10.03 shall
be applicable, upon (1) the occurrence and continuance of any default in the
payment when due, whether at maturity, upon any redemption, by declaration or
otherwise, of any principal of, interest on, unpaid drawings for letters of
credit issued in respect of, or regularly accruing fees with respect to, any Senior
Debt (a “Payment Default”) and (2) receipt by the Trustee and the Company from
a Representative of written notice of such occurrence, then no payment (other
than payments previously made pursuant to Article Eight) or distribution
of any assets of the Company of any kind or character shall be made by or on
behalf of the Company or any other Person on its or their behalf on account of
any Obligations under the Notes or on account of the purchase, redemption or
other acquisition of Notes for cash or property or otherwise (except that
Holders may receive (i) Permitted Junior Securities and (ii) payments made from
the trusts described in Section 8.01) and until such Payment Default shall
have been cured or waived or shall have ceased to exist or such Senior Debt as
to which such Payment Default relates shall have been discharged or paid in
full in cash, Cash Equivalents or Foreign Cash Equivalents, or such payment
duly provided for to the satisfaction of the holders of Senior Debt, after
which the Company shall resume making any and all required payments in respect
of the Notes, including any missed payments.

 

(b)                                 Unless Section 10.03 shall
be applicable, upon (1) the occurrence and continuance of any event of default
(other than a Payment Default) with respect to any Designated Senior Debt (as
such event of default is defined in the instrument creating or evidencing such
Designated Senior Debt) permitting the holders of such Designated Senior Debt
then outstanding to accelerate the maturity thereof (a “Non-payment Default”)
and (2) the earlier of (i) receipt by the Trustee and the Company from a
Representative of written notice of such occurrence stating that such notice is
a “Payment Blockage Notice” pursuant to this Section 10.02 or (ii) if such
Non-payment Default results from the acceleration of the Notes, the date of
such acceleration, no payment (other than payments previously made pursuant to Article Eight)
or distribution of any assets of the Company of any kind or character shall be
made by or on behalf of the Company or any other Person on its or their behalf
on account of any Obligations under the Notes or on account of the purchase or
redemption or other acquisition of Notes for cash or property or otherwise
(except that Holders may receive (i) Permitted Junior Securities and (ii)
payments made from the trusts described in Section 8.01) for a period (the
“Payment Blockage Period”) commencing on the date of receipt by the Trustee of
the written notice of a Non- payment Default from such Representative or the
date of the acceleration referred to in clause (ii) above, as the case may be,
unless and until the earlier to occur of the following events: (w) 180 days
shall have elapsed since receipt of such notice or the date of the acceleration
of the Notes, as the case may be (provided no Designated Senior Debt shall
theretofore have been accelerated), (x) such Non-payment Default shall have
been cured or waived or shall have ceased to exist, (y) such Designated Senior
Debt shall have been discharged or paid in full in cash, Cash Equivalents or
Foreign Cash Equivalents, or such payment duly provided for to the satisfaction
of the holders of such Designated Senior Debt, or (z) such Payment Blockage
Period shall have been terminated by written notice to the Company or the
Trustee from the Representative initiating such Payment Blockage Period or the
holders of at least a

 

88

 

majority in principal
amount of such issue of Designated Senior Debt initiating such Payment Blockage
Period, after which, in the case of clause (w), (x), (y) or (z), the Company
shall resume making any and all required payments in respect of the Notes,
including any missed payments. 
Notwithstanding anything herein to the contrary, (x) in no event will a
Payment Blockage Period or successive Payment Blockage Periods with respect to
the same payment on the Notes extend beyond 180 days from the date the payment
on the Notes was due and (y) only one such Payment Blockage Period may be
commenced within any 360 consecutive days. 
For all purposes of this Section 10.02(b), no event of default
which existed or was continuing on the date of the commencement of any Payment
Blockage Period with respect to the Designated Senior Debt of the Company
initiating such Payment Blockage Period shall be, or be made, the basis for the
commencement of a second Payment Blockage Period by the holders or by the
Representative of such Designated Senior Debt whether or not within a period of
360 consecutive days, unless such event of default shall have been cured or
waived for a period of not less than 90 consecutive days (it being acknowledged
that any subsequent action, or any breach of any financial covenants for a
period commencing after the date of commencement of such Payment Blockage
Period that, in either case, would give rise to an event of default pursuant to
any provisions under which an event of default previously existed or was
continuing shall constitute a new event of default for this purpose).

 

(c)                                  In the event that,
notwithstanding the foregoing, the Company shall have made payment to the
Trustee or directly to the Holder of any Note prohibited by the foregoing
provisions of this Section 10.02, then and in such event such payment
shall be segregated from other funds and held in trust by the Trustee or such
Holder or Paying Agent for the benefit of, and shall immediately be paid over
to, the holders of Senior Debt or to the Representatives or as a court of
competent jurisdiction shall direct.

 

Section 10.03                          Notes
Subordinated to Prior Payment of All Senior Debt on Dissolution, Liquidation or
Reorganization of Company.

 

Upon any
payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to creditors upon any liquidation,
dissolution, winding-up, reorganization, assignment for the benefit of
creditors or marshaling of assets of the Company or in a bankruptcy,
reorganization, insolvency, receivership or other similar proceeding relating
to the Company or its property, whether voluntary or involuntary:

 

(a)                                  the holders of all Senior Debt
shall first be entitled to receive payments in full in cash, Cash Equivalents
or Foreign Cash Equivalents, or such payment duly provided for to the
satisfaction of the holders of Senior Debt, of all amounts payable under Senior
Debt before the Holders will be entitled to receive any payment or distribution
of any kind or character is made on account of any Obligations on the Notes or
for the acquisition of any of the Notes for cash or property or otherwise, and
until all Obligations with respect to the Senior Debt are paid in full in cash,
Cash Equivalents or Foreign Cash Equivalents, or such payment provided for to
the satisfaction of the holders

 

89

 

of Senior Debt, any
distribution to which the Holders would be entitled shall be made to the
holders of Senior Debt;

 

(b)                                 any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities, to which the Holders or the Trustee on behalf of the Holders would
be entitled except for the provisions of this Article Ten, shall be paid
by the liquidating trustee or agent or other Person making such a payment or
distribution, directly to the holders of Senior Debt or their representatives,
ratably according to the respective amounts of Senior Debt remaining unpaid
held or represented by each, until all Senior Debt remaining unpaid shall have
been paid in full in cash, Cash Equivalents or Foreign Cash Equivalents, or
such payment duly provided for to the satisfaction of the holders of Senior
Debt, after giving effect to any concurrent payment or distribution to the
holders of such Senior Debt; and

 

(c)                                  in the event that,
notwithstanding the foregoing, any payment or distribution of assets of the
Company of any kind or character, whether such payment shall be in cash,
property or securities, and the Company shall have made payment to the Trustee
or directly to the Holders or any Paying Agent on account of any Obligations
under the Notes before all Senior Debt is paid in full in cash, Cash
Equivalents or Foreign Cash Equivalents, or such payment duly provided for to
the satisfaction of the holders of Senior Debt, such payment or distribution
(subject to the provisions of Sections 10.06 and 10.07) shall be received,
segregated from other funds, and held in trust by the Trustee or such Holder or
Paying Agent for the benefit of, and shall immediately be paid over by the
Trustee (if the notice required by Section 10.06 has been received by the
Trustee) or by the Holder to, the holders of Senior Debt or their
representatives, ratably according to the respective amounts of Senior Debt
held or represented by each, until all Senior Debt remaining unpaid shall have
been paid in full in cash, Cash Equivalents or Foreign Cash Equivalents, or
such payment duly provided for to the satisfaction of the holders of Senior
Debt, after giving effect to any concurrent payment or distribution to or for
the holders of Senior Debt.

 

(d)                                 The consolidation of the Company
with, or the merger of the Company with or into, another Person or the
liquidation or dissolution of the Company following the conveyance, transfer or
lease of its properties and assets substantially as an entirety to another
Person upon the terms and conditions set forth in Article Five shall not
be deemed a liquidation, dissolution, winding-up, reorganization, assignment
for the benefit of creditors or marshaling of assets of the Company, as the
case may be, for the purposes of this Article Ten; provided, however,
that the Person formed by such consolidation or the surviving entity of such
merger or the Person which acquires by conveyance, transfer or lease such
properties and assets substantially as an entirety, as the case may be, shall,
as a part of such consolidation, merger, conveyance, transfer or lease, comply
with the conditions set forth in such Article Five. The Company shall give
prompt notice to the Trustee prior to any liquidation, dissolution, winding-up,
reorganization, assignment for the benefit of creditors or marshaling of
assets.

 

90

 

Section 10.04                          Holders
To Be Subrogated to Rights of Holders of Senior Debt.

 

Subject to the
payment in full in cash, Cash Equivalents or Foreign Cash Equivalents, or such
payment duly provided for to the satisfaction of the holders of Senior Debt, of
all Senior Debt, the Holders of Notes shall be subrogated to the rights of the
holders of Senior Debt to receive payments or distributions of assets of the
Company applicable to the Senior Debt until all amounts owing on the Notes
shall be paid in full in cash, Cash Equivalents or Foreign Cash Equivalents,
and for the purpose of such subrogation no payments or distributions to the
holders of Senior Debt by or on behalf of the Company, or by or on behalf of
the Holders by virtue of this Article Ten, which otherwise would have been
made to the Holders shall, as between the Company and the Holders, be deemed to
be payment by the Company to or on account of the Senior Debt, it being
understood that the provisions of this Article Ten are and are intended
solely for the purpose of defining the relative rights of the Holders, on the
one hand, and the holders of Senior Debt, on the other hand.

 

If any payment
or distribution to which the Holders would otherwise have been entitled but for
the provisions of this Article Ten shall have been applied, pursuant to
the provisions of this Article Ten, to the payment of all amounts payable
under the Senior Debt, then the Holders shall be entitled to receive from the
holders of such Senior Debt any such payments or distributions received by such
holders of Senior Debt in excess of the amount sufficient to pay all amounts
payable under or in respect of the Senior Debt in full in cash , Cash
Equivalents or Foreign Cash Equivalents, or such payment duly provided for to
the satisfaction of the holders of Senior Debt.

 

Each Holder by
purchasing or accepting a Note waives any and all notice of the creation,
modification, renewal, extension or accrual of any Senior Debt of the Company
and notice of or proof of reliance by any holder or owner of Senior Debt of the
Company upon this Article Ten and the Senior Debt of the Company shall
conclusively be deemed to have been created, contracted or incurred in reliance
upon this Article Ten, and all dealings between the Company and the
holders and owners of the Senior Debt of the Company shall be deemed to have
been consummated in reliance upon this Article Ten.

 

Section 10.05                          Obligations
of the Company Unconditional.

 

Nothing
contained in this Article Ten or elsewhere in this Indenture or in the
Notes is intended to or shall impair, as between the Company and the Holders,
the obligation of the Company, which is absolute and unconditional, to pay to
the Holders the principal of and interest on the Notes as and when the same
shall become due and payable in accordance with their terms, or is intended to
or shall affect the relative rights of the Holders and creditors of the Company
other than the holders of the Senior Debt, nor shall anything herein or therein
prevent the Trustee or any Holder from exercising all remedies otherwise
permitted by applicable law upon default under this Indenture, subject to the
rights, if any, under this Article Ten, of the holders of Senior Debt in
respect of cash, property or Notes of the Company received upon the exercise of
any such

 

91

 

remedy.  Upon any payment or
distribution of assets or securities of the Company referred to in this Article Ten,
the Trustee, subject to the provisions of Sections 7.01 and 7.02, and the
Holders shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction in which any liquidation, dissolution, winding-up or
reorganization proceedings are pending, or a certificate of the receiver,
trustee in bankruptcy, liquidating trustee or agent or other Person making any
payment or distribution to the Trustee or to the Holders for the purpose of
ascertaining the Persons entitled to participate in such payment or
distribution, the holders of Senior Debt and other Indebtedness of the Company,
the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article Ten.  Nothing in this Article Ten shall apply
to the claims of, or payments to, the Trustee under or pursuant to Section 7.07.  The Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself or itself
to be a holder of any Senior Debt (or a trustee on behalf of, or other
representative of, such holder) to establish that such notice has been given by
a holder of such Senior Debt or a trustee or representative on behalf of any
such holder.

 

In the event
that the Trustee determines in good faith that any evidence is required with
respect to the right of any Person as a holder of Senior Debt to participate in
any payment or distribution pursuant to this Article Ten, the Trustee may
request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Debt held by such Person, the extent to
which such Person is entitled to participate in such payment or distribution
and any other facts pertinent to the rights of such Person under this Article Ten,
and if such evidence is not furnished, the Trustee may defer any payment to
such Person pending judicial determination as to the right of such Person to
receive such payment.

 

Section 10.06                          Trustee
Entitled To Assume Payments Not Prohibited in Absence of Notice.

 

The Trustee
shall not at any time be charged with knowledge of the existence of any facts
that would prohibit the making of any payment to or by the Trustee unless and
until the Trustee or any Paying Agent shall have received written notice
thereof from the Company or from one or more holders of Senior Debt or from any
Representative therefor and, prior to the receipt of any such notice, the
Trustee, subject to the provisions of Sections 7.01 and 7.02, shall be entitled
in all respects conclusively to assume that no such fact exists.

 

Section 10.07                          Application
by Trustee of Assets Deposited with It.

 

U.S. Legal
Tender, U.S. Government Obligations, Euros or Euro Obligations deposited in
trust with the Trustee pursuant to and in accordance with Section 8.01 and
8.02 shall be for the sole benefit of the Holders of the Notes and, to the
extent allocated for the payment of Notes, shall not be subject to the
subordination provisions of this Article Ten.  Otherwise, any deposit of assets or
securities by or on behalf of the Company with the Trustee or any Paying Agent
(whether or not in trust) for the payment of principal of or interest on any
Notes shall be subject to the provisions of

 

92

 

this Article Ten; provided, however, that if prior
to the second Business Day preceding the date on which by the terms of this
Indenture any such assets may become distributable for any purpose (including,
without limitation, the payment of either principal of or interest on any Note)
the Trustee or such Paying Agent shall not have received with respect to such
assets the notice provided for in Section 10.06, then the Trustee or such
Paying Agent shall have full power and authority to receive such assets and to
apply the same to the purpose for which they were received, and shall not be
affected by any notice to the contrary received by it on or after such
date.  The foregoing shall not apply to
the Paying Agent if the Company or any Subsidiary or Affiliate of the Company
is acting as Paying Agent.  Nothing
contained in this Section 10.07 shall limit the right of the holders of
Senior Debt to recover payments as contemplated by this Article Ten.

 

Section 10.08                          No
Waiver of Subordination Provisions.

 

(a)                                  No right of any present or
future holder of any Senior Debt to enforce subordination as herein provided
shall at any time in any way be prejudiced or impaired by any act or failure to
act on the part of the Company or by any act or failure to act by any such
holder, or by any non-compliance by the Company with the terms, provisions and
covenants of this Indenture, regardless of any knowledge thereof any such
holder may have or be otherwise charged with.

 

(b)                                 Without limiting the generality
of subsection (a) of this Section 10.08, the holders of Senior Debt
may, at any time and from time to time, without the consent of or notice to the
Trustee or the Holders of the Notes, without incurring responsibility to the
Holders of the Notes and without impairing or releasing the subordination
provided in this Article Ten or the obligations hereunder of the Holders
of the Notes to the holders of Senior Debt, do any one or more of the
following: (1) change the manner, place, terms or time of payment of, or renew
or alter, Senior Debt or any instrument evidencing the same or any agreement
under which Senior Debt is outstanding; (2) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing
Senior Debt; (3) release any Person liable in any manner for the collection or
payment of Senior Debt; and (4) exercise or refrain from exercising any rights
against the Company and any other Person.

 

Section 10.09                          Holders
Authorize Trustee To Effectuate Subordination of Notes.

 

Each Holder of
the Notes by such Holder’s acceptance thereof authorizes and expressly directs
the Trustee on his behalf to take such action as may be necessary or
appropriate to effect the subordination provisions contained in this Article Ten,
and appoints the Trustee such Holder’s attorney- in-fact for such purpose,
including, in the event of any liquidation, dissolution, winding-up,
reorganization, assignment for the benefit of creditors or marshaling of assets
of the Company tending towards liquidation or reorganization of the business
and assets of the Company, the immediate filing of a claim for the unpaid
balance of such Holder’s Notes in the form required in said proceedings and
cause said claim to be approved.  If the Trustee
does not file a proper

 

93

 

claim or proof of debt in the form required in such proceeding prior to
30 days before the expiration of the time to file such claim or claims, then
any of the holders of the Senior Debt or their Representative is hereby
authorized to file an appropriate claim for and on behalf of the Holders of
said Notes.  Nothing herein contained
shall be deemed to authorize the Trustee or the holders of Senior Debt or their
Representative to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder thereof, or to authorize the
Trustee or the holders of Senior Debt or their Representative to vote in
respect of the claim of any Holder in any such proceeding.

 

Section 10.10                          Right
of Trustee To Hold Senior Debt.

 

The Trustee
shall be entitled to all of the rights set forth in this Article Ten in
respect of any Senior Debt at any time held by it to the same extent as any
other holder of Senior Debt, and nothing in this Indenture shall be construed
to deprive the Trustee of any of its rights as such holder.

 

Section 10.11                          No
Suspension of Remedies.

 

The failure to
make a payment on account of principal of or interest on the Notes by reason of
any provision of this Article Ten shall not be construed as preventing the
occurrence of a Default or an Event of Default under Section 6.01.

 

Nothing
contained in this Article Ten shall limit the right of the Trustee or the
Holders of Notes to take any action to accelerate the maturity of the Notes
pursuant to Article Six or to pursue any rights or remedies hereunder or
under applicable law, subject to the rights, if any, under this Article Ten
of the holders, from time to time, of Senior Debt.

 

Section 10.12                          No
Fiduciary Duty of Trustee to Holders of Senior Debt.

 

The Trustee
shall not be deemed to owe any fiduciary duty to the holders of Senior Debt,
and it undertakes to perform or observe such of its covenants and obligations
as are specifically set forth in this Article Ten, and no implied
covenants or obligations with respect to the Senior Debt shall be read into
this Indenture against the Trustee.  The
Trustee shall not be liable to any such holders (other than for its willful
misconduct or gross negligence) if it shall pay over or deliver to the Holders
of Notes or the Company or any other Person, money or assets in compliance with
the terms of this Indenture.  Nothing in
this Section 10.12 shall affect the obligation of any Person other than
the Trustee to hold such payment for the benefit of, and to pay such payment
over to, the holders of Senior Debt or their Representative.

 

94

 

ARTICLE XI

 

GUARANTEE OF NOTES

 

Section 11.01                          Unconditional
Guarantee.

 

Subject to the
provisions of this Article Eleven, each of the Guarantors hereby, jointly
and severally, unconditionally and irrevocably guarantees, on a senior
subordinated basis (such guarantees to be referred to herein as the “Guarantee”)
to each Holder of a Note (including any Additional Notes upon issuance in
accordance with Section 2.18) authenticated and delivered by the Trustee
and to the Trustee and its successors and assigns, irrespective of the validity
and enforceability of this Indenture, the Notes or the obligations of the
Company or any other Guarantors to the Holders or the Trustee hereunder or
thereunder, that: (a) the principal of, premium, if any, and interest on the
Notes (and any Additional Interest payable thereon) shall be duly and
punctually paid in full when due, whether at maturity, upon redemption at the
option of Holders pursuant to the provisions of the Notes relating thereto, by
acceleration or otherwise, and interest on the overdue principal and (to the
extent permitted by law) interest, if any, on the Notes and all other
obligations of the Company or the Guarantors to the Holders or the Trustee
hereunder or thereunder (including amounts due the Trustee under Section 7.07
hereof) and all other obligations shall be promptly paid in full or performed,
all in accordance with the terms hereof and thereof; and (b) in case of any
extension of time of payment or renewal of any Notes or any of such other
obligations, the same shall be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at maturity, by
acceleration or otherwise.  Failing
payment when due of any amount so guaranteed, or failing performance of any
other obligation of the Company to the Holders under this Indenture or under
the Notes, for whatever reason, each Guarantor shall be obligated to pay, or to
perform or cause the performance of, the same immediately.  An Event of Default under this Indenture or the
Notes shall constitute an event of default under this Guarantee, and shall
entitle the Holders of Notes to accelerate the obligations of the Guarantors
hereunder in the same manner and to the same extent as the obligations of the
Company.

 

Each of the Guarantors
hereby agrees that its obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this
Indenture, the absence of any action to enforce the same, any waiver or consent
by any Holder of the Notes with respect to any provisions hereof or thereof,
any release of any other Guarantor, the recovery of any judgment against the
Company, any action to enforce the same, whether or not a Guarantee is affixed
to any particular Note, or any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a Guarantor.  Each of the Guarantors hereby waives the
benefit of diligence, presentment, demand of payment, filing of claims with a
court in the event of insolvency or bankruptcy of the Company, any right to
require a proceeding first against the Company, protest, notice and all demands
whatsoever and covenants that its Guarantee shall not be discharged except by
complete performance of the obligations contained in the Notes, this Indenture
and this Guarantee.  This Guarantee is a
guarantee of payment and not of collection. 
If any Holder or the Trustee is required by any court or otherwise

 

95

 

to return to the Company or to any Guarantor, or any custodian,
trustee, liquidator or other similar official acting in relation to the Company
or such Guarantor, any amount paid by the Company or such Guarantor to the
Trustee or such Holder, this Guarantee, to the extent theretofore discharged,
shall be reinstated in full force and effect. 
Each Guarantor further agrees that, as between it, on the one hand, and
the Holders of Notes and the Trustee, on the other hand, (a) subject to this Article Eleven,
the maturity of the obligations guaranteed hereby may be accelerated as
provided in Article Six hereof for the purposes of this Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (b) in the
event of any acceleration of such obligations as provided in Article Six
hereof, such obligations (whether or not due and payable) shall forthwith
become due and payable by the Guarantors for the purpose of this Guarantee.

 

No
stockholder, officer, director, employee or incorporator, past, present or
future, or any Guarantor, as such, shall have any personal liability under this
Guarantee by reason of his, her or its status as such stockholder, officer,
director, employee or incorporator.

 

Each Guarantor
that makes a payment or distribution under its Guarantee shall be entitled to a
contribution from each other Guarantor in an amount pro rata, based on the net
assets of each Guarantor, determined in accordance with GAAP.

 

Section 11.02                          Limitations
on Guarantees.

 

The
obligations of each Guarantor under its Guarantee are limited to the maximum
amount which, after giving effect to all other contingent and fixed liabilities
of such Guarantor and after giving effect to any collections from or payments
made by or on behalf of any other Guarantor in respect of the obligations of
such other Guarantor under its Guarantee or pursuant to its contribution
obligations under this Indenture, will result in the obligations of such
Guarantor under the Guarantee not constituting a fraudulent conveyance or
fraudulent transfer under applicable law.

 

Section 11.03                          Execution
and Delivery of Guarantee.

 

To further
evidence the Guarantee set forth in Section 11.01, each Guarantor hereby
agrees that a notation of such Guarantee, substantially in the form of Exhibit
E hereto, shall be endorsed on each Note authenticated and delivered by the
Trustee.  Such Guarantee shall be
executed on behalf of each Guarantor by either manual or facsimile signature of
a duly authorized Officer of each Guarantor. 
The validity and enforceability of any Guarantee shall not be affected
by the fact that it is not affixed to any particular Note.

 

Each of the
Guarantors hereby agrees that its Guarantee set forth in Section 11.01
shall remain in full force and effect notwithstanding any failure to endorse on
each Note a notation of such Guarantee.

 

If an Officer
of a Guarantor whose signature is on this Indenture or a Guarantee no longer
holds that office at the time the Trustee authenticates the Note on

 

96

 

which such Guarantee is endorsed or at any time thereafter, such
Guarantor’s Guarantee of such Note shall be valid nevertheless.

 

The delivery
of any Note by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of any Guarantee set forth in this Indenture on behalf
of each Guarantor.

 

Section 11.04                          Release
of a Guarantor.

 

(a)                                  If no Default or Event of
Default exists and is continuing, the obligations of any Guarantor under its
Guarantee of the Notes will be automatically and unconditionally released and
discharged when any of the following occurs:

 

(1)                                  a sale, exchange, transfer or
other disposition (including, without limitation, by way of merger,
consolidation or otherwise), directly or indirectly, of all of the Capital
Stock of such Guarantor to any Person that is not a Restricted Subsidiary of
the Company; provided that such sale, exchange, transfer or other disposition
is made in accordance with the provisions of the Indenture;

 

(2)                                  a sale, exchange, transfer or
other disposition (including, without limitation, by way of merger,
consolidation or otherwise), directly or indirectly, of Capital Stock of such
Guarantor to any Person that is not a Restricted Subsidiary of the Company, or
an issuance by such Guarantor of its Capital Stock, in each case as a result of
which such Guarantor ceases to be a majority-owned Subsidiary of the Company;
provided that such transaction is made in accordance with the provisions of the
Indenture;

 

(3)                                  such Guarantor is
unconditionally released and discharged from its liability with respect to
Indebtedness in connection with which such Guarantee was executed pursuant to
clause (1) of the covenant described under the Section 4.19 hereof;

 

(4)                                  the designation of such
Guarantor as an Unrestricted Subsidiary in accordance with the provisions of
the Indenture; or

 

(5)                                  the occurrence of Legal
Defeasance or Covenant Defeasance in accordance with the Indenture.

 

(b)                                 In connection with any
transaction set forth Section 11.04(a) above, the Trustee shall receive an
Officers’ Certificate and an Opinion of Counsel certifying as to the compliance
with this Section 11.04; provided, however, that the legal
counsel delivering such Opinion of Counsel may rely as to matters of fact on
one or more Officers’ Certificates of the Company.

 

The Trustee
shall execute any documents reasonably requested by the Company or a Guarantor
in order to evidence the release of such Guarantor from its obligations under
its Guarantee endorsed on the Notes and under this Article Eleven.

 

97

Section 11.05                          Waiver
of Subrogation.

 

Until this Indenture is discharged and all of the Notes are discharged
and paid in full, each Guarantor hereby irrevocably waives and agrees not to
exercise any claim or other rights which it may now or hereafter acquire
against the Company that arise from the existence, payment, performance or
enforcement of the Company’s obligations under the Notes or this Indenture and
such Guarantor’s obligations under this Guarantee and this Indenture, in any
such instance including, without limitation, any right of subrogation,
reimbursement, exoneration, contribution, indemnification, and any right to
participate in any claim or remedy of the Holders against the Company, whether
or not such claim, remedy or right arises in equity, or under contract, statute
or common law, including, without limitation, the right to take or receive from
the Company, directly or indirectly, in cash or other property or by set-off or
in any other manner, payment or security on account of such claim or other
rights.  If any amount shall be paid to
any Guarantor in violation of the preceding sentence and any amounts owing to
the Trustee or the Holders of Notes under the Notes, this Indenture, or any
other document or instrument delivered under or in connection with such
agreements or instruments, shall not have been paid in full, such amount shall
have been deemed to have been paid to such Guarantor for the benefit of, and
held in trust for the benefit of, the Trustee or the Holders and shall
forthwith be paid to the Trustee for the benefit of itself or such Holders to
be credited and applied to the obligations in favor of the Trustee or the
Holders, as the case may be, whether matured or unmatured, in accordance with
the terms of this Indenture.  Each Guarantor
acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by this Indenture and that the waiver set
forth in this Section 11.05 is knowingly made in contemplation of such
benefits.

 

Section 11.06                          Immediate
Payment.

 

Each Guarantor agrees to make immediate payment to the Trustee on
behalf of the Holders of all Obligations owing or payable to the respective
Holders upon receipt of a demand for payment therefor by the Trustee to such
Guarantor in writing.

 

Section 11.07                          No
Set-Off.

 

Each payment to be made by a Guarantor hereunder in respect of the
Obligations shall be payable in the currency or currencies in which such
Obligations are denominated, and shall be made without set-off, defense,
counterclaim, reduction or diminution of any kind or nature.

 

Section 11.08                          Obligations
Absolute.

 

The obligations of each Guarantor hereunder are and shall be absolute
and unconditional and any monies or amounts expressed to be owing or payable by
each Guarantor hereunder which may not be recoverable from such Guarantor on
the basis of a Guarantee shall be recoverable from such Guarantor as a primary
obligor and principal debtor in respect thereof.

 

98

 

Section 11.09                          Obligations
Continuing.

 

The obligations of each Guarantor hereunder shall be continuing and
shall remain in full force and effect until all the obligations have been paid
and satisfied in full.  Each Guarantor
agrees with the Trustee that it will from time to time deliver to the Trustee
suitable acknowledgments of this continued liability hereunder and under any
other instrument or instruments in such form as counsel to the Trustee may
advise and as will prevent any action brought against it in respect of any
default hereunder being barred by any statute of limitations now or hereafter
in force and, in the event of the failure of a Guarantor so to do, it hereby
irrevocably appoints the Trustee the attorney and agent of such Guarantor to
make, execute and deliver such written acknowledgment or acknowledgments or
other instruments as may from time to time become necessary or advisable, in
the judgment of the Trustee on the advice of counsel, to fully maintain and
keep in force the liability of such Guarantor hereunder.

 

Section 11.10                          Obligations
Not Reduced.

 

The obligations of each Guarantor hereunder shall not be satisfied,
reduced or discharged solely by the payment of such principal, premium, if any,
interest, fees and other monies or amounts as may at any time prior to
discharge of this Indenture pursuant to Article Eight be or become owing
or payable under or by virtue of or otherwise in connection with the Notes or
this Indenture.

 

Section 11.11                          Obligations
Reinstated.

 

The obligations of each Guarantor hereunder shall continue to be
effective or shall be reinstated, as the case may be, if at any time any
payment which would otherwise have reduced the obligations of any Guarantor
hereunder (whether such payment shall have been made by or on behalf of the Company
or by or on behalf of a Guarantor) is rescinded or reclaimed from any of the
Holders upon the insolvency, bankruptcy, liquidation or reorganization of the
Company or any Guarantor or otherwise, all as though such payment had not been
made.  If demand for, or acceleration of
the time for, payment by the Company is stayed upon the insolvency, bankruptcy,
liquidation or reorganization of the Company, all such Indebtedness otherwise
subject to demand for payment or acceleration shall nonetheless be payable by
each Guarantor as provided herein.

 

Section 11.12                          Obligations
Not Affected.

 

The obligations of each Guarantor hereunder shall not be affected,
impaired or diminished in any way by any act, omission, matter or thing
whatsoever, occurring before, upon or after any demand for payment hereunder
(and whether or not known or consented to by any Guarantor or any of the
Holders) which, but for this provision, might constitute a whole or partial
defense to a claim against any Guarantor hereunder or might operate to release
or otherwise exonerate any Guarantor from any of its obligations hereunder or
otherwise affect such obligations, whether occasioned by default of any of the
Holders or otherwise, including, without limitation:

 

99

 

(a)                                  any
limitation of status or power, disability, incapacity or other circumstance
relating to the Company or any other Person, including any insolvency,
bankruptcy, liquidation, reorganization, readjustment, composition, dissolution,
winding-up or other proceeding involving or affecting the Company or any other
Person;

 

(b)                                 any
irregularity, defect, unenforceability or invalidity in respect of any
indebtedness or other obligation of the Company or any other Person under this
Indenture, the Notes or any other document or instrument;

 

(c)                                  any
failure of the Company, whether or not without fault on its part, to perform or
comply with any of the provisions of this Indenture or the Notes, or to give
notice thereof to a Guarantor;

 

(d)                                 the
taking or enforcing or exercising or the refusal or neglect to take or enforce
or exercise any right or remedy from or against the Company or any other Person
or their respective assets or the release or discharge of any such right or
remedy;

 

(e)                                  the
granting of time, renewals, extensions, compromises, concessions, waivers,
releases, discharges and other indulgences to the Company or any other Person;

 

(f)                                    any
change in the time, manner or place of payment of, or in any other term of, any
of the Notes, or any other amendment, variation, supplement, replacement or
waiver of, or any consent to departure from, any of the Notes or this
Indenture, including, without limitation, any increase or decrease in the
principal amount of or premium, if any, or interest on any of the Notes;

 

(g)                                 any
change in the ownership, control, name, objects, businesses, assets, capital
structure or constitution of the Company or a Guarantor;

 

(h)                                 any
merger or amalgamation of the Company or a Guarantor with any Person or
Persons;

 

(i)                                     the
occurrence of any change in the laws, rules, regulations or ordinances of any
jurisdiction by any present or future action of any governmental authority or
court amending, varying, reducing or otherwise affecting, or purporting to
amend, vary, reduce or otherwise affect, any of the Obligations or the
obligations of a Guarantor under its Guarantee; and

 

(j)                                     any
other circumstance, (other than release of the Guarantor pursuant to Section 11.04
and other than by complete, irrevocable payment) that might otherwise
constitute a legal or equitable discharge or defense of the Company under this
Indenture or the Notes or of a Guarantor in respect of its Guarantee hereunder.

 

Section 11.13                          Waiver.

 

Without in any way limiting the provisions of Section 11.01 hereof,
each Guarantor hereby waives notice of acceptance hereof, notice of any
liability of any Guarantor hereunder, notice or proof of reliance by the Holders
upon the obligations of

 

100

 

any Guarantor hereunder, and diligence, presentment, demand for payment
on the Company, protest, notice of dishonor or non-payment of any of the
Obligations, or other notice or formalities to the Company or any Guarantor of
any kind whatsoever.

 

Section 11.14                          No
Obligation To Take Action Against the Company.

 

Neither the Trustee nor any other Person shall have any obligation to
enforce or exhaust any rights or remedies or to take any other steps under any
security for the Obligations or against the Company or any other Person or any
property of the Company or any other Person before the Trustee is entitled to
demand payment and performance by any or all Guarantors of their liabilities
and obligations under their Guarantees or under this Indenture.

 

Section 11.15                          Dealing
with the Company and Others.

 

The Holders, without releasing, discharging, limiting or otherwise
affecting in whole or in part the obligations and liabilities of any Guarantor
hereunder and without the consent of or notice to any Guarantor, may

 

(a)                                  grant
time, renewals, extensions, compromises, concessions, waivers, releases,
discharges and other indulgences to the Company or any other Person;

 

(b)                                 take
or abstain from taking security or collateral from the Company or from
perfecting security or collateral of the Company;

 

(c)                                  accept
compromises or arrangements from the Company;

 

(d)                                 apply
all monies at any time received from the Company or from any security upon such
part of the Obligations as the Holders may see fit or change any such
application in whole or in part from time to time as the Holders may see fit;
and

 

(e)                                  otherwise
deal with, or waive or modify their right to deal with, the Company and all
other Persons and any security as the Holders or the Trustee may see fit.

 

Section 11.16                          Default
and Enforcement.

 

If any Guarantor fails to pay in accordance with Section 11.06
hereof, the Trustee may proceed in its name as trustee hereunder in the
enforcement of the Guarantee of any such Guarantor and such Guarantor’s
obligations thereunder and hereunder by any remedy provided by law, whether by
legal proceedings or otherwise, and to recover from such Guarantor the
obligations.

 

Section 11.17                          Amendment,
Etc.

 

No amendment, modification or waiver of any provision of this Indenture
relating to any Guarantor or consent to any departure by any Guarantor or any
other Person from any such provision will in any event be effective unless it
is signed by such Guarantor and the Trustee.

 

101

 

Section 11.18                          Acknowledgment.

 

Each Guarantor hereby acknowledges communication of the terms of this
Indenture and the Notes and consents to and approves of the same.

 

Section 11.19                          Costs
and Expenses.

 

Each Guarantor shall pay on demand by the Trustee any and all costs,
fees and expenses (including, without limitation, legal fees) incurred by the
Trustee, its agents, advisors and counsel or any of the Holders in enforcing
any of their rights under any Guarantee.

 

Section 11.20                          No
Waiver; Cumulative Remedies.

 

No failure to exercise and no delay in exercising, on the part of the
Trustee or the Holders, any right, remedy, power or privilege hereunder or
under this Indenture or the Notes, shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power or privilege
hereunder or under this Indenture or the Notes preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or
privilege.  The rights, remedies, powers
and privileges in the Guarantee and under this Indenture, the Notes and any
other document or instrument between a Guarantor and/or the Company and the
Trustee are cumulative and not exclusive of any rights, remedies, powers and
privilege provided by law.

 

Section 11.21                          Guarantee
in Addition to Other Obligations.

 

The obligations of each Guarantor under its Guarantee and this
Indenture are in addition to and not in substitution for any other obligations
to the Trustee or to any of the Holders in relation to this Indenture or the
Notes and any guarantees or security at any time held by or for the benefit of
any of them.

 

Section 11.22                          Severability.

 

Any provision of this Article Eleven which is prohibited or
unenforceable in any jurisdiction shall not invalidate the remaining provisions
and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction
unless its removal would substantially defeat the basic intent, spirit and
purpose of this Indenture and this Article Eleven.

 

Section 11.23                          Successors
and Assigns.

 

Unless released in accordance with this Indenture, each Guarantee shall
be binding upon and inure to the benefit of each Guarantor and the Trustee and
the other Holders and their respective successors and permitted assigns, except
that no Guarantor may assign any of its obligations hereunder or thereunder.

 

102

 

ARTICLE XII

 

SUBORDINATION
OF GUARANTEE

 

Section 12.01                          Guarantee
Obligations Subordinated to Guarantor Senior Debt.

 

Anything herein to the contrary notwithstanding, each of the
Guarantors, for itself and its successors, and each Holder, by his or her
acceptance of Guarantees, agrees that the payment of all Obligations owing to
the Holders in respect of its Guarantee (collectively, as to any Guarantor, its
“Guarantee Obligations”) is subordinated, to the extent and in the manner
provided in this Article Twelve, to the prior payment in full in cash,
Cash Equivalents or Foreign Cash Equivalents, or such payment duly provided for
to the satisfaction of the holders of Guarantor Senior Debt, of all Obligations
on Guarantor Senior Debt of such Guarantor, including without limitation, the
Guarantors’ obligations under the Credit Facilities.

 

This Article Twelve shall constitute a continuing offer to all
Persons who become holders of, or continue to hold, Guarantor Senior Debt, and
such provisions are made for the benefit of the holders of Guarantor Senior
Debt and such holders are made obligees hereunder and any one or more of them
may enforce such provisions.

 

Section 12.02                          Suspension
of Guarantee Obligations When Guarantor Senior Debt Is in Default.

 

(a)                                  Unless
Section 12.03 shall be applicable, upon (1) the occurrence of a Payment
Default with respect to any Designated Senior Debt of a Guarantor or guaranteed
by a Guarantor (which Designated Senior Debt or guarantee, as the case may be,
constitutes Guarantor Senior Debt of such Guarantor) and (2) receipt by the
Trustee, the Company and such Guarantor from a Representative of written notice
of such occurrence, then no payment (other than payments previously made
pursuant to Article Eight) or distribution of any assets of such Guarantor
of any kind or character shall be made by or on behalf of such Guarantor or any
other Person on its behalf on account of any Obligations under the Notes or on
account of the purchase, redemption or other acquisition of Notes for cash or
property or otherwise (except that Holders may receive (i) Permitted Junior
Securities and (ii) payments made from the trusts described in Section 8.01)
until such Payment Default shall have been cured or waived or shall have ceased
to exist or such Guarantor Senior Debt shall have been discharged or paid in
full in cash, Cash Equivalents or Foreign Cash Equivalents, or such payment
duly provided for to the satisfaction of the holders of Guarantor Senior Debt,
after which such Guarantor shall resume making any and all required payments in
respect of its obligations under this Guarantee, including any missed payments.

 

(b)                                 Unless
Section 12.03 shall be applicable upon (1) the occurrence of any event of
default (other than a Payment Default) with respect to any Designated Senior
Debt of a Guarantor (as such event of default is defined in the instrument
creating or evidencing such Designated Senior Debt of a Guarantor) and (2) the
earlier of (i)

 

103

 

receipt by the Trustee, the Company and such
Guarantor from a Representative of written notice of such occurrence stating
that such notice is a “Payment Blockage Notice” pursuant to this Section 12.02
or (ii) if such Non-payment Default results from the acceleration of the
Securities, the date of the acceleration of the Securities, no payment (other
than payments previously made pursuant to Article Eight hereof) or
distribution of any assets of such Guarantor of any kind or character shall be
made by on or behalf of such Guarantor or any other Person on its or their
behalf on account of principal, premium, if any, or interest on the Notes or on
account of the purchase, redemption or other acquisition of Notes for cash or
property or otherwise (except that Holders may receive (i) Permitted Junior
Securities and (ii) payments made from the trusts described in Section 8.01)
for a period (the “Guarantor Payment Blockage Period”) commencing on the date
of receipt by the Trustee of such notice or the date of the acceleration
referred to in clause (ii) above, as the case may be, unless and until the
earlier to occur of the following events: (w) 180 days shall have elapsed since
receipt of such written notice by the Trustee or the date of the acceleration
of the Notes, as the case may be (provided no Designated Senior Debt of a
Guarantor shall theretofore have been accelerated), (x) such Non-payment
Default shall have been cured or waived or shall have ceased to exist, (y) such
Designated Senior Debt shall have been discharged or paid in full in cash, Cash
Equivalents or Foreign Cash Equivalents, or such payment duly provided for to
the satisfaction of the holders of such Designated Senior Debt of a Guarantor
or (z) such Guarantor Payment Blockage Period shall have been terminated by
written notice to the Trustee from the Representative initiating Guarantor
Payment Blockage Period, or the holders of at least a majority in principal
amount of such issue of Guarantor Senior Debt, after which, in the case of
clause (w), (x), (y) or (z), such Guarantor shall resume making any and all
required payments in respect of its obligations under its Guarantee, including
any missed payments.  Notwithstanding
anything herein to the contrary, (x) in no event will a Guarantor Payment
Blockage Period or successive Guarantor Payment Blockage Periods with respect
to the same payment on a Guarantee extend beyond 180 days from the date the
payment on a Guarantee was due and (y) only one such Guarantor Payment Blockage
Period may be commenced within any 360 consecutive days.  For all purposes of this Section 12.02(b),
no event of default which existed or was continuing on the date of the
commencement of any Guarantor Payment Blockage Period with respect to the
Designated Senior Debt of a Guarantor initiating such Guarantor Payment
Blockage Period shall be, or be made, the basis for the commencement of a
second Guarantor Payment Blockage Period by the holders or by the agent or
other representative of such Designated Senior Debt of a Guarantor whether or
not within a period of 360 consecutive days, unless such event of default shall
have been cured or waived for a period of not less than 90 consecutive days (it
being acknowledged that any subsequent action, or any breach of any financial
covenants for a period commencing after the date of commencement of such
Guarantor Payment Blockage Period that, in either case, would give rise to an
event of default pursuant to any provisions under which an event of default
previously existed or was continuing shall constitute a new event of default
for this purpose).

 

(c)                                  In
the event that, notwithstanding the foregoing, a Guarantor shall have made
payment to the Trustee or directly to the Holder of any Note prohibited by the
foregoing provisions of this Section 12.02, then and in such event such
payment shall be

 

104

 

segregated from other funds and held in trust
by the Trustee or such Holder or Paying Agent for the benefit of, and shall
immediately be paid over to, the holders of Designated Senior Debt of a
Guarantor or to the Representatives or as a court of competent jurisdiction
shall direct.

 

Section 12.03                          Guarantee
Obligations Subordinated to Prior Payment of All Guarantor Senior Debt on
Dissolution, Liquidation or Reorganization of Such Subsidiary Guarantor.

 

Upon any payment or distribution of assets of any Guarantor of any kind
or character, whether in cash, property or securities to creditors upon any
liquidation, dissolution, winding up, reorganization, assignment for the
benefit of creditors or marshaling of assets of such Guarantor, whether
voluntary or involuntary, or in a bankruptcy, reorganization, insolvency,
receivership or other similar proceeding relating to any Guarantor or its
property, whether voluntary or involuntary, but excluding any liquidation or
dissolution of a Guarantor into the Company or into another Guarantor:

 

(a)                                  the
holders of all Guarantor Senior Debt of such Guarantor shall first be entitled
to receive payments in full in cash, Cash Equivalents or Foreign Cash
Equivalents, or such payment duly provided for to the satisfaction of the
holders of Guarantor Senior Debt, of all amounts payable under Guarantor Senior
Debt before the Holders will be entitled to receive any payment or distribution
of any kind or character on account of the Guarantee of such Guarantor, and
until all Obligations with respect to the Guarantor Senior Debt are paid in
full in cash, Cash Equivalents or Foreign Cash Equivalents, or such payment
duly provided for to the satisfaction of the holders of Guarantor Senior Debt,
any distribution to which the Holders would be entitled shall be made to the
holders of Guarantor Senior Debt of such Guarantor;

 

(b)                                 any
payment or distribution of assets of such Guarantor of any kind or character,
whether in cash, property or securities, to which the Holders or the Trustee on
behalf of the Holders would be entitled except for the provisions of this Article Twelve
shall be paid by the liquidating trustee or agent or other Person making such a
payment or distribution, directly to the holders of Guarantor Senior Debt of
such Guarantor or their representatives, ratably according to the respective
amounts of such Guarantor Senior Debt remaining unpaid held or represented by
each, until all such Guarantor Senior Debt remaining unpaid shall have been
paid in full in cash, Cash Equivalents or Foreign Cash Equivalents, or such
payment duly provided for to the satisfaction of the holders of Guarantor
Senior Debt, after giving effect to any concurrent payment or distribution to
the holders of such Guarantor Senior Debt;

 

(c)                                  in
the event that, notwithstanding the foregoing, any payment or distribution of
assets of such Guarantor of any kind or character, whether such payment shall
be in cash, property or securities, and such Guarantor shall have made payment
to the Trustee or directly to the Holders or any Paying Agent in respect of
payment of the Guarantees before all Guarantor Senior Debt of such Guarantor is
paid in full in cash, Cash Equivalents or Foreign Cash Equivalents, or such
payment duly provided for to the satisfaction of the holders of Guarantor
Senior Debt, such payment or distribution

 

105

 

(subject to the provisions of Sections 12.06
and 12.07) shall be received, segregated from other funds, and held in trust by
the Trustee or such Holder or Paying Agent for the benefit of, and shall
immediately be paid over by the Trustee (if the notice required by Section 12.06
has been received by the Trustee) or by the Holder to, the holders of such
Guarantor Senior Debt or their representatives, ratably according to the respective
amounts of such Guarantor Senior Debt held or represented by each, until all
such Guarantor Senior Debt remaining unpaid shall have been paid in full in
cash, Cash Equivalents or Foreign Cash Equivalents, or such payment duly
provided for to the satisfaction of the holders of Guarantor Senior Debt, after
giving effect to any concurrent payment or distribution to the holders of
Guarantor Senior Debt.

 

Each Guarantor shall give prompt notice to the Trustee prior to any
dissolution, winding up, total or partial liquidation or total or
reorganization (including, without limitation, in bankruptcy, insolvency, or
receivership proceedings or upon any assignment for the benefit of creditors or
any other marshaling of such Guarantor’s assets and liabilities).

 

Section 12.04                          Holders
of Guarantee Obligations To Be Subrogated to Rights of Holders of Guarantor
Senior Debt.

 

Subject to the payment in full in cash, Cash Equivalents or Foreign
Cash Equivalents, or such payment duly provided for to the satisfaction of the
holders of Guarantor Senior Debt, of all Guarantor Senior Debt, the Holders of
Guarantee Obligations of a Guarantor shall be subrogated to the rights of the
holders of Guarantor Senior Debt of such Guarantor to receive payments or
distributions of assets of such Guarantor applicable to such Guarantor Senior
Debt until all amounts owing on or in respect of the Guarantee Obligations
shall be paid in full in cash, Cash Equivalents or Foreign Cash Equivalents,
and for the purpose of such subrogation no payments or distributions to the
holders of such Guarantor Senior Debt by or on behalf of such Guarantor, or by
or on behalf of the Holders by virtue of this Article Twelve, which
otherwise would have been made to the Holders shall, as between such Guarantor and
the Holders, be deemed to be payment by such Guarantor to or on account of such
Guarantor Senior Debt, it being understood that the provisions of this Article Twelve
are and are intended solely for the purpose of defining the relative rights of
the Holders, on the one hand, and the holders of such Guarantor Senior Debt, on
the other hand.

 

If any payment or distribution to which the Holders would otherwise
have been entitled but for the provisions of this Article Twelve shall
have been applied, pursuant to the provisions of this Article Twelve, to
the payment of all amounts payable under such Guarantor Senior Debt, then the
Holders shall be entitled to receive from the holders of such Guarantor Senior
Debt any such payments or distributions received by such holders of such
Guarantor Senior Debt in excess of the amount sufficient to pay all amounts
payable under or in respect of such Guarantor Senior Debt in full in cash, Cash
Equivalents or Foreign Cash Equivalents, or such payment duly provided for to the
satisfaction of the holders of Guarantor Senior Debt.

 

106

 

Each Holder by purchasing or accepting a Note waives any and all notice
of the creation, modification, renewal, extension or accrual of any Guarantor
Senior Debt of the Guarantors and notice of or proof of reliance by any holder
or owner of Guarantor Senior Debt of the Guarantors upon this Article Twelve
and the Guarantor Senior Debt of the Guarantors shall conclusively be deemed to
have been created, contracted or incurred in reliance upon this Article Twelve,
and all dealings between the Guarantors and the holders and owners of the
Guarantor Senior Debt of the Guarantors shall be deemed to have been
consummated in reliance upon this Article Twelve.

 

Section 12.05                          Obligations
of the Guarantors Unconditional.

 

Nothing contained in this Article Twelve or elsewhere in this
Indenture or in the Guarantees is intended to or shall impair, as between the
Guarantors and the Holders, the obligation of the Guarantors, which is absolute
and unconditional, to pay to the Holders all amounts due and payable under the
Guarantees as and when the same shall become due and payable in accordance with
their terms, or is intended to or shall affect the relative rights of the
Holders and creditors of the Guarantors other than the holders of the Guarantor
Senior Debt, nor shall anything herein or therein prevent the Trustee or any
Holder from exercising all remedies otherwise permitted by applicable law upon
default under this Indenture, subject to the rights, if any, under this Article Twelve,
of the holders of Guarantor Senior Debt in respect of cash, property or
securities of the Guarantors received upon the exercise of any such
remedy.  Upon any payment or distribution
of assets of any Guarantor referred to in this Article Twelve, the
Trustee, subject to the provisions of Sections 7.01 and 7.02, and the Holders
shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction in which any liquidation, dissolution, winding up or
reorganization proceedings are pending, or a certificate of the receiver,
trustee in bankruptcy, liquidating trustee or agent or other Person making any
payment or distribution to the Trustee or to the Holders for the purpose of
ascertaining the Persons entitled to participate in such payment or
distribution, the holders of Guarantor Senior Debt and other Indebtedness of
any Guarantor, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to this Article Twelve.  Nothing in this Article Twelve shall
apply to the claims of, or payments to, the Trustee under or pursuant to Section 7.07.  The Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself or itself
to be a holder of any Guarantor Senior Debt (or a trustee on behalf of, or
other representative of, such holder) to establish that such notice has been
given by a holder of such Guarantor Senior Debt or a trustee or representative
on behalf of any such holder.

 

In the event that the Trustee determines in good faith that any
evidence is required with respect to the right of any Person as a holder of
Guarantor Senior Debt to participate in any payment or distribution pursuant to
this Article Twelve, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of
Guarantor Senior Debt held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article Twelve, and if
such evidence is

 

107

 

not furnished, the Trustee may defer any payment to such Person pending
judicial determination as to the right of such Person to receive such payment.

 

Section 12.06                          Trustee
Entitled To Assume Payments Not Prohibited in Absence of Notice.

 

The Trustee shall not at any time be charged with knowledge of the
existence of any facts that would prohibit the making of any payment to or by
the Trustee unless and until the Trustee or any Paying Agent shall have
received notice thereof from the Company or any Guarantor or from one or more
holders of Guarantor Senior Debt or from any Representative therefor and, prior
to the receipt of any such notice, the Trustee, subject to the provisions of
Sections 7.01 and 7.02, shall be entitled in all respects conclusively to
assume that no such fact exists.

 

Section 12.07                          Application
by Trustee of Assets Deposited with It.

 

U.S. Legal Tender, U.S. Government Obligations, Euros or Euro
Obligations deposited in trust with the Trustee pursuant to and in accordance
with Sections 8.01 and 8.02 shall be for the sole benefit of Holders of the
Notes and, to the extent allocated for the payment of Notes, shall not be
subject to the subordination provisions of this Article Twelve.  Otherwise, any deposit of assets or
securities by or on behalf of a Guarantor with the Trustee or any Paying Agent
(whether or not in trust) for payment of the Guarantees shall be subject to the
provisions of this Article Twelve; provided, however, that
if prior to the second Business Day preceding the date on which by the terms of
this Indenture any such assets may become distributable for any purpose
(including, without limitation, the payment of either principal of or interest
on any Note) the Trustee or such Paying Agent shall not have received with
respect to such assets the notice provided for in Section 12.06, then the
Trustee or such Paying Agent shall have full power and authority to receive
such assets and to apply the same to the purpose for which they were received,
and shall not be affected by any notice to the contrary received by it on or
after such date.  The foregoing shall not
apply to the Paying Agent if the Company or any Subsidiary or Affiliate of the
Company is acting as Paying Agent. 
Nothing contained in this Section 12.07 shall limit the right of
the holders of Guarantor Senior Debt to recover payments as contemplated by
this Article Twelve.

 

Section 12.08                          No
Waiver of Subordination Provisions.

 

(a)                                  No
right of any present or future holder of any Guarantor Senior Debt to enforce
subordination as herein provided shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of any Guarantor or by any
act or failure to act, by any such holder, or by any non-compliance by any
Guarantor with the terms, provisions and covenants of this Indenture, regardless
of any knowledge thereof any such holder may have or be otherwise charged with.

 

(b)                                 Without
limiting the generality of subsection (a) of this Section 12.08, the
holders of Guarantor Senior Debt may, at any time and from time to time,
without the consent of or notice to the Trustee or the Holders of the
Securities, without incurring

 

108

 

responsibility to the Holders of the Notes and
without impairing or releasing the subordination provided in this Article Twelve
or the obligations hereunder of the Holders of the Notes to the holders of
Guarantor Senior Debt, do any one or more of the following: (1) change the
manner, place, terms or time of payment of, or renew or alter, Guarantor Senior
Debt or any instrument evidencing the same or any agreement under which
Guarantor Senior Debt is outstanding; (2) sell, exchange, release or otherwise
deal with any property pledged, mortgaged or otherwise securing Guarantor
Senior Debt; (3) release any Person liable in any manner for the collection or
payment of Guarantor Senior Debt; and (4) exercise or refrain from exercising
any rights against the Guarantors and any other Person.

 

Section 12.09                          Holders
Authorize Trustee To Effectuate Subordination of Guarantee Obligations.

 

Each Holder of the Guarantee Obligations by his acceptance thereof
authorizes and expressly directs the Trustee on his behalf to take such action
as may be necessary or appropriate to effect the subordination provisions
contained in this Article Twelve, and appoints the Trustee his
attorney-in-fact for such purpose, including, in the event of any liquidation,
dissolution, winding up, reorganization, assignment for the benefit of
creditors or marshaling of assets of any Guarantor tending towards liquidation
or reorganization of the business and assets of any Guarantor, the immediate
filing of a claim for the unpaid balance under its or his Guarantee Obligations
in the form required in said proceedings and cause said claim to be approved.  If the Trustee does not file a proper claim
or proof of debt in the form required in such proceeding prior to 30 days
before the expiration of the time to file such claim or claims, then any of the
holders of the Guarantor Senior Debt or their Representative is hereby authorized
to file an appropriate claim for and on behalf of the Holders of said Guarantee
Obligations.  Nothing herein contained
shall be deemed to authorize the Trustee or the holders of Guarantor Senior
Debt or their Representative to authorize or consent to or accept or adopt on
behalf of any holder of Guarantee Obligations any plan of reorganization,
arrangement, adjustment or composition affecting the Guarantee Obligations or
the rights of any Holder thereof, or to authorize the Trustee or the holders of
Guarantor Senior Debt or their Representative to vote in respect of the claim
of any holder of Guarantee Obligations in any such proceeding.

 

Section 12.10                          Right
of Trustee To Hold Guarantor Senior Indebtedness.

 

The Trustee shall be entitled to all of the rights set forth in this Article Twelve
in respect of any Guarantor Senior Debt at any time held by it to the same
extent as any other holder of Guarantor Senior Debt, and nothing in this
Indenture shall be construed to deprive the Trustee of any of its rights as
such holder.

 

Section 12.11                          No
Suspension of Remedies.

 

The failure to make a payment in respect of the Guarantees by reason of
any provision of this Article Twelve shall not be construed as preventing
the occurrence of a Default or an Event of Default under Section 6.01.

 

109

 

Nothing contained in this Article Twelve shall limit the right of
the Trustee or the Holders of Notes to take any action to accelerate the
maturity of the Notes pursuant to Article Six or to pursue any rights or
remedies hereunder or under applicable law, subject to the rights, if any,
under this Article Twelve of the holders, from time to time, of Guarantor
Senior Debt.

 

Section 12.12                          No
Fiduciary Duty of Trustee to Holders of Guarantor Senior Debt.

 

The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Guarantor Senior Debt, and it undertakes to perform or observe such
of its covenants and obligations as are specifically set forth in this Article Twelve,
and no implied covenants or obligations with respect to the Guarantor Senior
Debt shall be read into this Indenture against the Trustee.  The Trustee shall not be liable to any such
holders (other than for its willful misconduct or gross negligence) if it shall
pay over or deliver to the holders of Guarantee Obligations or the Guarantors
or any other Person, money or assets in compliance with the terms of this
Indenture.  Nothing in this Section 12.12
shall affect the obligation of any Person other than the Trustee to hold such
payment for the benefit of, and to pay such payment over to, the holders of
Guarantor Senior Debt or their Representative.

 

ARTICLE XIII

 

MISCELLANEOUS

 

Section 13.01                          TIA
Controls.

 

If any provision of this Indenture limits, qualifies, or conflicts with
another provision which is required to be included in this Indenture by the
TIA, the required provision shall control. 
If any provision of this Indenture modifies or excludes any provision of
the TIA that may be so modified or excluded, the latter provision shall be
deemed to apply to this Indenture as so modified or excluded, as the case may
be.

 

Section 13.02                          Notices.

 

Any notices or other communications required or permitted hereunder
shall be in writing, and shall be sufficiently given if made by hand delivery,
by telex, by telecopier or registered or certified mail, postage prepaid,
return receipt requested, addressed as follows:

 

if to the Company or any Guarantor:

 

Huntsman International LLC

500 Huntsman Way

Salt Lake City, Utah 84108

 

Attention: Office of General Counsel

 

110

 

if to the Trustee:

 

Wells Fargo Bank, National Association

Sixth Street and Marquette Avenue

MAC N9303-120

Minneapolis, Minnesota  55479

Attention: Corporate Trust Services -

Huntsman Administrator

 

The Company, the Guarantors and the Trustee by written notice to each
other may designate additional or different addresses for notices.  Any notice or communication to the Company,
the Guarantors or the Trustee shall be deemed to have been given or made as of
the date so delivered if personally delivered; when answered back, if telexed;
when receipt is acknowledged, if faxed; and five (5) calendar days after
mailing if sent by registered or certified mail, postage prepaid (except that a
notice of change of address shall not be deemed to have been given until
actually received by the addressee).

 

As long as the Securities are listed on the Luxembourg Stock Exchange
and notice is required by the rules of the Luxembourg Stock Exchange, such
notice shall be sufficiently given by publication of such notice to Holders of
the Securities in English in a leading newspaper having general circulation in
Luxembourg (which is expected to be the Luxembourg Wort) or, if such publication
is not practicable, in one other leading English language daily newspaper with
general circulation in Europe, such newspaper being published on each business
day in morning editions, whether or not it shall be published in Saturday,
Sunday or holiday editions.

 

Any notice or communication mailed to a Holder shall be mailed to him
by first class mail or other equivalent means at his address as it appears on
the registration books of the Registrar and shall be sufficiently given to him
if so mailed within the time prescribed.

 

Failure to mail a notice or communication to a Noteholder or any defect
in it shall not affect its sufficiency with respect to other Holders.  If a notice or communication is mailed in the
manner provided above, it is duly given, whether or not the addressee receives
it.

 

Section 13.03                          Communications
by Holders with Other Holders.

 

Holders may communicate pursuant to TIA (§) 312(b) with other Holders
with respect to their rights under this Indenture or the Notes.  The Company, the Trustee, the Registrar and
any other Person shall have the protection of TIA (§) 312(c).

 

Section 13.04                          Certificate
and Opinion as to Conditions Precedent.

 

Upon any request or application by the Company or the Guarantors to the
Trustee to take any action under this Indenture, the Company shall furnish to
the Trustee:

 

111

 

(1)                                  an
Officers’ Certificate, in form and substance satisfactory to the Trustee,
stating that, in the opinion of the signers, all conditions precedent to be
performed by the Company, if any, provided for in this Indenture relating to
the proposed action have been complied with; and

 

(2)                                  an
Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent to be performed by the Company, if any, provided for in
this Indenture relating to the proposed action have been complied with.

 

Section 13.05                          Statements
Required in Certificate or Opinion.

 

Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture, other than the Officers’
Certificate required by Section 4.07, shall include:

 

(1)                                  a
statement that the Person making such certificate or opinion has read such
covenant or condition;

 

(2)                                  a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion
are based;

 

(3)                                  a
statement that, in the opinion of such Person, he has made such examination or
investigation as is reasonably necessary to enable him to express an informed
opinion as to whether or not such covenant or condition has been complied with;
and

 

(4)                                  a
statement as to whether or not, in the opinion of each such Person, such
condition or covenant has been complied with.

 

Section 13.06                          Rules
by Trustee, Paying Agent, Registrar.

 

The Trustee may make reasonable rules in accordance with the Trustee’s
customary practices for action by or at a meeting of Holders.  The Paying Agent or Registrar may make
reasonable rules for its functions.

 

Section 13.07                          Legal
Holidays.

 

If a payment date under this Indenture is not a Business Day, payment
may be made at such place on the next succeeding day that is a Business Day,
and no interest shall accrue for the intervening period.

 

Section 13.08                          Governing
Law.

 

THIS INDENTURE, THE NOTES AND THE GUARANTEES SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  Each of the parties hereto agrees to submit
to the non-

 

112

 

exclusive jurisdiction of the competent courts of the State of New York
in any action or proceeding arising out of or relating to this Indenture or the
Notes.

 

Section 13.09                          No
Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret another indenture, loan or
debt agreement of the Company or any of its Subsidiaries.  Any such indenture, loan or debt agreement
may not be used to interpret this Indenture.

 

Section 13.10                          No
Recourse Against Others.

 

A past, present or future director, officer, member, manager, employee,
stockholder or incorporator, as such, of the Company or any Guarantor shall not
have any liability for any obligations of the Company or any Guarantor under
the Notes, the Guarantees or this Indenture or for any claim based on, in
respect of or by reason of such obligations or their creations.  Each Holder by accepting a Note waives and
releases all such liability.  Such waiver
and release are part of the consideration for the issuance of the Notes.

 

Section 13.11                          Successors.

 

All agreements of the Company in this Indenture and the Notes shall
bind its successors.  All agreements of
the Trustee in this Indenture shall bind its successors.

 

Section 13.12                          Duplicate
Originals.

 

All parties may sign any number of copies of this Indenture.  Each signed copy shall be an original, but
all of them together shall represent the same agreement.

 

Section 13.13                          Severability.

 

In case any one or more of the provisions in this Indenture or in the
Notes shall be held invalid, illegal or unenforceable, in any respect for any
reason, the validity, legality and enforceability of any such provision in
every other respect and of the remaining provisions shall not in any way be
affected or impaired thereby, it being intended that all of the provisions
hereof shall be enforceable to the full extent permitted by law.

 

Section 13.14                          Independence
of Covenants.

 

All covenants and agreements in this Indenture and the Notes shall be
given independent effect so that if any particular action or condition is not
permitted by any of such covenants, the fact that it would be permitted by an
exception to, or otherwise be within the limitations of, another covenant shall
not avoid the occurrence of a Default or an Event of Default if such action is
taken or condition exists.

 

[Remainder of Page Intentionally Left Blank]

 

113

 

SIGNATURES

 

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, all as of the date first written above.

 

	
   

  	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ J. Kimo Esplin

  	
   

  
	
   

  	
  Name: J. Kimo Esplin

  
	
   

  	
  Title: Executive Vice President and

  Chief Financial Officer

  
	
   

  
	
   

  	
  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

  

 

 

	
  Executed as a Deed by

  	
  TIOXIDE AMERICAS INC.

  
	
  Kevin C. Hardman

  	
   

  
	
  for and on behalf of

  	
   

  
	
  Tioxide Americas Inc

  	
  By:

  	
  /s/ Kevin Hardman

  	
   

  
	
  in the presence of

  	
   

  	
  Name: Kevin Hardman

  
	
   

  	
   

  	
  Title: Vice President, Tax

  
	
   

  	
   

  
	
  /s/ Michelle Fujnami

  	
   

  	
   

  
	
  Witness

  	
   

  
					

 

	
   

  	
  TIOXIDE GROUP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Kimo Esplin

  	
   

  
	
   

  	
   

  	
  Name: J. Kimo Esplin

  
	
   

  	
   

  	
  Title: Director

  

 

S-1

 

	
   

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jane Y. Schweiger

  	
   

  
	
   

  	
   

  	
  Name: Jane Y. Schweiger

  
	
   

  	
   

  	
  Title: Vice President

  

 

2

 

EXHIBIT A-1

 

[FORM OF RESTRICTED DOLLAR NOTE]

 

THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY
ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY
MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS
SECURITY IS NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE
EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED
BY RULE 144A THEREUNDER.  BY ITS
ACQUISITION HEREOF, THE HOLDER OF THIS SECURITY (1) REPRESENTS THAT (A) IT IS A
“QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT.

 

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT
OF HUNTSMAN INTERNATIONAL LLC THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO HUNTSMAN INTERNATIONAL LLC OR ITS
SUBSIDIARIES, (II) INSIDE THE UNITED STATES TO A PERSON WHO THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (III) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE
WITH RULE 904 UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE) OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

A-1-1

 

HUNTSMAN INTERNATIONAL LLC

 

7 3/8% Senior Subordinated Note due 2015

 

No.  $                CUSIP
No.

 

HUNTSMAN INTERNATIONAL LLC, a Delaware limited liability company (the “Company”),
for value received, promises to pay to
                   
or registered assigns, the principal sum of $               ,
on January 1, 2015.

 

Interest Payment Dates: January 1 and July 1

 

Record Dates: December 15 and June 15

 

Reference is made to the further provisions of this Note contained
herein, which will for all purposes have the same effect as if set forth at
this place.

 

A-1-2

 

IN WITNESS WHEREOF, the Company has caused this Note to be signed
manually or by facsimile by its duly authorized officer.

 

	
  Dated:

  	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Certificate of Authentication

 

This is one of the 7 3/8% Senior Subordinated
Notes due 2015 referred to in the within-mentioned Indenture.

 

	
  Dated:

  	
  Wells Fargo Bank, National Association, as

  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  	
   

  
	
   

  	
   

  

 

A-1-3

 

(REVERSE OF DOLLAR NOTE)

 

7 3/8% Senior Subordinated Note due 2015

 

1.  Interest.  HUNTSMAN INTERNATIONAL LLC, a Delaware
limited liability company (the “Company”), promises to pay interest on the
principal amount of this Dollar Note at the rate per annum shown above.  Interest on the Dollar Notes will accrue from
the most recent date on which interest has been paid or, if no interest has been
paid, from December 17, 2004.  The
Company will pay interest semi-annually in arrears on each January 1 and July 1
(each, an “Interest Payment Date”) and at stated maturity, commencing on July 1,
2005.  Interest will be computed on the
basis of a 360-day year comprised of twelve 30-day months.

 

The Company shall pay interest on overdue principal and on overdue
installments of interest from time to time on demand at the rate borne by the
Dollar Notes (without regard to any applicable grace periods) to the extent
lawful.

 

2.  Method of Payment.  The Company shall pay interest on the Dollar
Notes (except defaulted interest) to the Persons who are the registered Holders
at the close of business on the Record Date immediately preceding the Interest
Payment Date even if the Dollar Notes are cancelled on registration of transfer
or registration of exchange after such Record Date.  Holders must surrender Dollar Notes to a
Paying Agent to collect principal payments. 
The Company shall pay principal, premium and interest in money of the
United States that at the time of payment is legal tender for payment of public
and private debts (“U.S. Legal Tender”). 
However, the Company may pay principal, premium and interest by its
check payable in such U.S. Legal Tender. 
The Company may deliver any such interest payment to the Paying Agent or
to a Holder at the Holder’s registered address.

 

3.  Paying Agent and Registrar.  Initially, Wells Fargo Bank, National
Association (the “Trustee”) will act as Paying Agent and Registrar.  The Company may change any Paying Agent,
Registrar or co-Registrar without notice to the Holders.  The Company or any of its Subsidiaries may,
subject to certain exceptions, act as Registrar or co-Registrar.

 

4.  Indenture.  The Company issued the Dollar Notes under an
Indenture, dated as of December 17, 2004 (the “Indenture”), among the
Company, each of the Guarantors named therein and the Trustee.  This Dollar Note is one of a duly authorized
issue of Dollar Notes of the Company designated as its dollar denominated 7 3/8%
Senior Subordinated Notes due 2015 (the “Dollar Notes”), which may be issued
under the Indenture.  The Company shall
be entitled to issue Additional Notes pursuant to Section 2.18 of the
Indenture.  The Dollar Notes and the
Company’s euro denominated 7 1/2% Senior Subordinated
Notes due 2015 (the “Euro Notes” and, together with the Dollar Notes, the “Notes”)
and any Additional Notes and any Exchange Notes issued in accordance with the
Indenture are treated as a single class of securities under the Indenture
unless otherwise specified in the Indenture. 
Capitalized terms used herein shall have the meanings assigned to them
in the Indenture unless otherwise defined herein.

 

A-1-4

 

The terms of the Notes include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act of 1939 (15
U.S.C.  §§ 77aaa-77bbbb) (the “TIA”),
as in effect on the date of the Indenture. 
Notwithstanding anything to the contrary herein, the Notes are subject
to all such terms, and Holders of Notes are referred to the Indenture and the
TIA for a statement of them.  The Notes
are senior subordinated unsecured obligations of the Company.

 

5.  Optional Redemption.  (a) The Dollar Notes will be redeemable, at
the- Company’s option, in whole at any time or in part from time to time, on
and after January 1, 2010, upon not less than 30 nor more than 60 days’
notice, at the following redemption prices (expressed as percentages of the
principal amount thereof) if redeemed during the twelve-month period commencing
on January 1 of the year set forth below, plus, in each case, accrued and
unpaid interest thereon, if any, to the date of redemption:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  103.688

  	
  %

  
	
  2011

  	
   

  	
  102.458

  	
  %

  
	
  2012

  	
   

  	
  101.229

  	
  %

  
	
  2013 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)  At any time, or from time to
time, prior to January 1, 2008, the Company may, at its option, use the
net cash proceeds of one or more Equity Offerings (as defined below) to redeem up
to 40% of the aggregate principal amount of Dollar Notes originally issued
(including the original principal amount of any Additional Dollar Notes) at a
redemption price equal to 107.375% of the principal amount thereof plus accrued
and unpaid interest thereon, if any, to the date of redemption; provided,
however, that at least 60% of the aggregate principal amount of the
Notes originally issued remain (including the principal amount of any
Additional Notes) outstanding immediately after any such redemption.  In order to effect the foregoing redemption
with the proceeds of any Equity Offering, the Company shall make such
redemption not more than 120 days after the consummation of any such Equity
Offering.

 

(c)  At any time prior to January 1,
2010, the Dollar Notes may be redeemed, in whole or in part at the option of
the Company, upon not less than 30 nor more than 60 days’ notice, at a
redemption price (the “Make-Whole Price”) equal to the greater of (i) 100.000%
of the principal amount thereof or (ii) as determined by an Independent
Investment Banker, the present value of (A) 103.688% of the Dollar Notes being
redeemed as of January 1, 2010 plus (B) all required interest payments due
on such Dollar Notes through January 1, 2010 (excluding accrued interest),
discounted to the Redemption Date on a semiannual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Adjusted Treasury Rate plus, in
each case, accrued interest to the Redemption Date.

 

6.  Notice of Redemption.  Notice of redemption will be mailed at least
30 days but not more than 60 days before the Redemption Date to each Holder
whose Dollar

 

A-1-5

 

Notes are to be redeemed at such Holder’s registered address, except as
provided in the Indenture.  Dollar Notes
in denominations larger than $1,000 may be redeemed in part.

 

7.  Change of Control Offer.  In the event of a Change of Control, upon the
satisfaction of the conditions set forth in the Indenture, the Company shall be
required to offer to repurchase all of the then outstanding Notes pursuant to a
Change of Control Offer at a purchase price equal to 101% of the principal
amount thereof plus accrued and unpaid interest, if any, to the date of
purchase.  Holders of Notes that are the
subject of such an offer to repurchase shall receive an offer to repurchase and
may elect to have such Notes repurchased in accordance with the provisions of
the Indenture pursuant to and in accordance with the terms of the Indenture.

 

8.  Limitation on Asset Sales.  Under certain circumstances set forth in Section 4.15
of the Indenture, the Company is required to apply the net proceeds from Asset
Sales to offer to repurchase the Notes at a price equal to 100% of the
principal amount thereof plus accrued and unpaid interest thereon, if any, to
the date of repurchase.

 

9.  Denominations; Transfer;
Exchange.  The Dollar Notes are in
fully registered form only, without coupons, in denominations of $1,000 and
integral multiples of $1,000.  A Holder
shall register the transfer or exchange of Notes in accordance with the
Indenture.  The Registrar may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay certain transfer taxes or similar governmental charges
payable in connection therewith as permitted by the Indenture.  The Registrar need not register the transfer
or exchange of any Notes during a period beginning 15 days before the mailing
of a redemption notice for any Notes or portions thereof selected for
redemption.

 

10.  Persons Deemed Owners.  The registered Holder of a Note shall be
treated as the owner of it for all purposes.

 

11.  Unclaimed Money.  If money for the payment of principal or
interest remains unclaimed for one year, the Trustee and the Paying Agent will
pay the money back to the Company.  After
that, all liability of the Trustee and such Paying Agent with respect to such
money shall cease.

 

12.  Discharge Prior to
Redemption or Maturity.  If the
Company at any time deposits with the Trustee U.S. Legal Tender or non-callable
U.S. Government Obligations sufficient to pay the principal of, premium and
interest on the Dollar Notes to redemption or maturity and complies with the
other provisions of this Indenture relating thereto, the Company will be
discharged from certain provisions of the Indenture and the Dollar Notes
(including certain covenants, but excluding its obligation to pay the principal
of, premium and interest on the Dollar Notes).

 

13.  Amendment; Supplement;
Waiver.  The Indenture or the Notes
may be amended or supplemented as provided in the Indenture.

 

14.  Restrictive Covenants.  The Indenture imposes certain limitations on
the ability of the Company and its Subsidiaries to, among other things, incur
additional

 

A-1-6

 

Indebtedness, pay dividends or make certain other restricted payments,
enter into transactions with Affiliates, create dividend or other payment
restrictions affecting Restricted Subsidiaries and merge or consolidate with
any other Person, sell, assign, transfer, lease, convey or otherwise dispose of
all or substantially all of its assets or adopt a plan of liquidation.  Such limitations are subject to a number of
important qualifications and exceptions. 
The Company must annually report to the Trustee on compliance with such
limitations.

 

15.  Successors.  When a successor assumes, in accordance with
this- Indenture, all the obligations of its predecessor under the Notes and the
Indenture, the predecessor will be released from those obligations.

 

16.  Defaults and Remedies.  If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes (including any Additional Notes) may declare all the
Notes to be due and payable in the manner, at the time and with the effect
provided in the Indenture.  Holders of
Notes may not enforce the Indenture or the Notes except as provided in the
Indenture.  The Trustee is not obligated
to enforce the Indenture or the Notes unless it has been offered indemnity or
security reasonably satisfactory to it. 
The Indenture permits, subject to certain limitations therein provided,
Holders of a majority in aggregate principal amount of the Notes (including any
Additional Notes) then outstanding to direct the Trustee in its exercise of any
trust or power.  The Trustee may withhold
from Holders of Notes notice of any continuing Default or Event of Default
(except a Default in payment of principal or interest) if it determines in good
faith that withholding notice is in their interest.

 

17.  Trustee Dealings with
Company.  The Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Notes and may otherwise deal with the Company, its Restricted and
Unrestricted Subsidiaries or their respective Affiliates as if it were not the
Trustee.

 

18.  No Recourse Against
Others.  No past, present or future
stockholder, director, officer, employee or incorporator, as such, of the
Company shall have any liability for any obligation of the Company under the
Notes or the Indenture or for any claim based on, in respect of or by reason
of, such obligations or their creation. 
Each Holder of a Note by accepting a Note waives and releases all such
liability.  The waiver and release are
part of the consideration for the issuance of the Notes.

 

19.  Authentication.  This Note shall not be valid until the
Trustee or authenticating agent manually signs the certificate of
authentication on this Note.

 

20.  Governing Law.  This Note shall be governed by, and construed
in- accordance with, the laws of the State of New York.

 

21.  Abbreviations and Defined
Terms.  Customary abbreviations may
be- used in the name of a Holder of a Note or an assignee, such as: TEN COM (=
tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint
tenants with right of 

 

A-1-7

 

survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

 

22.  CUSIP/ISIN Numbers.  The Company may cause CUSIP and/or ISIN
numbers to be printed on the Notes as a convenience to the Holders of the
Notes.  No representation is made as to
the accuracy of such numbers as printed on the Notes and reliance may be placed
only on the other identification numbers printed hereon.

 

23.  Registration Rights.  Pursuant to the Registration Rights
Agreement, the Company and the Guarantors will be obligated upon the occurrence
of certain events and subject to certain conditions to consummate an exchange
offer pursuant to which the Holder of this Dollar Note shall have the right to
exchange this Dollar Note for a 73/8% Senior Subordinated
Note due 2015 denominated in dollars, of the Company (an “Unrestricted Dollar
Note”) which have been registered under the Securities Act, in like principal
amount and having terms identical in all material respects as this Dollar
Note.  The Holders shall be entitled to
receive certain additional interest payments in the event such exchange offer
is not consummated and upon certain other conditions, all pursuant to and in
accordance with the terms of the Registration Rights Agreement.

 

24.  Indenture.  Each Holder, by accepting a Note, agrees to
be bound by all of the terms and provisions of the Indenture, as the same may
be amended from time to time. 
Capitalized terms used herein and not defined herein have the meanings
ascribed thereto in the Indenture

 

25.  Guarantees.  This Note will be entitled to the benefits of
certain senior subordinated Guarantees made for the benefit of the
Holders.  Reference is hereby made to the
Indenture for a statement of the respective rights, limitations of rights,
duties and obligations thereunder of the Guarantors, the Trustee and the
Holders.

 

The Company will furnish to any Holder of a Note upon written request
and without charge a copy of the Indenture. 
Requests may be made to: HUNTSMAN INTERNATIONAL LLC, 500 Huntsman Way,
Salt Lake City, Utah 84108, Attention: Office of General Counsel.

 

A-1-8

 

 

[FORM OF
ASSIGNMENT]

 

I or we assign to

 

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER

 

	
   

  	
   

  
	
   

  
	
   

  
	
  (please print or type name and address)

  
	
   

  
	
   

  
	
   

  
	
   

  

the within Note and all rights thereunder, and hereby irrevocably
constitutes and appoints

 

	
   

  

attorney to transfer the Note on the books of the Company with full
power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE: The
  signature on this assignment must correspond with the name as it appears upon
  the face of the within Note in every particular without alteration or
  enlargement or any change whatsoever and be guaranteed by the endorser’s bank
  or broker.

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
						

 

A-1-9

 

In connection
with any transfer of this Note occurring prior to the date of the declaration
by the Commission of the effectiveness of a registration statement under the
Securities Act of 1933, as amended (the “Securities Act”) covering resales of
this Note (which effectiveness shall not have been suspended or terminated at
the date of the transfer) the undersigned confirms that it has not utilized any
general solicitation or general advertising in connection with the transfer and
that the sale is being made:

 

	
  [Check One]

  
	
  (1)

  	
  o

  	
  to the Company or a subsidiary thereof; or

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  o

  	
  pursuant to and in compliance with Rule 144A under the Securities Act
  of 1933, as amended; or

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  o

  	
  to an institutional “accredited investor” (as defined in Rule
  501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended) that
  has furnished to the Trustee a signed letter containing certain
  representations and agreements (the form of which letter can be obtained from
  the Trustee); or

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  o

  	
  outside the United States to a “foreign purchaser” in compliance with
  Rule 904 of Regulation S under the Securities Act of 1933, as amended; or

  
	
   

  	
   

  	
   

  
	
  (5)

  	
  o

  	
  pursuant to the exemption from registration provided by Rule 144
  under the Securities Act of 1933, as amended; or

  
	
   

  	
   

  	
   

  
	
  (6)

  	
  o

  	
  pursuant to an effective registration statement under the Securities
  Act of 1933, as amended; or

  
	
   

  	
   

  	
   

  
	
  (7)

  	
  o

  	
  pursuant to another available exemption from the registration
  statement requirements of the Securities Act of 1933, as amended,

  
	
   

  	
   

  	
   

  
	 
	
  and, unless the box below is checked, the undersigned confirms that
  such Note is not being transferred to an “affiliate” of the Company as
  defined in Rule 144 under the Securities Act of 1933, as amended (an “Affiliate”):

  
	 
	
   

  
	
   

  	
  o

  	
  The transferee is an Affiliate of the Company.

  
				

 

Unless one of
the items is checked, the Trustee will refuse to register any of the Notes
evidenced by this certificate in the name of any person other than the
registered Holder thereof; provided, however, that if item (3),
(4), (5) or (7) is checked, the Company or the Trustee may require, prior to
registering any such transfer of the Notes, in their sole discretion, such
written legal opinions, certifications (including an investment letter in the
case of box (3) or (4) and other information as the Trustee or the Company have
reasonably requested to confirm that such transfer is being made pursuant

 

A-1-10

 

to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act
of l933, as amended.

 

If none of the
foregoing items are checked, the Trustee or Registrar shall not be obligated to
register this Note in the name of any person other than the Holder hereof
unless and until the conditions to any such transfer of registration set forth
herein and in Section 2.16 of the Indenture shall have been satisfied.

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as name appears

  on the other side of this Note)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  
						

 

TO BE
COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

 

The
undersigned represents and warrants that it is purchasing this Note for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act of 1933, as amended,
and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying
upon the undersigned’s foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE:

  	
  To be executed by an

  executive officer

  
						

 

A-1-11

 

OPTION OF
HOLDER TO ELECT PURCHASE

 

If you want to
elect to have this Note purchased by the Company pursuant to Section 4.14 or
Section 4.15 of the Indenture, check the appropriate box:

 

Section 4.14 o
Section 4.15 o

 

If you want to
elect to have only part of this Note purchased by the Company pursuant to
Section 4.14 or Section 4.15 of the Indenture, state the amount: $                

 

	
  Dated:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your

  name appears on the other

  side of this  Note)

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  
	
   

  	
  Participant in a recognized Signature

  Guarantee Medallion Program (or other

  signature guarantor program reasonably

  acceptable to the Trustee)

  
						

 

A-1-12

 

EXHIBIT A-2

 

[FORM OF
RESTRICTED EURO NOTE]

 

THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY
ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY
MAY NOT BE OFFERED, SOLD OR OTHERWISE 
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS NOTIFIED THAT THE
SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF
SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. BY ITS
ACQUISITION HEREOF, THE HOLDER OF THIS SECURITY (1) REPRESENTS THAT (A) IT IS A
“QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT.

 

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT
OF HUNTSMAN INTERNATIONAL LLC THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO HUNTSMAN INTERNATIONAL LLC OR ITS
SUBSIDIARIES, (II) INSIDE THE UNITED STATES TO A PERSON WHO THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (III) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE
WITH RULE 904 UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE) OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, IN EACH OF CASES (I) THROUGH (V) IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

A-2-1

 

HUNTSMAN
INTERNATIONAL LLC

 

7 1⁄2% Senior
Subordinated Note due 2015

 

	
  No.

  	
  EU

  	
   

  
	
  ISIN

  	
   

  

 

HUNTSMAN
INTERNATIONAL LLC, a Delaware limited liability company (the “Company”), for
value received, promises to pay to            
or registered assigns, the principal sum of              ,
on January 1, 2015.

 

Interest
Payment Dates:  January 1 and July 1

 

Record
Dates:  December 15 and June 15

 

Reference is
made to the further provisions of this Note contained herein, which will for
all purposes have the same effect as if set forth at this place.

 

A-2-2

 

IN WITNESS
WHEREOF, the Company has caused this Note to be signed manually or by facsimile
by its duly authorized officer.

 

	
  Dated:

  	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Certificate of
Authentication

 

This is one of
the 7 1⁄2% Senior Subordinated Notes due 2015 referred to in the within-mentioned
Indenture.

 

Dated:

 

	
   

  	
  Citibank, N.A., as authentication agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  

 

A-2-3

 

(REVERSE OF
EURO NOTE)

 

7 1⁄2%  Senior Subordinated Note due 2015

 

1.  Interest.  HUNTSMAN INTERNATIONAL LLC, a Delaware
limited liability company (the “Company”), promises to pay interest on the
principal amount of this Euro Note at the rate per annum shown above.  Interest on the Euro Notes will accrue from
the most recent date on which interest has been paid or, if no interest has
been paid, from December 17, 2004.  The
Company will pay interest semi- annually in arrears on each January 1 and July
1 (each, an “Interest Payment Date”) and at stated maturity, commencing on July
1, 2005.  Interest will be computed on
the basis of a 360-day year comprised of twelve 30-day months.

 

The Company
shall pay interest on overdue principal and on overdue installments of interest
from time to time on demand at the rate borne by the Euro Notes (without regard
to any applicable grace periods) to the extent lawful.

 

2.  Method of Payment.  The Company shall pay interest on the Euro
Notes (except defaulted interest) to the Persons who are the registered Holders
at the close of business on the Record Date immediately preceding the Interest
Payment Date even if the Euro Notes are cancelled on registration of transfer
or registration of exchange after such Record Date.  Holders must surrender Euro Notes to a Paying
Agent to collect principal payments.  The
Company shall pay principal, premium and interest on the Euro Notes in
euros.  However, the Company may pay
principal, premium and interest by its check payable in euros.  The Company may deliver any such interest
payment to the Euro Paying Agent or to a Holder at the Holder’s registered
address.

 

3.  Paying Agent and Registrar.  Initially, Citibank, N.A. will act as Paying
Agent for the Euro Notes and Citigroup Global Markets Deutschland AG & Co.
KGaA will act as Registrar for the Euro Notes. 
The Company may change any Paying Agent, Registrar or co-Registrar
without notice to the Holders.  The
Company or any of its Subsidiaries may, subject to certain exceptions, act as
Registrar or co-Registrar.

 

4.  Indenture.  The Company issued the Euro Notes under an
Indenture, dated as of December 17, 2004 (the “Indenture”), among the Company,
each of the Guarantors named therein and the Trustee.  This Euro Note is one of a duly authorized
issue of Euro Notes of the Company designated as its euro denominated 7 1⁄2%
Senior Subordinated Notes due 2015 (the “Euro Notes”) which may be issued under
the Indenture.  The Company shall be
entitled to issue Additional Notes pursuant to Section 2.18 of the
Indenture.  The Euro Notes and the
Company’s dollar denominated 7 3⁄8% 
Senior Subordinated Notes due 2015 (the “Dollar Notes” and, together
with the Euro Notes, the “Notes”) and any Additional Notes and any Exchange
Notes issued in accordance with the Indenture are treated as a single class of
securities under the Indenture unless otherwise specified in the
Indenture.  Capitalized terms used herein
shall have the meanings assigned to them in the Indenture unless otherwise
defined herein.  The terms of the Notes
include those stated in the Indenture and those made part of the

 

A-2-4

 

Indenture by reference to the
Trust Indenture Act of 1939 (15 U.S.C. 
§§ 77aaa-77bbbb) (the “TIA”), as in effect on the date of the
Indenture.  Notwithstanding anything to
the contrary herein, the Notes are subject to all such terms, and Holders of
Notes are referred to the Indenture and the TIA for a statement of them.  The Notes are senior subordinated unsecured
obligations of the Company.

 

5.  Optional Redemption.  (a) The Euro Notes will be redeemable, at
the- Company’s option, in whole at any time or in part from time to time, on
and after January 1, 2010, upon not less than 30 nor more than 60 days’ notice,
at the following redemption prices (expressed as percentages of the principal
amount thereof) if redeemed during the twelve-month period commencing on
January 1 of the year set forth below, plus, in each case, accrued and unpaid
interest thereon, if any, to the date of redemption:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  103.750

  	
  %

  
	
  2011

  	
   

  	
  102.500

  	
  %

  
	
  2012

  	
   

  	
  101.250

  	
  %

  
	
  2013 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)  At any time, or from time to time, prior to
January 1, 2008, the Company may, at its option, use the net cash proceeds of
one or more Equity Offerings (as defined below) to redeem up to 40% of the
aggregate principal amount of Euro Notes originally issued (including the
original principal amount of any Additional Euro Notes) at a redemption price
equal to 107.500% of the principal amount thereof plus accrued and unpaid
interest thereon, if any, to the date of redemption; provided, however,
that at least 60% of the aggregate principal amount of the Notes originally
issued remain (including the principal amount of any Additional Notes)
outstanding immediately after any such redemption.  In order to effect the foregoing redemption
with the proceeds of any Equity Offering, the Company shall make such
redemption not more than 120 days after the consummation of any such Equity
Offering.

 

(c)  At any time prior to January 1, 2010, the
Euro Notes may be redeemed, in whole or in part, at the option of the Company,
upon not less than 30 nor more than 60 days’ notice, at a redemption price (the
“Make-Whole Price”) equal to the greater of (i) 100.000% of the principal
amount thereof or (ii) as determined by an Independent Investment Banker, the
present value of (A) 103.750% of the Euro Notes being redeemed as of January 1,
2010 plus (B) all required interest payments due on such Euro Notes through
January 1, 2010 (excluding accrued interest), discounted to the Redemption Date
on a semiannual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Adjusted Bund Rate plus, in each case, accrued interest to the
Redemption Date.

 

6.  Notice of Redemption.  Notice of redemption will be mailed at least
30 days but not more than 60 days before the Redemption Date to each Holder
whose Euro Notes are to be redeemed at such Holder’s registered address, except
as provided in the Indenture.  Euro Notes
in denominations larger than  €1,000 may
be redeemed in part.

 

A-2-5

 

7.  Change of Control Offer.  In the event of a Change of Control, upon the
satisfaction of the conditions set forth in the Indenture, the Company shall be
required to offer to repurchase all of the then outstanding Notes pursuant to a
Change of Control Offer at a purchase price equal to 101% of the principal
amount thereof plus accrued and unpaid interest, if any, to the date of
purchase.  Holders of Notes that are the
subject of such an offer to repurchase shall receive an offer to repurchase and
may elect to have such Notes repurchased in accordance with the provisions of
the Indenture pursuant to and in accordance with the terms of the Indenture.

 

8.  Limitation on Asset Sales.  Under certain circumstances set forth in
Section 4.15 of the Indenture, the Company is required to apply the net
proceeds from Asset Sales to offer to repurchase the Notes at a price equal to
100% of the principal amount thereof plus accrued and unpaid interest thereon,
if any, to the date of repurchase.

 

9.  Denominations; Transfer; Exchange.  The Euro Notes are in fully registered form
only, without coupons, in denominations of 
€1,000 and integral multiples of 
€1,000.  A Holder shall register
the transfer or exchange of Notes in accordance with the Indenture.  The Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and to
pay certain transfer taxes or similar governmental charges payable in connection
therewith as permitted by the Indenture. 
The Registrar need not register the transfer or exchange of any Notes
during a period beginning 15 days before the mailing of a redemption notice for
any Notes or portions thereof selected for redemption.

 

10.  Persons Deemed Owners.  The registered Holder of a Note shall be
treated as the owner of it for all purposes.

 

11.  Unclaimed Money.  If money for the payment of principal or
interest remains unclaimed for one year, the Trustee and the Paying Agent will
pay the money back to the Company.  After
that, all liability of the Trustee and such Paying Agent with respect to such
money shall cease.

 

12.  Discharge Prior to Redemption or
Maturity.  If the Company at any time
deposits with the Trustee euros or non-callable Euro Obligations sufficient to
pay the principal of, premium and interest on the Euro Notes to redemption or
maturity and complies with the other provisions of this Indenture relating
thereto, the Company will be discharged from certain provisions of the
Indenture and the Euro Notes (including certain covenants, but excluding its
obligation to pay the principal of, premium and interest on the Euro Notes).

 

13.  Amendment; Supplement; Waiver.  The Indenture or the Notes may be amended or
supplemented as provided in the Indenture.

 

14.  Restrictive Covenants.  The Indenture imposes certain limitations on
the ability of the Company and its Subsidiaries to, among other things, incur
additional Indebtedness, pay dividends or make certain other restricted
payments, enter into transactions with Affiliates, create dividend or other
payment restrictions affecting

 

A-2-6

 

Restricted Subsidiaries and
merge or consolidate with any other Person, sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its assets or adopt
a plan of liquidation.  Such limitations
are subject to a number of important qualifications and exceptions.  The Company must annually report to the
Trustee on compliance with such limitations.

 

15.  Successors.  When a successor assumes, in accordance with
this- Indenture, all the obligations of its predecessor under the Notes and the
Indenture, the predecessor will be released from those obligations.

 

16.  Defaults and Remedies.  If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes (including any Additional Notes) may declare all the
Notes to be due and payable in the manner, at the time and with the effect
provided in the Indenture.  Holders of
Notes may not enforce the Indenture or the Notes except as provided in the
Indenture.  The Trustee is not obligated
to enforce the Indenture or the Notes unless it has been offered indemnity or
security reasonably satisfactory to it. 
The Indenture permits, subject to certain limitations therein provided,
Holders of a majority in aggregate principal amount of the Notes (including any
Additional Notes) then outstanding to direct the Trustee in its exercise of any
trust or power.  The Trustee may withhold
from Holders of Notes notice of any continuing Default or Event of Default
(except a Default in payment of principal or interest) if it determines in good
faith that withholding notice is in their interest.

 

17.  Trustee Dealings with Company.  The Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with the Company, its Restricted and Unrestricted
Subsidiaries or their respective Affiliates as if it were not the Trustee.

 

18.  No Recourse Against Others.  No past, present or future stockholder,
director, officer, employee or incorporator, as such, of the Company shall have
any liability for any obligation of the Company under the Notes or the
Indenture or for any claim based on, in respect of or by reason of, such
obligations or their creation.  Each
Holder of a Note by accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for the issuance of the Notes.

 

19.  Authentication.  This Note shall not be valid until the
Trustee or authenticating agent manually signs the certificate of
authentication on this Note.

 

20.  Governing Law.  This Note shall be governed by, and construed
in- accordance with, the laws of the State of New York.

 

21.  Abbreviations and Defined Terms.  Customary abbreviations may be- used in the
name of a Holder of a Note or an assignee, such as: TEN COM (= tenants in
common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with
right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

 

A-2-7

 

22.  CUSIP/ISIN Numbers.  The Company may cause CUSIP and/or ISIN
numbers to be printed on the Notes as a convenience to the Holders of the
Notes.  No representation is made as to
the accuracy of such numbers as printed on the Notes and reliance may be placed
only on the other identification numbers printed hereon.

 

23.  Registration Rights.  Pursuant to the Registration Rights
Agreement, the Company and the Guarantors will be obligated upon the occurrence
of certain events and subject to certain conditions to consummate an exchange
offer pursuant to which the Holder of this Euro Note shall have the right to
exchange this Euro Note for a 71⁄2% Senior Subordinated Note due 2015 denominated
in euros of the Company (an “Unrestricted Euro Note”) which have been
registered under the Securities Act, in like principal amount and having terms
identical in all material respects as this Euro Note.  The Holders shall be entitled to receive
certain additional interest payments in the event such exchange offer is not
consummated and upon certain other conditions, all pursuant to and in
accordance with the terms of the Registration Rights Agreement.

 

24.  Indenture.  Each Holder, by accepting a Note, agrees to
be bound by all of the terms and provisions of the Indenture, as the same may
be amended from time to time. 
Capitalized terms used herein and not defined herein have the meanings
ascribed thereto in the Indenture

 

25.  Guarantees.  This Note will be entitled to the benefits of
certain senior subordinated Guarantees made for the benefit of the Holders.  Reference is hereby made to the Indenture for
a statement of the respective rights, limitations of rights, duties and
obligations thereunder of the Guarantors, the Trustee and the Holders.

 

The Company
will furnish to any Holder of a Note upon written request and without charge a
copy of the Indenture.  Requests may be
made to: HUNTSMAN INTERNATIONAL LLC, 500 Huntsman Way, Salt Lake City, Utah
84108, Attention: Office of General Counsel.

 

A-2-8

 

[FORM OF ASSIGNMENT]

 

I or we assign to

 

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER

 

	
   

  	
   

  
	
   

  
	
   

  
	
  (please print or type name and address)

  
	
   

  
	
   

  
	
   

  
	
   

  

the within Note and all rights thereunder, and hereby irrevocably
constitutes and appoints

 

	
   

  

attorney to transfer the Note on the books of the Company with full
power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE: The signature on this assignment
  must correspond with the name as it appears upon the face of the within Note
  in every particular without alteration or enlargement or any change
  whatsoever and be guaranteed by the endorser’s bank or broker.

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
						

 

A-2-9

 

In connection
with any transfer of this Note occurring prior to the date of the declaration
by the Commission of the effectiveness of a registration statement under the
Securities Act of 1933, as amended (the “Securities Act”) covering resales of
this Note (which effectiveness shall not have been suspended or terminated at the
date of the transfer) the undersigned confirms that it has not utilized any
general solicitation or general advertising in connection with the transfer and
that the sale is being made:

 

	
  [Check One]

  
	
   

  
	
  (1)

  	
  o

  	
  to the Company or a subsidiary thereof; or

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  o

  	
  pursuant to and in compliance with Rule
  144A under the Securities Act of 1933, as amended; or

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  o

  	
  to an institutional “accredited investor”
  (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act of
  1933, as amended) that has furnished to the Trustee a signed letter
  containing certain representations and agreements (the form of which letter
  can be obtained from the Trustee); or

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  o

  	
  outside the United States to a “foreign
  purchaser” in compliance with Rule 904 of Regulation S under the Securities
  Act of 1933, as amended; or

  
	
   

  	
   

  	
   

  
	
  (5)

  	
  o

  	
  pursuant to the exemption from registration
  provided by Rule 144 under the Securities Act of 1933, as amended; or

  
	
   

  	
   

  	
   

  
	
  (6)

  	
  o

  	
  pursuant to an effective registration
  statement under the Securities Act of 1933, as amended; or

  
	
   

  	
   

  	
   

  
	
  (7)

  	
  o

  	
  pursuant to another available exemption
  from the registration statement requirements of the Securities Act of 1933,
  as amended,

  
	
   

  	
   

  	
   

  
	 
	
  and, unless the box below is checked, the
  undersigned confirms that Note is not being transferred to an “affiliate” of
  the Company as defined in Rule 144 under the Securities Act of 1933, as
  amended (an “Affiliate”):

  
	 
	
   

  
	
   

  	
  o

  	
  The transferee is an Affiliate of the
  Company.

  
				

 

Unless one of
the items is checked, the Trustee will refuse to register any of the Notes
evidenced by this certificate in the name of any person other than the
registered Holder thereof; provided, however, that if item (3),
(4), (5) or (7) is checked, the Company or the Trustee may require, prior to
registering any such transfer of the Notes, in their sole discretion, such
written legal opinions, certifications (including an investment letter in the
case of box (3) or (4) and other information as the Trustee or the Company have
reasonably requested to confirm that such transfer is being made pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of l933, as amended.

 

A-2-10

 

If none of the
foregoing items are checked, the Trustee or Registrar shall not be obligated to
register this Note in the name of any person other than the Holder hereof
unless and until the conditions to any such transfer of registration set forth
herein and in Section 2.16 of the Indenture shall have been satisfied.

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as name appears

  on the other side of this Note)

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  
						

 

TO BE
COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

 

The
undersigned represents and warrants that it is purchasing this Note for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional
buyer” within the meaning of Rule 144A under the Securities Act of 1933, as
amended, and is aware that the sale to it is being made in reliance on Rule
144A and acknowledges that it has received such information regarding the
Company as the undersigned has requested pursuant to Rule 144A or has
determined not to request such information and that it is aware that the
transferor is relying upon the undersigned’s foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE:

  	
  To be executed by an

  executive officer

  
						

 

A-2-11

 

OPTION OF
HOLDER TO ELECT PURCHASE

 

If you want to
elect to have this Note purchased by the Company pursuant to Section 4.14
or Section 4.15 of the Indenture, check the appropriate box:

 

Section 4.14
o Section 4.15
o

 

If you want to
elect to have only part of this Note purchased by the Company pursuant to Section 4.14
or Section 4.15 of the Indenture, state the amount: 
EU                    

 

	
  Dated:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your

  name appears on the other

  side of this Note)

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  
	
   

  	
  Participant in a recognized Signature
  Guarantee Medallion

  Program (or other signature guarantor program reasonably

  acceptable to the Trustee)

  
						

 

A-2-12

 

EXHIBIT A-3

 

[FORM OF
UNRESTRICTED DOLLAR NOTE]

 

HUNTSMAN
INTERNATIONAL LLC

 

73⁄8%
Senior Subordinated Note due 2015

 

 

	
  No.

  	
  $

  	
  [             ]

  
	
  CUSIP

  	
   

  

 

HUNTSMAN
INTERNATIONAL LLC, a Delaware limited liability company (the “Company”), for
value received, promises to pay
to                 
or registered assigns, the principal sum of           ,
on January 1, 2015.

 

Interest
Payment Dates:  January 1 and July 1

 

Record
Dates:  December 15 and June 15

 

Reference is
made to the further provisions of this Note contained herein, which will for
all purposes have the same effect as if set forth at this place.

 

A-3-1

 

IN WITNESS
WHEREOF, the Company has caused this Note to be signed manually or by facsimile
by its duly authorized officer.

 

	
   

  	
  Dated:             HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Certificate of
Authentication

 

This is one of
the 73⁄8% Senior Subordinated Notes due 2015 referred to in the
within-mentioned Indenture.

 

Dated:

 

	
   

  	
  Wells Fargo Bank, National Association, as

  Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  

 

A-3-2

 

(REVERSE OF
DOLLAR NOTE)

 

73⁄8%
Senior Subordinated Note due 2015

 

1.  Interest.  HUNTSMAN INTERNATIONAL LLC, a Delaware
limited liability company (the “Company”), promises to pay interest on the
principal amount of this Dollar Note at the rate per annum shown above.  Interest on the Dollar Notes will accrue from
the most recent date on which interest has been paid or, if no interest has
been paid, from December 17, 2004. 
The Company will pay interest semi-annually in arrears on each January 1
and July 1 (each, an “Interest Payment Date”) and at stated maturity,
commencing on July 1, 2005. 
Interest will be computed on the basis of a 360-day year comprised of
twelve 30-day months.

 

The Company
shall pay interest on overdue principal and on overdue installments of interest
from time to time on demand at the rate borne by the Dollar Notes (without
regard to any applicable grace periods) to the extent lawful.

 

2.  Method of Payment.  The Company shall pay interest on the Dollar
Notes (except defaulted interest) to the Persons who are the registered Holders
at the close of business on the Record Date immediately preceding the Interest
Payment Date even if the Dollar Notes are cancelled on registration of transfer
or registration of exchange after such Record Date.  Holders must surrender Dollar Notes to a
Paying Agent to collect principal payments. 
The Company shall pay principal, premium and interest in money of the
United States that at the time of payment is legal tender for payment of public
and private debts (“U.S. Legal Tender”). 
However, the Company may pay principal, premium and interest by its
check payable in such U.S. Legal Tender. 
The Company may deliver any such interest payment to the Paying Agent or
to a Holder at the Holder’s registered address.

 

3.  Paying Agent and Registrar.  Initially, Wells Fargo Bank, National
Association  (the “Trustee”) will act as
Paying Agent and Registrar.  The Company
may change any Paying Agent, Registrar or co-Registrar without notice to the
Holders.  The Company or any of its
Subsidiaries may, subject to certain exceptions, act as Registrar or
co-Registrar.

 

4.  Indenture.  The Company issued the Dollar Notes under an
Indenture, dated as of December 17, 2004 (the “Indenture”), among the
Company, each of the Guarantors named therein and the Trustee.  This Dollar Note is one of a duly authorized
issue of Dollar Notes of the Company designated as its dollar denominated
73⁄8% Senior Subordinated Notes due 2015 (the “Dollar Notes”) which may be
issued under the Indenture.  The Company
shall be entitled to issue Additional Notes pursuant to Section 2.18 of
the Indenture.  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”) and any Additional
Notes and any Exchange Notes issued in accordance with the Indenture are
treated as a single class of securities under the Indenture unless otherwise
specified in the Indenture.  Capitalized
terms used herein shall

 

A-3-3

 

have the meanings assigned to them in the Indenture unless otherwise
defined herein.  The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C.  §§ 77aaa-77bbbb) (the “TIA”), as in
effect on the date of the Indenture. 
Notwithstanding anything to the contrary herein, the Notes are subject
to all such terms, and Holders of Notes are referred to the Indenture and the
TIA for a statement of them.  The Notes
are senior subordinated unsecured obligations of the Company.

 

5.  Optional Redemption.  (a) The Dollar Notes will be redeemable, at
the- Company’s option, in whole at any time or in part from time to time, on
and after January 1, 2010, upon not less than 30 nor more than 60 days’
notice, at the following redemption prices (expressed as percentages of the
principal amount thereof) if redeemed during the twelve-month period commencing
on January 1 of the year set forth below, plus, in each case, accrued and
unpaid interest thereon, if any, to the date of redemption:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  103.688

  	
  %

  
	
  2011

  	
   

  	
  102.458

  	
  %

  
	
  2012

  	
   

  	
  101.229

  	
  %

  
	
  2013 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)  At any time, or from time to time, prior to January 1,
2008, the Company may, at its option, use the net cash proceeds of one or more
Equity Offerings (as defined below) to redeem up to 40% of the aggregate
principal amount of Dollar Notes originally issued (including the original
principal amount of any Additional Dollar Notes) at a redemption price equal to
107.375% of the principal amount thereof plus accrued and unpaid interest
thereon, if any, to the date of redemption; provided, however,
that at least 60% of the aggregate principal amount of the Notes originally
issued remain (including the principal amount of any Additional
Notes)outstanding immediately after any such redemption.  In order to effect the foregoing redemption
with the proceeds of any Equity Offering, the Company shall make such
redemption not more than 120 days after the consummation of any such Equity
Offering.

 

(c)  At any time prior to January 1, 2010,
the Dollar Notes may be redeemed, in whole or in part at the option of the
Company, upon not less than 30 nor more than 60 days’ notice, at a redemption
price (the “Make-Whole Price”) equal to the greater of (i) 100.000% of the
principal amount thereof or (ii) as determined by an Independent Investment
Banker, the present value of (A) 103.688% of the Dollar Notes being redeemed as
of January 1, 2010 plus (B) all required interest payments due on such
Dollar Notes through January 1, 2010 (excluding accrued interest),
discounted to the Redemption Date on a semiannual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Adjusted Treasury Rate plus in
each case accrued interest to the Redemption Date.

 

6.  Notice of Redemption.  Notice of redemption will be mailed at least
30 days but not more than 60 days before the Redemption Date to each Holder
whose Dollar

 

A-3-4

 

Notes are to be redeemed at such Holder’s registered address, except as
provided in the Indenture.  Dollar Notes
in denominations larger than $1,000 may be redeemed in part.

 

7.  Change of Control Offer.  In the event of a Change of Control, upon the
satisfaction of the conditions set forth in the Indenture, the Company shall be
required to offer to repurchase all of the then outstanding Notes pursuant to a
Change of Control Offer at a purchase price equal to 101% of the principal
amount thereof plus accrued and unpaid interest, if any, to the date of
purchase.  Holders of Notes that are the
subject of such an offer to repurchase shall receive an offer to repurchase and
may elect to have such Notes repurchased in accordance with the provisions of
the Indenture pursuant to and in accordance with the terms of the Indenture.

 

8.  Limitation on Asset Sales.  Under certain circumstances set forth in Section 4.15
of the Indenture, the Company is required to apply the net proceeds from Asset
Sales to offer to repurchase the Notes at a price equal to 100% of the
principal amount thereof plus accrued and unpaid interest thereon, if any, to
the date of repurchase.

 

9.  Denominations; Transfer; Exchange.  The Dollar Notes are in fully registered form
only, without coupons, in denominations of $1,000 and integral multiples of
$1,000.  A Holder shall register the
transfer or exchange of Notes in accordance with the Indenture.  The Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and to
pay certain transfer taxes or similar governmental charges payable in
connection therewith as permitted by the Indenture.  The Registrar need not register the transfer
or exchange of any Notes during a period beginning 15 days before the mailing
of a redemption notice for any Notes or portions thereof selected for
redemption.

 

10.  Persons Deemed Owners.  The registered Holder of a Note shall be treated
as the owner of it for all purposes.

 

11.  Unclaimed Money.  If money for the payment of principal or
interest remains unclaimed for one year, the Trustee and the Paying Agent will
pay the money back to the Company.  After
that, all liability of the Trustee and such Paying Agent with respect to such
money shall cease.

 

12.  Discharge Prior to Redemption or Maturity.  If the Company at any time deposits with the
Trustee U.S. Legal Tender or non-callable U.S. Government Obligations
sufficient to pay the principal of, premium and interest on the Dollar Notes to
redemption or maturity and complies with the other provisions of this Indenture
relating thereto, the Company will be discharged from certain provisions of the
Indenture and the Dollar Notes (including certain covenants, but excluding its
obligation to pay the principal of, premium and interest on the Dollar Notes).

 

13.  Amendment; Supplement; Waiver.  The Indenture or the Notes may be amended or
supplemented as provided in the Indenture.

 

14.  Restrictive Covenants.  The Indenture imposes certain limitations on
the ability of the Company and its Subsidiaries to, among other things, incur
additional

 

A-3-5

 

Indebtedness, pay dividends or make certain other restricted payments,
enter into transactions with Affiliates, create dividend or other payment
restrictions affecting Restricted Subsidiaries and merge or consolidate with
any other Person, sell, assign, transfer, lease, convey or otherwise dispose of
all or substantially all of its assets or adopt a plan of liquidation.  Such limitations are subject to a number of
important qualifications and exceptions. 
The Company must annually report to the Trustee on compliance with such
limitations.

 

15.  Successors.  When a successor assumes, in accordance with
this- Indenture, all the obligations of its predecessor under the Notes and the
Indenture, the predecessor will be released from those obligations.

 

16.  Defaults and Remedies.  If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes (including any Additional Notes) may declare all the
Notes to be due and payable in the manner, at the time and with the effect
provided in the Indenture.  Holders of
Notes may not enforce the Indenture or the Notes except as provided in the
Indenture.  The Trustee is not obligated
to enforce the Indenture or the Notes unless it has been offered indemnity or
security reasonably satisfactory to it. 
The Indenture permits, subject to certain limitations therein provided,
Holders of a majority in aggregate principal amount of the Notes (including any
Additional Notes) then outstanding to direct the Trustee in its exercise of any
trust or power.  The Trustee may withhold
from Holders of Notes notice of any continuing Default or Event of Default
(except a Default in payment of principal or interest) if it determines in good
faith that withholding notice is in their interest.

 

17.  Trustee Dealings with Company.  The Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with the Company, its Restricted and Unrestricted
Subsidiaries or their respective Affiliates as if it were not the Trustee.

 

18.  No Recourse Against Others.  No past, present or future stockholder,
director, officer, employee or incorporator, as such, of the Company shall have
any liability for any obligation of the Company under the Notes or the
Indenture or for any claim based on, in respect of or by reason of, such
obligations or their creation.  Each
Holder of a Note by accepting a Note waives and releases all such
liability.  The waiver and release are
part of the consideration for the issuance of the Notes.

 

19.  Authentication.  This Note shall not be valid until the
Trustee or authenticating agent manually signs the certificate of
authentication on this Note.

 

20.  Governing Law.  This Note shall be governed by, and construed
in- accordance with, the laws of the State of New York.

 

21.  Abbreviations and Defined Terms.  Customary abbreviations may be- used in the
name of a Holder of a Note or an assignee, such as: TEN COM (= tenants in
common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with
right of

 

A-3-6

 

survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

 

22.  CUSIP/ISIN Numbers.  The Company may cause CUSIP and/or ISIN
numbers to be printed on the Notes as a convenience to the Holders of the
Notes.  No representation is made as to
the accuracy of such numbers as printed on the Notes and reliance may be placed
only on the other identification numbers printed hereon.

 

23.  Indenture.  Each Holder, by accepting a Note, agrees to
be bound by all of the terms and provisions of the Indenture, as the same may
be amended from time to time. 
Capitalized terms used herein and not defined herein have the meanings
ascribed thereto in the Indenture.

 

24.  Guarantees.  This Note will be entitled to the benefits of
certain senior subordinated Guarantees made for the benefit of the
Holders.  Reference is hereby made to the
Indenture for a statement of the respective rights, limitations of rights,
duties and obligations thereunder of the Guarantors, the Trustee and the
Holders.

 

The Company
will furnish to any Holder of a Note upon written request and without charge a
copy of the Indenture.  Requests may be
made to: HUNTSMAN INTERNATIONAL LLC, 500 Huntsman Way, Salt Lake City, Utah
84108, Attention: Office of General Counsel.

 

A-3-7

 

[FORM OF
ASSIGNMENT]

 

 

[FORM OF
ASSIGNMENT]

 

I or we assign to

 

PLEASE INSERT SOCIAL SECURITY OR

 

OTHER IDENTIFYING NUMBER

	
   

  	
   

  
	
   

  
	
   

  
	
  (please print or type name and address)

  
	
   

  
	
   

  
	
   

  
	
   

  

the within Note and all rights thereunder, and hereby irrevocably
constitutes and appoints

 

	
   

  

attorney to transfer the Note on the books of
the Company with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE: The signature on this assignment
  must correspond with the name as it appears upon the face of the within Note
  in every particular without alteration or enlargement or any change
  whatsoever and be guaranteed by the endorser’s bank or broker.

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
						

 

A-3-8

 

OPTION OF
HOLDER TO ELECT PURCHASE

 

If you want to
elect to have this Note purchased by the Company pursuant to Section 4.14
or Section 4.15 of the Indenture, check the appropriate box:

 

Section 4.14
[          ] Section 4.15
[          ]

 

If you want to
elect to have only part of this Note purchased by the Company pursuant to Section 4.14
or Section 4.15 of the Indenture, state the amount: 
$                    

 

	
  Dated:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name appears on the

  other side of this Note)

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  
	
   

  	
  Participant in a recognized Signature
  Guarantee Medallion

  Program (or other signature guarantor program reasonably

  acceptable to the Trustee)

  
						

 

A-3-9

EXHIBIT A-4

 

[FORM OF
UNRESTRICTED EURO NOTE]

 

HUNTSMAN
INTERNATIONAL LLC

 

71/2%
Senior Subordinated Note due 2015

 

	
  No.

  	
  EU[     ]

  

ISIN

 

HUNTSMAN
INTERNATIONAL LLC, a Delaware limited liability company (the “Company”), for
value received, promises to pay to                    
or registered assigns, the principal sum of                ,
on January 1, 2015.

 

Interest
Payment Dates:  January 1 and July 1

 

Record
Dates:  December 15 and June 15

 

Reference is
made to the further provisions of this Note contained herein, which will for
all purposes have the same effect as if set forth at this place.

 

A-4-1

 

IN WITNESS
WHEREOF, the Company has caused this Note to be signed manually or by facsimile
by its duly authorized officer.

 

	
  Dated:

  	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Certificate of
Authentication

 

This is one of
the 71/2% Senior Subordinated Notes due 2015 referred to
in the within-mentioned Indenture.

 

	
  Dated:

  
	
   

  
	
   

  	
  Citibank, N.A., as authentication agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  

 

A-4-2

 

(REVERSE OF
EURO NOTE)

 

71/2%
Senior Subordinated Note due 2015

 

1.  Interest.  HUNTSMAN INTERNATIONAL LLC, a Delaware
limited liability company (the “Company”), promises to pay interest on the
principal amount of this Euro Note at the rate per annum shown above.  Interest on the Euro Notes will accrue from
the most recent date on which interest has been paid or, if no interest has
been paid, from December 17, 2004. 
The Company will pay interest semi- annually in arrears on each January 1
and July 1 (each, an “Interest Payment Date”) and at stated maturity,
commencing on July 1, 2005. 
Interest will be computed on the basis of a 360-day year comprised of
twelve 30-day months.

 

The Company
shall pay interest on overdue principal and on overdue installments of interest
from time to time on demand at the rate borne by the Euro Notes (without regard
to any applicable grace periods) to the extent lawful.

 

2.  Method of Payment.  The Company shall pay interest on the Euro
Notes (except defaulted interest) to the Persons who are the registered Holders
at the close of business on the Record Date immediately preceding the Interest
Payment Date even if the Euro Notes are cancelled on registration of transfer
or registration of exchange after such Record Date.  Holders must surrender Euro Notes to a Paying
Agent to collect principal payments.  The
Company shall pay principal, premium and interest on the Euro Notes in
euros.  However, the Company may pay
principal, premium and interest by its check payable in euros.  The Company may deliver any such interest
payment to the Euro Paying Agent or to a Holder at the Holder’s registered
address.

 

3.  Paying Agent and Registrar.  Initially Citibank, N.A. will act as Paying
Agent for the Euro Notes and Citigroup Global Markets Deutschland AG & Co
KGaA will act as Registrar for the Euro Notes. 
The Company may change any Paying Agent, Registrar or co-Registrar
without notice to the Holders.  The
Company or any of its Subsidiaries may, subject to certain exceptions, act as
Registrar or co-Registrar.

 

4.  Indenture.  The Company issued the Euro Notes under an
Indenture, dated as of December 17, 2004 (the “Indenture”), among the
Company, each of the Guarantors named therein and the Trustee.  This Euro Note is one of a duly authorized
issue of Euro Notes of the Company designated as its euro denominated 71/2%
Senior Subordinated Notes due 2015 (the “Euro Notes”) which may be issued under
the Indenture.  The Company shall be
entitled to issue Additional Notes pursuant to Section 2.18 of the
Indenture.  The Euro Notes and the
Company’s dollar denominated 73/8% Senior Subordinated
Notes due 2015 (the “Dollar Notes” and, together with the Euro Notes, the “Notes”)
and any Additional Notes and any Exchange Notes issued in accordance with the
Indenture are treated as a single class of securities under the Indenture
unless otherwise specified in the Indenture. 
Capitalized terms used herein shall have the meanings assigned to them
in the Indenture unless otherwise defined herein.  The terms of the Notes include those stated
in the Indenture and those made part of the

 

A-4-3

 

Indenture by reference to the Trust Indenture Act of 1939 (15
U.S.C.  §§ 77aaa-77bbbb) (the “TIA”),
as in effect on the date of the Indenture. 
Notwithstanding anything to the contrary herein, the Notes are subject
to all such terms, and Holders of Notes are referred to the Indenture and the
TIA for a statement of them.  The Notes
are senior subordinated unsecured obligations of the Company.

 

5.  Optional Redemption.  (a) The Euro Notes will be redeemable, at
the- Company’s option, in whole at any time or in part from time to time, on
and after January 1, 2010, upon not less than 30 nor more than 60 days’
notice, at the following redemption prices (expressed as percentages of the
principal amount thereof) if redeemed during the twelve-month period commencing
on January 1 of the year set forth below, plus, in each case, accrued and
unpaid interest thereon, if any, to the date of redemption:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  103.750

  	
  %

  
	
  2011

  	
   

  	
  102.500

  	
  %

  
	
  2012

  	
   

  	
  101.250

  	
  %

  
	
  2013 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)  At any time, or from time to time, prior to January 1,
2008, the Company may, at its option, use the net cash proceeds of one or more
Equity Offerings (as defined below) to redeem up to 40% of the aggregate
principal amount of Euro Notes originally issued (including the original principal
amount of any Additional Euro Notes) at a redemption price equal to 107.500% of
the principal amount thereof plus accrued and unpaid interest thereon, if any,
to the date of redemption; provided, however, that at least 60%
of the aggregate principal amount of the Notes originally issued remain
(including the principal amount of any Additional Notes) outstanding
immediately after any such redemption. 
In order to effect the foregoing redemption with the proceeds of any
Equity Offering, the Company shall make such redemption not more than 120 days
after the consummation of any such Equity Offering.

 

(c)  At any time prior to January 1, 2010,
the Euro Notes may be redeemed, in whole or in part, at the option of the
Company, upon not less than 30 nor more than 60 days’ notice, at a redemption
price (the “Make-Whole Price”) equal to the greater of (i) 100.000% of the
principal amount thereof or (ii) as determined by an Independent Investment
Banker, the present value of (A) 103.750% of the Euro Notes being redeemed as
of January 1, 2010 plus (B) all required interest payments due on such
Euro Notes through January 1, 2010 (excluding accrued interest),
discounted to the Redemption Date on a semiannual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Adjusted Bund Rate plus in each
case accrued interest to the Redemption Date.

 

6.  Notice of Redemption.  Notice of redemption will be mailed at least
30 days but not more than 60 days before the Redemption Date to each Holder
whose Euro Notes are to be redeemed at such Holder’s registered address, except
as provided in the Indenture.  Euro Notes
in denominations larger than €1,000 may be redeemed in part.

 

A-4-4

 

7.  Change of Control Offer.  In the event of a Change of Control, upon the
satisfaction of the conditions set forth in the Indenture, the Company shall be
required to offer to repurchase all of the then outstanding Notes pursuant to a
Change of Control Offer at a purchase price equal to 101% of the principal
amount thereof plus accrued and unpaid interest, if any, to the date of
purchase.  Holders of Notes that are the
subject of such an offer to repurchase shall receive an offer to repurchase and
may elect to have such Notes repurchased in accordance with the provisions of
the Indenture pursuant to and in accordance with the terms of the Indenture.

 

8.  Limitation on Asset Sales.  Under certain circumstances set forth in Section 4.15
of the Indenture, the Company is required to apply the net proceeds from Asset
Sales to offer to repurchase the Notes at a price equal to 100% of the
principal amount thereof plus accrued and unpaid interest thereon, if any, to
the date of repurchase.

 

9.  Denominations; Transfer; Exchange.  The Euro Notes are in fully registered form
only, without coupons, in denominations of €1,000 and integral multiples of
€1,000.  A Holder shall register the
transfer or exchange of Notes in accordance with the Indenture.  The Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and to
pay certain transfer taxes or similar governmental charges payable in
connection therewith as permitted by the Indenture.  The Registrar need not register the transfer
or exchange of any Notes during a period beginning 15 days before the mailing
of a redemption notice for any Notes or portions thereof selected for
redemption.

 

10.  Persons Deemed Owners.  The registered Holder of a Note shall be
treated as the owner of it for all purposes.

 

11.  Unclaimed Money.  If money for the payment of principal or
interest remains unclaimed for one year, the Trustee and the Paying Agent will
pay the money back to the Company.  After
that, all liability of the Trustee and such Paying Agent with respect to such
money shall cease.

 

12.  Discharge Prior to Redemption or Maturity.  If the Company at any time deposits with the
Trustee euros or non-callable Euro Obligations sufficient to pay the principal
of, premium and interest on the Euro Notes to redemption or maturity and
complies with the other provisions of this Indenture relating thereto, the
Company will be discharged from certain provisions of the Indenture and the
Euro Notes (including certain covenants, but excluding its obligation to pay the
principal of, premium and interest on the Euro Notes).

 

13.  Amendment; Supplement; Waiver.  The Indenture or the Notes may be amended or
supplemented as provided in the Indenture.

 

14.  Restrictive Covenants.  The Indenture imposes certain limitations on
the ability of the Company and its Subsidiaries to, among other things, incur
additional Indebtedness, pay dividends or make certain other restricted
payments, enter into transactions with Affiliates, create dividend or other
payment restrictions affecting

 

A-4-5

 

Restricted Subsidiaries and merge or consolidate with any other Person,
sell, assign, transfer, lease, convey or otherwise dispose of all or
substantially all of its assets or adopt a plan of liquidation.  Such limitations are subject to a number of
important qualifications and exceptions. 
The Company must annually report to the Trustee on compliance with such
limitations.

 

15.  Successors.  When a successor assumes, in accordance with
this- Indenture, all the obligations of its predecessor under the Notes and the
Indenture, the predecessor will be released from those obligations.

 

16.  Defaults and Remedies.  If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes (including any Additional Notes) may declare all the
Notes to be due and payable in the manner, at the time and with the effect
provided in the Indenture.  Holders of
Notes may not enforce the Indenture or the Notes except as provided in the
Indenture.  The Trustee is not obligated
to enforce the Indenture or the Notes unless it has been offered indemnity or
security reasonably satisfactory to it. 
The Indenture permits, subject to certain limitations therein provided,
Holders of a majority in aggregate principal amount of the Notes (including any
Additional Notes) then outstanding to direct the Trustee in its exercise of any
trust or power.  The Trustee may withhold
from Holders of Notes notice of any continuing Default or Event of Default
(except a Default in payment of principal or interest) if it determines in good
faith that withholding notice is in their interest.

 

17.  Trustee Dealings with Company.  The Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with the Company, its Restricted and Unrestricted
Subsidiaries or their respective Affiliates as if it were not the Trustee.

 

18.  No Recourse Against Others.  No past, present or future stockholder,
director, officer, employee or incorporator, as such, of the Company shall have
any liability for any obligation of the Company under the Notes or the
Indenture or for any claim based on, in respect of or by reason of, such obligations
or their creation.  Each Holder of a Note
by accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for the issuance of the Notes.

 

19.  Authentication.  This Note shall not be valid until the
Trustee or authenticating agent manually signs the certificate of
authentication on this Note.

 

20.  Governing Law.  This Note shall be governed by, and construed
in- accordance with, the laws of the State of New York.

 

21.  Abbreviations and Defined Terms.  Customary abbreviations may be- used in the
name of a Holder of a Note or an assignee, such as: TEN COM (= tenants in
common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with
right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

 

A-4-6

 

22.  CUSIP/ISIN Numbers.  The Company may cause CUSIP and/or ISIN
numbers to be printed on the Notes as a convenience to the Holders of the
Notes.  No representation is made as to
the accuracy of such numbers as printed on the Notes and reliance may be placed
only on the other identification numbers printed hereon.

 

23.  Indenture.  Each Holder, by accepting a Note, agrees to
be bound by all of the terms and provisions of the Indenture, as the same may
be amended from time to time. 
Capitalized terms used herein and not defined herein have the meanings
ascribed thereto in the Indenture.

 

24.  Guarantees.  This Note will be entitled to the benefits of
certain senior subordinated Guarantees made for the benefit of the
Holders.  Reference is hereby made to the
Indenture for a statement of the respective rights, limitations of rights,
duties and obligations thereunder of the Guarantors, the Trustee and the
Holders.

 

The Company
will furnish to any Holder of a Note upon written request and without charge a
copy of the Indenture.  Requests may be
made to: HUNTSMAN INTERNATIONAL LLC, 500 Huntsman Way, Salt Lake City, Utah
84108, Attention: Office of General Counsel.

 

A-4-7

 

[FORM OF
ASSIGNMENT]

 

I or we assign
to

 

PLEASE INSERT
SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER

 

	
   

  
	
  (please
  print or type name and address)

  
	
   

  
	
   

  
	
   

  

the within
Note and all rights thereunder, and hereby irrevocably constitutes and appoints

 

	
   

  

attorney to
transfer the Note on the books of the Company with full power of substitution
in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE: The signature on this assignment
  must

  
	
   

  	
  correspond with the name as it appears upon
  the

  
	
   

  	
  face of the within Note in every particular

  
	
   

  	
  without alteration or enlargement or any
  change

  
	
   

  	
  whatsoever and be guaranteed by the
  endorser’s

  
	
   

  	
  bank or broker.

  

 

	
  Signature Guarantee:

  	
   

  

 

A-4-8

 

OPTION OF
HOLDER TO ELECT PURCHASE

 

If you want to
elect to have this Note purchased by the Company pursuant to Section 4.14
or Section 4.15 of the Indenture, check the appropriate box:

 

Section 4.14
[          ] Section 4.15
[          ]

 

If you want to
elect to have only part of this Note purchased by the Company pursuant to Section 4.14
or Section 4.15 of the Indenture, state the amount:  EU

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the

  
	
   

  	
  other side of this Note)

  
	
   

  
	
  Signature Guarantee:

  	
   

  
	
   

  	
  Participant in a recognized Signature
  Guarantee Medallion

  
	
   

  	
  Program (or other signature guarantor
  program reasonably

  
	
   

  	
  acceptable to the Trustee)

  
						

 

A-4-9

 

EXHIBIT B

 

FORM OF LEGEND
FOR GLOBAL SECURITY

 

Any Global
Security authenticated and delivered hereunder shall bear a legend (which would
be in addition to any other legends required in the case of a Restricted
Security) in substantially the following form:

 

THIS NOTE IS A
GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY OR A
SUCCESSOR DEPOSITORY.  THIS NOTE IS NOT
EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY
OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE,
AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY
THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY
TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY, TO
THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF THE DEPOSITORY OR A
NOMINEE OF THE DEPOSITORY OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY (AND ANY PAYMENT IS MADE TO ITS
NOMINEE OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, A NOMINEE OF THE DEPOSITORY, HAS AN INTEREST HEREIN.

 

TRANSFERS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART,
TO NOMINEES OF THE DEPOSITORY OR ITS NOMINEE OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE.

 

B-1

 

EXHIBIT C-1

 

FORM OF
TRANSFER CERTIFICATE

RESTRICTED GLOBAL SECURITY TO

REGULATION S GLOBAL SECURITY

 

(Transfers
pursuant to Sections 2.16(a)(ii) of the Indenture)

 

Wells Fargo Bank, National Association

Sixth Street and Marquette Avenue

MAC N9303-120

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services

 

Citibank, N.A.

5 Carmelite Street

London EC4Y 0PA

Attention: Bond Agency

 

Huntsman International LLC

500 Huntsman Way

Salt Lake City, Utah 84108

Attention:  Secretary

Attention: Corporate Trust Services

 

Re:                               Huntsman
International LLC 73/8% Dollar-Denominated Senior

Subordinated Notes due 2015 [71/2% Euro-Denominated Senior

Subordinated Notes due 2015] (the “Securities”)

 

Reference is
hereby made to the Indenture, dated as of December 17, 2004 between the
Company and Wells Fargo Bank, National Association, as trustee, (the “Indenture”).  Terms used but not defined herein and defined
in Regulation S under the U.S. Securities Act of 1933 (the “Securities Act”) or
in the Indenture shall have the meanings given to them in Regulation S or the
Indenture, as the case may be.

 

This
certificate relates to U.S.$          
principal amount of Securities, which are evidenced by the following
certificate(s) (the “Specified Securities”):

 

[CUSIP][CINS][ISIN]
No(s). 

 

CERTIFICATE
No(s). 

 

The person in
whose name this certificate is executed below (the “Undersigned”) hereby
certifies that either (i) it is the sole beneficial owner of the Specified
Securities or (ii) it is acting on behalf of all the beneficial owners of the
Specified Securities and is duly 

 

C-1-1

 

authorized by
them to do so.  Such beneficial owner or
owners are referred to herein collectively as the “Owner”.  If the Specified Securities are represented
by a Global Security, they are held through the appropriate Depositary or an
Agent Member in the name of the Undersigned, as or on behalf of the Owner.

 

The Owner has
requested that the Specified Securities be transferred to a person (the “Transferee”)
who will take delivery in the form of an interest in the Regulation S Global
Security.  In connection with such
transfer, the Owner hereby certifies that such transfer is being effected in
accordance with Rule 904 under the Securities Act and with all applicable
securities laws of the states of the United States and other jurisdictions.  Accordingly, the Owner hereby further
certifies as follows:

 

1.  the Owner is not a distributor of the
Specified Securities, an Affiliate of the Company or any such distributor or a
person acting on behalf of any of the foregoing;

 

2.  the offer of the Specified Securities was not
made to a person in the United States;

 

3.  either:

 

(a)  at the time the buy order
was originated, the Transferee was outside the United States or the Owner and
any person acting on its behalf reasonably believed that the Transferee was
outside the United States; or

 

(b)  the transaction is being
executed in, on or through the facilities of the Eurobond market, as regulated
by the Association of International Bond Dealers, or another designated
offshore securities market and neither the Owner nor any person acting on its
behalf knows that the transactions have been prearranged with a buyer in the
United States;

 

4.  no directed selling efforts have been made in
the United States by or on behalf of the Owner or any Affiliate thereof;

 

5.  if the Owner is a dealer in securities or has
received a selling concession, fee or other remuneration in respect of the
Specified Securities, and the transfer is to occur during the Restricted
Period, then the requirements of Rule 904(c)(1) have been satisfied;

 

6.  the transaction is not part of a plan or
scheme to evade the registration requirements of the Securities Act; and

 

7.  upon completion of the transaction, the
beneficial interest being transferred will be held through an Agent Member
acting for and on behalf of Euroclear or Clearstream.

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company and the Initial Purchasers under the Purchase
Agreement.

 

C-1-2

 

	
  Dated:

  
	
   

  
	
   

  	
   

  
	
   

  	
  (Print the name of the Undersigned, as such
  term is

  
	
   

  	
  defined in the second paragraph of this
  certificate.)

  
	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  (If the Undersigned is a corporation,
  partnership or

  
	
   

  	
  fiduciary, the title of the person signing
  on behalf of

  
	
   

  	
  the Undersigned must be stated.)

  

 

 

C-1-3

 

EXHIBIT C-2

 

FORM OF
TRANSFER CERTIFICATE

RESTRICTED GLOBAL SECURITY TO UNRESTRICTED

GLOBAL SECURITY

 

(Transfers
Pursuant to Sections 2.16(a)(iii) and 2.16(b)(ii) of the Indenture)

 

Wells Fargo Bank, National Association

Sixth Street and Marquette Avenue

MAC N9303-120

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services

 

Citibank, N.A.

5 Carmelite Street

London EC4Y 0PA

Attention: Bond Agency

 

Huntsman International LLC

500 Huntsman Way

Salt Lake City, Utah 84108

Attention:  Secretary

 

Re:                               Huntsman
International LLC 73/8% Dollar-Denominated Senior

Subordinated Notes due 2015 [71/2% Euro-Denominated
Senior

Subordinated Notes due 2015] (the “Securities”)

 

Reference is
hereby made to the Indenture, dated as of December 17, 2004 between the
Company, the Guarantors named therein and Wells Fargo Bank, National
Association, as trustee, (the “Indenture”). 
Terms used but not defined herein and defined in Regulation S under the
U.S. Securities Act of 1933 (the “Securities Act”) or in the Indenture shall
have the meanings given to them in Regulation S or the Indenture, as the case
may be.

 

This
certificate relates to [U.S.$][EU]          
principal amount of Securities, which are evidenced by the following
certificate(s) (the “Specified Securities”):

 

[CUSIP][CINS][ISIN]
No(s).  

 

CERTIFICATE
No(s).  

 

The person in
whose name this certificate is executed below (the “Undersigned”) hereby
certifies that either (i) it is the sole beneficial owner of the Specified
Securities or (ii) it is acting on behalf of all the beneficial owners of the
Specified Securities and is duly authorized by them to do so.  Such beneficial owner or owners are referred
to herein

 

C-2-1

 

collectively
as the “Owner”.  If the Specified
Securities are represented by a Global Security, they are held through the
appropriate Depositary or an Agent Member in the name of the Undersigned, as or
on behalf of the Owner.

 

The Owner has
requested that the Specified Securities be transferred to a person (the “Transferee”)
who will take delivery in the form of an interest in the Unrestricted Global
Security.  In connection with such
transfer, the Owner hereby certifies that such transfer is being effected in
accordance with Rule 904 or Rule 144 under the Securities Act and with all
applicable securities laws of the states of the United States and other
jurisdictions.  Accordingly, the Owner
hereby further certifies as follows:

 

(1)                                  Rule
904 Transfers.  If the transfer is being
effected in accordance with Rule 904:

 

(A)                              the
Owner is not a distributor of the Specified Securities, an Affiliate of the
Company or any such distributor or a person acting on behalf of any of the
foregoing;

 

(B)                                the
offer of the Specified Securities was not made to a person in the United
States;

 

(C)                                either:

 

(i)                                     at
the time the buy order was originated, the Transferee was outside the United
States or the Owner and any person acting on its behalf reasonably believed
that the Transferee was outside the United States; or

 

(ii)                                  the
transaction is being executed in, on or through the facilities of the Eurobond
market, as regulated by the Association of International Bond Dealers, or
another designated offshore securities market and neither the Owner nor any
person acting on its behalf knows that the transactions has been prearranged
with a buyer in the United States;

 

(D)                               no
directed selling efforts have been made in the United States by or on behalf of
the Owner or any Affiliate thereof;

 

(E)                                 if
the Owner is a dealer in securities or has received a selling concession, fee
or other remuneration in respect of the Specified Securities, and the transfer
is to occur during the Restricted Period, then the requirements of Rule
904(c)(1) have been satisfied; and

 

(F)                                 the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act.

 

(2)                                  Rule
144 Transfers.  If the transfer is being
effected pursuant to Rule 144:

 

C-2-2

 

(A)                              the
transfer is occurring after [date one year after the latest date of issuance of
any of the Specified Securities] and is being effected in accordance with the
applicable amount, manner of sale and notice requirements of Rule 144; or

 

(B)                                the
transfer is occurring after [date two years after the latest date of issuance
of any of the Specified Securities] and the Owner is not, and during the
preceding three months has not been, an Affiliate of the Company.

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company and the Initial Purchasers under the Purchase
Agreement.

 

	
  Dated:

  
	
   

  
	
   

  	
   

  
	
   

  	
  (Print the name of the Undersigned, as such
  term is

  
	
   

  	
  defined in the second paragraph of this
  certificate.)

  
	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

(If the
Undersigned is a corporation, partnership or fiduciary, the title of the person
signing on behalf of the Undersigned must be stated.)

 

C-2-3

 

EXHIBIT C-3

 

FORM OF
TRANSFER CERTIFICATE —

REGULATION S GLOBAL SECURITY TO

RESTRICTED GLOBAL SECURITY

 

(Transfers to
QIBs Pursuant to Sections 2.16(a)(iv) of the Indenture)

 

Wells Fargo Bank, National Association

Sixth Street and Marquette Avenue

MAC N9303-120

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services

 

Citibank, N.A.

5 Carmelite Street

London EC4Y 0PA

Attention: Bond Agency

 

Huntsman International LLC

500 Huntsman Way

Salt Lake City, Utah 84108

Attention:  Secretary

 

Re:                               Huntsman
International LLC 73/8% Dollar-Denominated Senior

Subordinated Notes due 2015 [71/2% Euro-Denominated
Senior

Subordinated Notes due 2015 ] (the “Securities”)

 

Reference is
hereby made to the Indenture, dated as of December 17, 2004 between the
Company, the Guarantors named therein and Wells Fargo Bank, National
Association, as trustee, (the “Indenture”). 
Terms used but not defined herein and defined in Regulation S under the
U.S. Securities Act of 1933 (the “Securities Act”) or in the Indenture shall
have the meanings given to them in Regulation S or the Indenture, as the case
may be.

 

This
certificate relates to U.S.$           
principal amount of Securities, which are evidenced by the following certificate(s)
(the “Specified Securities”):

 

[CUSIP][CINS][ISIN]
No(s). 

 

CERTIFICATE
No(s).  

 

The person in
whose name this certificate is executed below (the “Undersigned”) hereby
certifies that either (i) it is the sole beneficial owner of the Specified Securities
or (ii) it is acting on behalf of all the beneficial owners of the Specified
Securities and is duly authorized by them to do so.  Such beneficial owner or owners are referred
to herein

 

C-3-1

 

collectively
as the “Owner”.  If the Specified
Securities are represented by a Global Security, they are held through the
appropriate Depositary or an Agent Member in the name of the Undersigned, as or
on behalf of the Owner.

 

The Owner has
requested that the Specified Securities be transferred to a person (the “Transferee”)
who will take delivery in the form of an interest in the Restricted Global
Security.  In connection with such
transfer, the Owner hereby certifies that such transfer is being effected in accordance
with Rule 144A under the Securities Act and with all applicable securities laws
of the states of the United States and other jurisdictions.  Accordingly, the Owner hereby further
certifies as follows:

 

(1)                                  the
Specified Securities are being transferred to a person that the Owner and any
person acting on its behalf reasonably believe is a “qualified institutional
buyer” within the meaning of Rule 144A, acquiring for its own account or for
the account of a qualified institutional buyer; and

 

(2)                                  the
Owner and any person acting on its behalf have taken reasonable steps to ensure
that the Transferee is aware that the Owner may be relying on Rule 144A in
connection with the transfer.

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Company and the Initial Purchasers under the Purchase
Agreement.

 

	
  Dated:

  
	
   

  
	
   

  	
   

  
	
   

  	
  (Print the name of the Undersigned, as such
  term is

  
	
   

  	
  defined in the second paragraph of this
  certificate.)

  
	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

(If the Undersigned
is a corporation, partnership or fiduciary, the title of the person signing on
behalf of the Undersigned must be stated.)

 

C-3-2

 

EXHIBIT D

 

FORM OF
CERTIFICATE TO BE

DELIVERED IN CONNECTION WITH

TRANSFERS TO INSTITUTIONAL ACCREDITED INVESTORS

 

(Transfers
Pursuant to Section 2.17(a) of the Indenture)

 

Wells Fargo Bank, National Association

Sixth Street and Marquette Avenue

MAC N9303-120

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services

 

Citibank, N.A.

5 Carmelite Street

London EC4Y 0PA

Attention: Bond Agency

 

Huntsman International LLC

500 Huntsman Way

Salt Lake City, Utah 84108

Attention:  Secretary

 

Re:                               Huntsman
International LLC 73/8% Dollar-Denominated Senior

Subordinated Notes due 2015 [71/2% Euro-Denominated
Senior

Subordinated Notes due 2015] (the “Securities”)

 

Ladies and
Gentlemen:

 

Reference is
hereby made to the Indenture, dated as of December 17, 2004 between the
Company and Wells Fargo Bank, National Association, as trustee (the “Indenture”).  Terms used but not defined herein have the
meanings given to them in the Indenture.

 

This
certificate relates to [U.S. $] [EU]        
principal amount of Securities, which are evidenced by the following
certificate(s):

 

1.  We understand that the Securities have not
been registered under the Securities Act of 1933, as amended (the “Securities
Act”), and may not be sold except as permitted in the following sentence.  We understand and agree, on our own behalf
and on behalf of any accounts for which we are acting as hereinafter stated,
(x) that such Securities are being offered only in a transaction not involving
any public offering within two years after the date of the original issuance of
the Securities or if within three months after we cease to be an affiliate
(within the meaning of Rule 144 under the Securities Act) of the Company, such
Securities may be resold, pledged or transferred only (i) to

 

D-1

 

the Company, (ii) so long as the Securities are eligible for resale
pursuant to Rule 144A under the Securities Act (“Rule 144A”), to a person whom
we reasonably believe is a “qualified institution buyer” (as defined in Rule
144A) (“QIB”) that purchases for its own account or for the account of a QIB to
whom notice is given that the resale, pledge or transfer is being made in
reliance on Rule 144A (as indicated by the box checked by the transferor on the
Certificate of Transfer on the reverse of the certificate for the Securities),
(iii) in an offshore transaction in accordance with Regulation S under the
Securities Act (as indicated by the box checked by the transferor on the
Certificate of Transfer on the reverse of the Note if the Note is not in
book-entry form), and, if such transfer is being effected by certain
transferors prior to the expiration of the “40-day distribution compliance
period” (within the meaning of Rule 903(b)(2) of Regulation S under the
Securities Act), a certificate that may be obtained from the Trustee is
delivered by the transferee, (iv) to an institution that is an “accredited
investor” as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act (as indicated by the box checked by the transferor on the Certificate of
Transfer on the reverse of the certificate for the Securities) which has
certified to the Company and the Trustee for the Securities that it is such an
accredited investor and is acquiring the Securities for investment purposes and
not for distribution (provided that no Securities purchased from a
foreign purchaser or from any person other than a QIB or an institutional
accredited investor pursuant to this clause (iii) shall be permitted to
transfer any Securities so purchased to an institutional accredited investor
pursuant to this clause (iv) prior to the expiration of the “applicable
restricted period” (within the meaning of Regulation S under the Securities
Act), (v) pursuant to an exemption from registration under the Securities Act
provided by Rule 144 (if applicable) under the Securities Act, or (vi) pursuant
to an effective registration statement under the Securities Act, in each case
in accordance with any applicable securities laws of any state of the United
States, and we will notify any purchaser of the Securities from us of the above
resale restriction, if then applicable. 
We further understand that in connection with any transfer of the
Securities by us that the Company and the Trustee for the Securities may
request, and if so requested we will furnish, such certificates, legal opinions
and other information as they may reasonably require to confirm that any such
transfer complies with the foregoing restrictions.

 

2.  We are able to fend for ourselves in the
transactions contemplated by this Offering Circular, we have such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of our investment in the Securities, and we and any accounts
for which we are acting are each able to bear the economic risk of our or its
investment and can afford the complete loss of such investment.

 

3.  We understand that the Company and others
will rely upon the truth and accuracy of the foregoing acknowledgments,
representations and agreements and we agree that if any of the acknowledgments,
representations and warranties deemed to have been made by us by our purchase
of Securities, for our own account or of one or more accounts as to each of
which we exercise sole investment discretion, are no longer accurate, we shall
promptly notify the Company.

 

D-2

 

4.  We are acquiring the Securities purchased by
us for investment purposes and not for distribution of our own account or for
one or more accounts as to each of which we exercise sole investment discretion
and we are or such account is an institutional “accredited investor” (as
defined in rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities
Act).

 

5.  You are entitled to rely upon this letter and
you are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Name of Purchaser)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  

 

 

D-3

 

EXHIBIT E

 

GUARANTEE

 

For value
received, the undersigned hereby unconditionally guarantees, as principal
obligor and not only as a surety, to the Holder of this Note the payments of
principal of, premium, if any, and interest on this Note in the amounts and at
the times when due and interest on the overdue principal, premium, if any, and
interest, if any, of this Note, if lawful, and the payment or performance of
all other obligations of the Company under the Indenture (as defined below) or
the Notes, to the Holder of this Note and the Trustee, all in accordance with
and subject to the terms and limitations of this Note, Article Eleven of
the Indenture and this Guarantee.  This
Guarantee will become effective in accordance with Article Eleven of the
Indenture and its terms shall be evidenced therein.  The validity and enforceability of any
Guarantee shall not be affected by the fact that it is not affixed to any
particular Note.

 

Capitalized
terms used but not defined herein shall have the meanings ascribed to them in
the Indenture dated as of December 17, 2004, among HUNTSMAN INTERNATIONAL
LLC as issuer (the “Company”), each of the Guarantors named therein and Wells
Fargo Bank, National Association, as trustee (the “Trustee”), as amended or
supplemented (the “Indenture”).

 

The
obligations of the undersigned to the Holders of Notes and to the Trustee
pursuant to this Guarantee and the Indenture are expressly set forth in Article Eleven
of the Indenture (including, without limitation, the applicable limitations on
this Guarantee as set forth in Section 11.02 of the Indenture and the
provisions relating to the release of this Guarantee as set forth in Section 11.04
of the Indenture) and reference is hereby made to the Indenture for the precise
terms of the Guarantee and all of the other provisions of the Indenture to
which this Guarantee relates.

 

THIS GUARANTEE
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK.  The undersigned Guarantor
hereby agrees to submit to the jurisdiction of the courts of the State of New
York in any action or proceeding arising out of or relating to this Guarantee.

 

This Guarantee
is subject to release upon the terms set forth in the Indenture.

 

E-1

 

IN WITNESS
WHEREOF, each Guarantor has caused its Guarantee to be duly executed.

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
   

  	
                                     ,

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

 

E-2

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