Document:

REGISTRATION RIGHTS AGREEMENT
       

       
            THIS REGISTRATION RIGHTS AGREEMENT dated as of June 22, 2003 (together
            with all schedules hereto, and as each may be amended, supplemented or
            otherwise modified from time to time, the "Agreement") is between ACETEX
            CORPORATION, a Canadian corporation (the "Company"), PERRY PARTNERS L.P., a
            limited partnership organized under the laws of New York, and PERRY PARTNERS
            INTERNATIONAL, INC., a corporation organized in the Cayman Islands, hereinafter
            collectively referred to as the "Shareholders."
       

       
            WHEREAS, the Company and AT Plastics Inc. ("AT Plastics") are entering
            into a Combination Agreement as of the date hereof (the "Combination
            Agreement") pursuant to which the Company will establish a wholly-owned
            subsidiary that will amalgamate with AT Plastics (the "Amalgamation") on and
            subject to the terms and conditions set out in the Combination Agreement;
       

       
            WHEREAS, the shares of common stock of AT Plastics held by the
            Shareholders have not been registered under the Securities Act (as hereinafter
            defined) or any state securities laws; and the certificates representing such
            shares of common stock bear a legend restricting their transfer;
       

       
            WHEREAS, the shares of common stock of AT Plastics held by the
            Shareholders will be exchanged for shares of common stock of the Company
            pursuant to the Amalgamation;
       

       
            WHEREAS, in connection with the foregoing, the Company has agreed,
            subject to the terms, conditions and limitations set forth in this Agreement,
            to provide the Shareholders and their respective successors, assigns and
            transferees as permitted herein with certain registration rights in respect of
            shares of Common Stock.
       

       
            NOW, THEREFORE, in consideration of the mutual covenants and promises
            contained herein, the parties hereto agree as follows:
       

       
            
ARTICLE I
DEFINITIONS
       

       
            1.1. Definitions.   Capitalized words and phrases used and
            not otherwise defined in this Agreement shall have the following meanings:
       

       
            Commission:   means the Securities and Exchange
            Commission or any other federal agency at the time administering the Securities
            Act.
       

       
            Common Stock:   means the common shares of the
            Company and any shares hereafter authorized of any class of the Company, and,
            in the case of a reclassification, recapitalization or other similar change in
            such Common Stock or in the case of a consolidation or merger of the Company
            with or into another Person, such consideration to which a holder of a share of
            Common Stock would have been entitled upon the occurrence of such event.
       

       
            Company:   includes, in addition to the Company,
            any successor or assignee corporation or corporations into which or with which
            the Company may be merged or consolidated; any corporation for whose shares the
            Common Stock may be exchanged; and any assignee of or successor to all or
            substantially all of the assets of the Company.
       

       
            Exchange Act:   means the Securities Exchange Act
            of 1934, as amended.
       

       
            Holder:   means each Shareholder, and each Person
            who is a Permitted Transferee of any Shareholder.
       

       
            register, registered, and
            registration:   when used with respect to the capital
            stock of the Company, mean a registration effected by preparing and filing with
            the Commission a registration statement or similar document in compliance with
            the Securities Act which has been declared or ordered effective in accordance
            with the Securities Act.
       

       
            Permitted Transferee:   means any corporation,
            partnership, limited liability company or other entity controlled by,
            controlling or under common control with any Shareholder (collectively, the
            "Shareholder Associates") to whom any Shareholder or any Shareholder
            Associate has Transferred
       

       
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            shares of Common Stock; Notwithstanding any Person's status as a
            Permitted Transferee, any Transfer of Registrable Securities shall be subject
            to the provisions of Section 9.1.
       

       
            Person:   means any individual, corporation,
            partnership, trust or other entity of any nature whatsoever.
       

       
            Registrable Securities:   means the Common Stock
            held by a Holder. Shares of Common Stock shall cease to be Registrable
            Securities when (i) a registration statement with respect to the sale of such
            shares of Common Stock shall have become effective under the Securities Act
            pursuant to Section 2.1 or Section 3.1 of this Agreement and such shares of
            Common Stock shall have been disposed of pursuant to such registration
            statement, (ii) such shares of Common Stock shall have been sold or otherwise
            distributed pursuant to Rule 144 (or any successor provision) and Rule 145 (or
            any successor provision) under the Securities Act, (iii) with respect to Common
            Stock held by any Holder, registration under the Securities Act or any
            applicable state law is not required to permit the distribution of all of such
            securities to the public or an exemption from registration is available
            therefor, including, without limitation, at such time as such securities are
            eligible for sale or other distribution under Rule 144 (or any successor
            provision) and Rule 145 (or any successor provision) in accordance with the
            volume and other limitations thereof, and (iv) such shares of Common Stock
            shall have ceased to be outstanding.
       

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

       
            Transfer:   means any transfer, sale, gift,
            assignment, distribution, conveyance, pledge, hypothecation, encumbrance or
            other voluntary or involuntary transfer of title or beneficial interest,
            whether or not for value, including, without limitation, any disposition by
            operation of law or any grant of a derivative or economic interest therein.
       

       
            
ARTICLE II
DEMAND REGISTRATION
       

       
            2.1 Registration.    (a) The Company shall
            prepare and file with the Commission no later than July 20, 2003 a registration
            statement on Form with respect to the Shareholders' Registrable Securities and
            use its best efforts to cause such registration statement to become effective
            as soon as practicable but no later than 90 days following said filing and keep
            such registration statement effective for a period ending no earlier than 366
            days from the date the Amalgamation is effected or until the distribution
            described in the registration statement relating thereto has been completed,
            whichever shall first occur.
       

       
            (b) The Shareholders and each Holder or any number of Holders of
            Registrable Securities may at any time when the registration statement referred
            to in (a) above is not effective (including at any time following the
            365th day that the Amalgamation is effective) make a written request
            to the Company that the Company file a registration statement or similar
            document under the Securities Act with respect to all or any part of such
            Holder's or Holders' Registrable Securities (a "Demand Registration").
            Subject to the provisions of Section 2.1 (c) and Section 4.1, the Company shall
            cause such registration statement or similar document to be filed with the
            Commission and shall use its best efforts to include in such registration
            statement the Registrable Securities which the Company has been requested to
            register by the requesting Holders and to cause all such Registrable Securities
            to be registered under the Securities Act within 90 days of receipt of the
            requesting Holders' request. Collectively, the Holders shall be entitled to
            request one (1) Demand Registration.
       

       
            (c) The Company agrees not to issue any Common Stock or any securities
            convertible into or exchangeable or exercisable for Common Stock (other than
            securities issued pursuant to the Company's option or other benefit plans,
            pursuant to a registration identified in clauses (i)-(iii) of Section 3.1(a),
            or securities issued by the Company included in any Demand Registration or
            securities issued upon conversion of outstanding warrants or common stock
            issued in connection with the refinancing of debt issued in connection with the
            Amalgamation), for the period commencing 30 days prior to the closing of the
            offering of securities included in any Demand Registration and ending on the
            30th day following such closing. The Holders shall give the Company notice of
            the anticipated closing date of such offering.
       

       
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            2.2 Expenses.    With respect to the
            registration contemplated by Section 2.1 (a) and any Demand Registration, the
            Company shall pay, and shall reimburse each Holder for paying, any expenses
            incurred in connection with such registrations, including, without limitation,
            all registration, qualification, printing and accounting fees and all fees and
            disbursements of counsel for the Company and the reasonable fees and
            disbursements of not more than one counsel for all participating Holders, but
            not any underwriting or brokerage fees or commissions nor any expenses of
            underwriters or brokers.
       

       
            ARTICLE III
PIGGYBACK REGISTRATION
       

       
            3.1    Notice of Registration. (a) In the
            event that the Company proposes to register any of its Common Stock, either for
            its own account or for the account of any Person other than the Holders, but
            not including a registration (i) relating to employee stock option or purchase
            plans, (ii) relating to a transaction pursuant to Rule 145 under the Securities
            Act, or (iii) pursuant to a registration form which does not include
            substantially the same information as would be required to be included in a
            registration statement covering the sale of Registrable Securities (a
            "Piggyback Registration"), the Company will:
       

       
            (X)    promptly give written notice thereof to the
            Holders; and
       

       
            (Y)    use its best efforts to include in such
            Piggyback Registration and in any underwriting involved therein up to all of
            the Registrable Securities which the Holders request in writing to be so
            included within 15 days after receipt of such written notice from the Company.
       

       
            (b)    Notwithstanding the provisions of Section
            3.1(a), the Company shall not be required to include any Registrable Securities
            in any Piggyback Registration during any period in which a shelf registration
            statement shall have become and be maintained effective;
            provided that such shelf
            registration statement shall register under the Securities Act all Registrable
            Securities and shall not be subject to (x) any stop order suspending its
            effectiveness or (y) any order suspending or preventing the use of any related
            prospectus or suspending the qualification of any Registrable Securities
            included in such shelf registration statement.
       

       
            3.2    Expenses.   The Company
            shall pay, and shall reimburse each Holder for paying, any expenses incurred in
            connection with a Piggyback Registration requested pursuant to Section 3.1,
            including, without limitation, all registration, qualification, printing and
            accounting fees and all fees and disbursements of counsel for the Company and
            the reasonable fees and disbursements of not more than one counsel for all
            participating Holders, but not any underwriting or brokerage fees or
            commissions nor any expenses of underwriters or brokers.
       

       
            3.3    Underwriting.   If the
            registration of which the Company gives notice is for a registered public
            offering involving an underwriting, the Company shall so advise the Holders as
            a part of the written notice given pursuant to Section 3.1, and the right of
            the Holders to include Registrable Securities in such registration shall be
            conditioned upon the Holders' participation in such underwriting and the entry
            of the participating Holders (together with the Company and other holders
            distributing their securities through such underwriting) into an underwriting
            agreement in customary form with the underwriter or underwriters selected for
            such underwriting by the Company.
       

       
            3.4    Priority.   If the
            underwriter of the registered public offering referred to in Section 3.3 shall
            advise the Company in writing that marketing factors require a limitation of
            the amount of securities to be underwritten, securities shall be included in
            such offering in the following priority: first, the Common Stock proposed to
            be registered by the Company; second,
            Registrable Securities requested to be included in such registration
            by requesting Holders pursuant to Section 3.1; and
            third, other securities for
            the account of Persons other than Holders, allocated among such Persons in
            accordance with the priorities then existing among the Company and such
            Persons. Any securities excluded pursuant to the provisions of this Section 4.4
            shall be withdrawn from and shall not be included in such Piggyback
            Registration.
       

       
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            ARTICLE IV
PERMITTED DELAYS IN REGISTRATION; HOLDBACK AGREEMENTS
       

       
            4.1    Suspension of Company
            Obligations.   Notwithstanding anything to the contrary set
            forth in this Agreement, the Company's obligation under Article II of this
            Agreement to file any registration statement and to use its best efforts to
            cause Registrable Securities to be registered as provided therein shall be
            suspended in the event either (i) the Company is engaged in an underwritten
            primary offering and the Company is advised in writing by the underwriters that
            the sale of Registrable Securities would have a material adverse effect on such
            primary offering or (ii) in the good faith opinion of counsel to the Company,
            effecting the filing of a Registration Statement pursuant to 2.1(b) hereof
            would adversely affect a material financing, acquisition, disposition of assets
            or stock, merger or other comparable transaction or would require the Company
            to make public disclosure of information the public disclosure of which would
            have a material adverse effect upon the Company (any of the events set forth in
            clauses (i) and (ii) being hereinafter referred to as a "Suspension Event"),
            but such suspension shall occur on not more than one occasion in a 365 day
            period and shall continue only for so long as such event or its effect is
            continuing, but in no event will any such suspension exceed 180 days. The
            Company shall promptly notify the Holders in writing of the existence of any
            Suspension Event, and with such notice shall provide the Holders with a copy of
            such underwriters' determination (in the case of clause (i) above), or such
            opinion of counsel the Board of Directors (in the case of clause (ii) above).
       

       
            4.2    No Participation in Other Securities
            Offerings.   The rights granted by the Company hereunder
            shall be the exclusive rights granted to Holders with respect to Registrable
            Securities. Except as otherwise provided herein, Holders shall have no rights
            to participate in any offering of securities by the Company to third parties,
            including without limitation, any offering of Common Stock, whether such
            offering is effected pursuant to registration under the Securities Act or
            pursuant to an exemption from registration thereunder. The Company may, in its
            sole and absolute discretion, elect to waive the applicability in any
            particular instance of the provisions of this Section 4.2.
       

       
            ARTICLE V
       

       
            REGISTRATION PROCEDURES
       

       
            5.1    Registration
            Procedures.   In the case of each registration to be
            effected by the Company pursuant to this Agreement in which any Holder is
            participating, the Company will keep the Holder advised in writing as to the
            initiation of each registration and as to the completion thereof. In connection
            with each such offering, the Company shall as expeditiously as possible, at its
            sole expense:
       

       
            (a)    prepare and file with the Commission a
            registration statement with respect to such Holder's Registrable Securities and
            use its best efforts to cause such registration statement to become effective
            and to remain effective for a period of at least 180 days (except with respect
            to the registration statement contemplated by 2.1(a) hereof which shall remain
            effective at least until 366 days from the date the Amalgamation is effected)
            or until the distribution described in the registration statement relating
            thereto has been completed, whichever shall first occur;
       

       
            (b)    in connection with the preparation and filing
            of a registration statement, give the Holder, its underwriters, if any, and
            their respective counsel, the opportunity to participate in the preparation of
            such registration statement, each prospectus included therein or filed with the
            Commission, and each amendment thereof or supplement thereto, and give each of
            them such access to its books and records and such opportunities to discuss the
            business of the Company with its officers, its counsel and the independent
            public accountants who have certified its financial statements as shall be
            necessary, in the opinion of the Holder's and such underwriters' respective
            counsel, to conduct a reasonable due diligence investigation within the meaning
            of the Securities Act;
       

       
            (c)    furnish to the Holder and to the underwriters
            of the securities being registered such number of copies of the registration
            statement, preliminary prospectus, final prospectus and other documents
            incident thereto as such underwriters and the Holder from time to time may
            reasonably request;
       

       
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            (d)    prepare and file with the Commission such
            amendments and supplements to such registration statement and the prospectus
            used in connection with such registration statement as may be necessary to
            comply with the provisions of the Securities Act with respect to the
            disposition of all securities covered by such registration statement;
       

       
            (e)    register or qualify the Registrable Securities
            covered by such registration statement under such other securities or Blue Sky
            laws of such jurisdictions as shall be requested by the Holder for the
            distribution of the Registrable Securities covered by the registration
            statement to be sold by the Holder; provided that the Company shall not
            be required in connection therewith or as a condition thereto to qualify to do
            business or to file a general consent to service of process in any such states
            or jurisdictions;
       

       
            (f)    enter into an underwriting agreement in
            customary form and substance reasonably satisfactory to the Company, the Holder
            and the managing underwriter or underwriters of the public offering of such
            securities, if the offering is to be underwritten, in whole or in part;
            provided that the Holder shall
            be a party to such underwriting agreement and may, at its option, require that
            any or all of the conditions precedent to the obligations of such underwriters
            under such underwriting agreement be conditions precedent to the obligations of
            the Holder. The Holder shall not be required to make any representations or
            warranties to or agreement with the Company or the underwriters other than
            representations, warranties or agreements regarding the Holder and the Holder's
            intended method of distribution and any other representation or warranty
            required by law;
       

       
            (g)    notify the Holder at any time when a
            prospectus relating thereto covered by such registration statement is required
            to be delivered under the Securities Act, of the happening of any event as a
            result of which the prospectus included in such registration statement, as then
            in effect, includes an untrue statement of a material fact or omits to state a
            material fact required to be stated therein or necessary to make the statements
            therein not misleading in the light of the circumstances then existing;
       

       
            (h)    furnish, at the request of the Holder on the
            date that any Registrable Securities are to be delivered to the underwriters
            for sale in connection with a registration pursuant to this Agreement, if such
            securities are being sold through underwriters, on the date that the
            registration statement with respect to such securities becomes effective, (i)
            an opinion, dated such date, of the counsel representing the Company for the
            purposes of such registration, in form and substance as is customarily given to
            underwriters in an underwritten public offering, addressed to the underwriters,
            if any, and to the Holder and (ii) a letter dated such date, from the
            independent certified public accountants of the Company, in form and substance
            as is customarily given by independent certified public accountants to
            underwriters in an underwritten public offering, addressed to the underwriters,
            if any, and to the Holder; and
       

       
            (i)    list all Registrable Securities covered by
            such registration statement on such securities exchange as may be mutually
            agreed upon by the parties.
       

       
            ARTICLE VI
       

       
            INDEMNIFICATION
       

       
            6.1    Indemnification by the
            Company.   In the event of any registration of any
            Registrable Securities pursuant to this Agreement under the Securities Act, the
            Company will, and hereby does, indemnify and hold harmless each participating
            Holder, each of its directors, officers and controlling persons, if any, within
            the meaning of the Securities Act, against any losses, claims, damages or
            liabilities, to which such participating Holder or controlling person may
            become subject under the Securities Act or otherwise, insofar as such losses,
            claims, damages or liabilities (or actions or proceedings, whether commenced or
            threatened, in respect thereof) arise out of or are based upon any untrue
            statement or alleged untrue statement of any material fact contained in the
            registration statement under which such Registrable Securities were registered
            under the Securities Act, any preliminary prospectus, final prospectus or
            summary prospectus contained therein, or any amendment
       

       
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            or supplement thereto, or any omission or alleged omission to state
            therein a material fact required to be stated therein or necessary to make the
            statements therein, in light of the circumstances under which they were made,
            not misleading, and the Company will reimburse each participating Holder and
            controlling person for any reasonable legal or any other expenses reasonably
            incurred by them in connection with investigating or defending any such loss,
            claim, liability, action or proceeding; provided, however, that the Company
            shall not be liable in any such case to the extent that any such loss, claim,
            damage, liability (or action or proceeding in respect thereof) or expense
            arises out of or is based upon an untrue statement or alleged untrue statement
            or omission or alleged omission made in such registration statement, any such
            preliminary prospectus, final prospectus, summary prospectus, amendment or
            supplement in reliance upon and in conformity with written information
            furnished to the Company by any participating Holder, specifically stating that
            it is for use in the preparation thereof. Such indemnity shall remain in full
            force and effect regardless of any investigation made by or on behalf of any
            participating Holder or any such underwriter or controlling person and shall
            survive the transfer of such securities by the Holder.
       

       
            6.2    Indemnification by Participating
            Holders.   Each of the participating Holders whose
            Registrable Securities are included or to be included in any registration
            statement, as a condition to including Registrable Securities in such
            registration statement, agrees to indemnify and hold harmless (in the same
            manner and to the same extent as set forth in Section 6.1) the Company, each
            director of the Company, each officer of the Company and each other Person, if
            any, who controls the Company within the meaning of the Securities Act, with
            respect to any untrue statement or alleged untrue statement of a material fact
            in or omission or alleged omission to state a material fact from such
            registration statement, any preliminary prospectus, final prospectus or summary
            prospectus contained therein, or any amendment or supplement thereto, if such
            untrue statement or alleged untrue statement or omission or alleged omission
            was made in reliance upon and in conformity with written information furnished
            to the Company by any participating Holder specifically stating that it is for
            use in the preparation of such registration statement, preliminary prospectus,
            final prospectus, summary prospectus, amendment or supplement. The obligation
            to provide indemnification pursuant to this Section 6.2 shall be several, and
            not joint and several, among such participating Holders. Such indemnity shall
            remain in full force and effect regardless of any investigation made by or on
            behalf of the Company or any such director, officer, or any such underwriter or
            controlling person and shall survive the transfer of such securities by any
            participating Holder.
       

       
            6.3    Notices of
            Claims.   Promptly after receipt by an indemnified party of
            notice of the commencement of any action or proceeding involving a claim
            referred to in Section 6.1 or 6.2, such indemnified party will, if a claim in
            respect thereof is to be made against an indemnifying party, give written
            notice to the latter of the commencement of such action;
            provided, however, that the
            failure of any indemnified party to give notice as provided herein shall not
            relieve the indemnifying party of its obligations under Section 6.1 or 6.2,
            except to the extent that the indemnifying party is actually prejudiced by such
            failure to give notice. In case any such action is brought against an
            indemnified party, unless in such indemnified party's reasonable judgment a
            conflict of interest between such indemnified and indemnifying parties may
            exist in respect of such claim, the indemnifying party shall be entitled to
            participate in and to assume the defense thereof, jointly with any other
            indemnifying party similarly notified to the extent that it may wish, with
            counsel reasonably satisfactory to such indemnified party, and after notice
            from the indemnifying party to such indemnified party of its election so to
            assume the defense thereof, the indemnifying party shall not be liable to the
            indemnified party for any legal or other expenses subsequently incurred by the
            latter in connection with the defense thereof other than reasonable costs of
            investigation; provided that
            the indemnified party may participate in such defense at the indemnified
            party's expense and provided, further,
            that all indemnified parties shall have the right to employ one
            counsel to represent them if, in the reasonable judgment of such indemnified
            parties, it is advisable for them to be represented by separate counsel by
            reason of having legal defenses which are different from or in addition to
            those available to the indemnifying party, and in that event the reasonable
            fees and expenses of such one counsel shall be paid by the indemnifying party.
            If the indemnifying party is not entitled to, or elects not to, assume the
            defense of a claim, it will not be obligated to pay the fees and expenses of
            more than one counsel
       

       
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            for the indemnified parties with respect to such claim, unless in the
            reasonable judgment of any indemnified party a conflict of interest may exist
            between such indemnified party and any other indemnified parties with respect
            to such claim, in which event the indemnifying party shall be obligated to pay
            the fees and expenses of such additional counsel for the indemnified parties.
            No indemnifying party shall consent to entry of any judgment or enter into any
            settlement without the consent of the indemnified party which does not include
            as an unconditional term thereof the giving by the claimant or plaintiff to
            such indemnified party of a release from all liability in respect to such claim
            or litigation. No indemnifying party shall be subject to any liability for any
            settlement made without its consent, which consent shall not be unreasonably
            withheld.
       

       
            6.4    Other
            Indemnification.   Indemnification similar to that specified
            in the preceding Sections of this Article VI (with appropriate modifications)
            shall be given by the Company and any participating Holder with respect to any
            required registration or other qualification of securities under any federal or
            state law or regulation of any governmental authority other than the Securities
            Act.
       

       
            6.5    Indemnification
            Payments.   The indemnification required by this Article VI
            shall be made by periodic payments of the amount thereof during the course of
            the investigation or defense, as and when bills are received or expense, loss,
            damage or liability is incurred.
       

       
            6.6    Contribution.   If, for
            any reason, the foregoing indemnity is unavailable, or is insufficient to hold
            harmless an indemnified party, then the indemnifying party shall contribute to
            the amount paid or payable by the indemnified party as a result of the expense,
            loss, damage or liability (a) in such proportion as is appropriate to reflect
            the relative fault of the indemnifying party on the one hand and the
            indemnified party on the other (determined by reference to, among other things,
            whether the untrue or alleged untrue statement of a material fact or omission
            or alleged omission relates to information supplied by the indemnifying party
            or the indemnified party and the parties' relative intent, knowledge, access to
            information and opportunity to correct or prevent such untrue statement or
            omission); or (b) if the allocation provided by clause (a) above is not
            permitted by applicable law or provides a lesser sum to the indemnified party
            than the amount otherwise payable hereunder, in the proportion as is
            appropriate to reflect not only the relative fault of the indemnifying party
            and the indemnified party, but also the relative benefits received by the
            indemnifying party on the one hand and the indemnified party on the other, as
            well as any other relevant equitable considerations. No indemnified party
            guilty of fraudulent misrepresentation (within the meaning of Section 11 (f) of
            the Securities Act) shall be entitled to contribution from any indemnifying
            party who was not guilty of such fraudulent misrepresentation.
       

       
            ARTICLE VII
       

       
            INFORMATION BY PARTICIPATING HOLDERS
       

       
            7.1    Information Regarding Participating
            Holders.   If any Registrable Securities are included in any
            registration, each participating Holder shall furnish to the Company and any
            applicable underwriter such information regarding such Holder and the
            distribution proposed by such Holder as the Company or such underwriter may
            request in writing and as shall be required in connection with any
            registration, qualification or compliance referred to in this Agreement.
       

       
            ARTICLE VIII
       

       
            RULE 144 AND RULE 145 SALES
       

       
            8.1    Reporting.   With a view
            to making available to the Holders the benefits of certain rules and
            regulations of the Commission which may permit the sale of Registrable
            Securities (and shares of Common Stock held by any Holder which are eligible
            for sale or distribution under Rule 144 (or any successor provision) and Rule
            145 (or any successor provision) promulgated under the Securities Act) to the
            public without registration or through short form registration forms the
            Company agrees to:
       

       
            (a) file with the Commission in a timely manner all reports and other
            documents required of the Company under the Securities Act and the Exchange
            Act; and
       

       
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            (b) furnish to each Holder, so long as such Holder owns any Registrable
            Securities (or any shares of Common Stock which are eligible for sale or
            distribution under Rule 144 and Rule 145), forthwith upon request a written
            statement by the Company that it has complied with the reporting requirements
            of Rule 144 and Rule 145, the Securities Act and the Exchange Act, a copy of
            the most recent annual or quarterly report of the Company, and such other
            reports and documents so filed by the Company as such Holder may reasonably
            request in availing itself of any rule or regulation of the Commission
            permitting such Holder to sell any such securities without registration.
       

       
            (c) Rule 144 and Rule 145 Sales. In connection with any sale,
            transfer or other disposition by any Holder of any Registrable Securities (or
            any shares of Common Stock which are eligible for sale or distribution under
            Rule 144 and Rule 145) pursuant to Rule 144 and Rule 145, upon the delivery to
            the Company of an opinion of counsel to the Holder (such counsel to be
            reasonably satisfactory to the Company) to the effect that such securities may
            be sold in a transaction exempt from the registration and prospectus delivery
            requirements of the Securities Act so that all transfer restrictions can be
            removed upon the consummation of such sale, the Company shall provide such
            Holder with certificates representing the Common Stock, free and clear of all
            transfer restrictions and legends. The Company agrees promptly to deliver such
            legend-free certificates to the Holder for such number of shares of Common
            Stock and registered in such names as the Holder may reasonably request.
       

       
            ARTICLE IX
       

       
            TRANSFER OF RIGHTS
       

       
            9.1    Transfer or
            Assignment.   The rights granted hereunder by the Company
            may be assigned or otherwise conveyed to the respective transferees of the
            Shareholders. It shall be a condition to any Transfer that (a) such Transfer is
            effected in accordance with applicable federal and state securities laws, (b)
            such transferee or assignee becomes a party to this Agreement or agrees in
            writing to be subject to the terms hereof to the same extent as if it were the
            Holder hereunder, and (c) the Company is given written notice by the Holder of
            said Transfer, stating the name and address of said transferee and identifying
            the securities with respect to which such registration rights are being
            assigned.
       

       
            ARTICLE X
       

       
            TERMINATION
       

       
            10.1    Termination.   This
            Agreement and the rights provided hereunder shall terminate and be of no
            further force and effect with respect to each Holder on the earlier of the date
            such Holder shall no longer hold any Registrable Securities.
       

       
            ARTICLE XI
       

       
            MISCELLANEOUS
       

       
            11.1    Remedies for
            Breach.   It is expressly understood that the equitable
            remedies of specific performance and injunction shall be available for the
            enforcement of the covenants and agreements herein, and that the availability
            of these equitable remedies shall not be deemed to limit any other right or
            remedy to which any party to this Agreement would otherwise be entitled.
       

       
            11.2    Successors and
            Assigns.   Subject to the provisions of Section 9.1, the
            terms and conditions of this Agreement shall inure to the benefit of and be
            binding upon the respective successors, assigns and transferees of the parties
            If any successor, assignee or transferee of any Holder shall acquire
            Registrable Securities, in any manner, whether by operation of law or
            otherwise, such Registrable Securities shall be held subject to all of the
            terms of this Agreement, and by taking and holding such Registrable Securities
            such Person shall be conclusively deemed to have agreed to be bound by all of
            the terms and provisions hereof.
       

       
            8
       

       
       
            11.3    Notices.   All notices
            and other communications provided for hereunder shall be in writing and sent by
            registered or certified mail, return receipt requested, postage prepaid or
            delivered in person or by courier, telecopier or electronic mail, and shall be
            deemed to have been duly given when received, by the party to whom such notice
            is to be given at its address set forth below, or at such other address for the
            party as shall be specified by notice given pursuant hereto:
       

       
            (a)    if to the Company, to:
       

       		
		Acetex
                   Corporation
750 World Trade Center
999 Canada Place
Vancouver, British
                   Columbia
Canada
Attention: Brooke Wade

       		
		with
                   a copy to:

       		
		Burnet
                   Duckworth & Palmer LLP
350 Seventh Avenue, SW
Calgary, Alberta

                   Canada
Attention: David Ross

       
            (b)    if to a Holder, to:
       

       		
		Perry
                   Capital LLC
599 Lexington Avenue
New York, NY 10022
Attention: Richard
                   C. Perry

       		
		with
                   a copy to:

       		
		Cadwalader,
                   Wickersham & Taft
100 Maiden Lane New York, NY 10038
Attention:
                   Dennis J. Block, Esq.

       
            11.4    Governing Law.   This
            Agreement and any controversy or claim arising out of or relating to this
            Agreement shall be governed by the laws of the State of New York, without
            giving effect to the principles of conflicts of laws.
       

       
            11.5    Entire Agreement; Amendments and
            Waivers.   This Agreement constitutes the entire agreement
            among the parties pertaining to the subject matter hereof and supersedes all
            prior agreements, understandings, negotiations and discussions whether oral or
            written, of the parties. No supplement, modification or waiver of this
            Agreement shall be binding unless executed in writing by all parties. No waiver
            of any of the provisions of this Agreement shall be deemed or shall constitute
            a waiver of any other provision hereof (whether or not similar), nor shall such
            waiver constitute a continuing waiver unless otherwise expressly provided.
       

       
            11.6    Counterparts.   This
            Agreement may be executed in two or more counterparts, each of which shall be
            deemed an original, but all of which together shall constitute one and the same
            instrument. Copies of executed counterparts transmitted by telecopy or other
            electronic transmission service shall be considered original executed
            counterparts for purposes of this Section 11.6.
       

       
            11.7    Severability.   In the
            event that any one or more of the provisions contained in this Agreement shall,
            for any reason, be held to be invalid, illegal or unenforceable in any respect,
            such invalidity, illegality or unenforceability shall not affect any other
            provision of this Agreement.
       

       
            11.8    Headings.   The
            headings of the Articles and Sections herein are inserted for convenience of
            reference only and are not intended to be part of or to affect the meaning or
            interpretation of this Agreement.
       

       
            11.9    Gender and Other
            References.   Unless the context clearly indicates
            otherwise, the use of any gender pronoun in this Agreement shall be deemed to
            include all other genders, and singular references shall include the plural and
            vice versa.
       

       
            9
       

       
       
            11.10    Cooperation in Private
            Resales.   The Company shall reasonably cooperate with any
            Holder who seeks to sell any Registrable Securities in a transaction exempt
            from the requirements of the Securities Act, including any private placement or
            block trade. Such cooperation shall include, without limitation, assisting the
            Holder by providing information regarding the Company and reasonable access to
            Company facilities and personnel to potential buyers of Registrable Securities.
       

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

       		
		ACETEX
                   CORPORATION

       		
		Per:   "Brooke
                   N. Wade"
 Brooke Wade
Title:  Chairman & Chief
                   Executive Officer

       		
		PERRY
                   PARTNERS L.P. BY PERRY CORP., ITS GENERAL PARTNER

       		
		Per:  "Randall
                   Borkenstein"
 Name:  Randall
                   Borkenstein
Title:  Managing Director and Chief Financial
                              Officer

       		
		PERRY
                   PARTNERS INTERNATIONAL, INC. BY PERRY CORP., ITS INVESTMENT
 MANAGER

       		
		Per:  "Randall
                   Borkenstein"
Name:  Randall
                   Borkenstein
Title:  Managing Director and Chief Financial
                               Officer

       
            10EXHIBIT 4.3

                              COMBINATION AGREEMENT

             THIS COMBINATION AGREEMENT is made as of June 20, 2003,

AMONG

          ACETEX CORPORATION, a body corporate existing under the laws of
          Alberta with its head office in the City of Vancouver, in the Province
          of British Columbia (hereinafter called "ACETEX")

AND

          2028569 ONTARIO LIMITED, a body corporate existing under the laws of
          Ontario with its registered office in the City of Toronto, in the
          Province of Ontario (hereinafter called "ACETEX SUB")

AND

         AT PLASTICS INC., a body corporate existing under the laws of the
         Province of Ontario with its head office in the City of Brampton, in
         the Province of Ontario (hereinafter called "AT PLASTICS")

         WHEREAS Acetex and AT Plastics wish to propose a combination of their
businesses;

         AND WHEREAS the parties hereto intend to carry out the transactions
contemplated herein by way of an amalgamation of AT Plastics and Acetex Sub
pursuant to which the shareholders of AT Plastics will dispose of their shares
and receive shares of Acetex.

         AND WHEREAS the parties hereto have entered into this Agreement to
provide for the matters referred to in the foregoing recitals and for other
matters relating to such amalgamation;

         NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the
covenants and agreements herein contained and other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged),
the parties hereto do hereby covenant and agree as follows.

                                    ARTICLE 1
                                 INTERPRETATION

1.1      DEFINITIONS

         In this Agreement, unless the context otherwise requires:

"ACETEX OPTION PLAN" means the Acetex Employee Stock Option Plan, as amended and
restated effective August 17, 2000;

"ACETEX SHARES" means common shares in the capital of Acetex;

"ACETEX SHAREHOLDERS" means the holders of Acetex Shares;

"ACETEX SUB" means 2028569 Ontario Limited;

"ACETEX SUBSTITUTE WARRANTS #1" and "ACETEX SUBSTITUTE WARRANTS #2" means those
warrants to acquire Acetex Shares as set out in Schedule E hereto;

"ACQUISITION PROPOSAL" means any merger, amalgamation, consolidation,
arrangement, business combination, recapitalization, take-over bid, sale of
material assets, material sale of treasury shares or rights or interests therein
or thereto (other than a public offering of treasury shares) or similar
transactions involving Acetex or AT Plastics or any Material Subsidiary of
Acetex or AT Plastics, or a proposal to do so, excluding the Amalgamation;

"AMALGAMATION" means the amalgamation involving AT Plastics and Acetex Sub
pursuant to the provisions of Section 175 of the OBCA, on the terms and
conditions set forth in herein;

"AMALGAMATED CORPORATION" means the corporation continuing on the amalgamation
of Acetex Sub and AT Plastics;

"ARTICLES OF AMALGAMATION" means the articles of amalgamation in form attached
as Schedule A hereto;

"AT PLASTICS AMALGAMATION RESOLUTION" means the special resolution of AT
Plastics Shareholders approving the Amalgamation;

"AT PLASTICS CIRCULAR" means the management information circular to be prepared
and sent to the AT Plastics Shareholders in connection with the AT Plastics
Meeting;

"AT PLASTICS MEETING" means the special meeting of AT Plastics Shareholders to
approve the Amalgamation;

"AT PLASTICS OPTION PLAN" means the AT Plastics Employee Stock Option Plan, as
amended and restated May 1, 2002;

"AT PLASTICS OPTIONHOLDERS" means the holders of AT Plastics Options;

"AT PLASTICS OPTIONS" means AT Plastics Employee Stock Options;

"AT PLASTICS SHAREHOLDERS" means the holders of AT Plastics Shares;

"AT PLASTICS SHARES" means the common shares in the capital of AT Plastics;

"AT PLASTICS SUPPORT OBLIGATIONS" means those obligations described in Schedule
F hereto

"AT PLASTICS WARRANTS" means warrants outstanding pursuant to Warrant
Certificates dated June 2, 2003 entitling Peninsula Funds III, L.P to acquire
4,240,568 AT Plastics Shares at a price of $1.57 per share and Connecticut
General Life Insurance Company; to acquire 843,113 AT Plastics Shares at a price
of $.72 per share;

"AT PLASTICS WARRANTHOLDERS" means Peninsula Fund III, L.P. and Connecticut
General Life Insurance Company;

"BUSINESS DAY" means any day, other than Saturday, Sunday and a statutory
holiday in the Province of Ontario;

"COMPETITION ACT" means the Competition Act, R.S.C. 1985, c. C-34, as amended;

"CONFIDENTIALITY AGREEMENT" means the Confidentiality Agreement dated April 5,
2003 between Acetex and AT Plastics;

"DEPOSITORY" means Computershare Trust Company, or any successor thereto;

"DIRECTOR" means the Director of Corporations appointed pursuant to Section 278
of the OBCA;

"EFFECTIVE DATE" means the date upon which the Amalgamation becomes effective
under the OBCA;

"ENCUMBRANCE" includes, without limitation, any mortgage, pledge, assignment,
charge, lien, security interest, adverse interest in property, other third party
interest or encumbrance of any kind, whether contingent or absolute, and any
agreement, option, right or privilege (whether by law, contract or otherwise)
capable of becoming any of the foregoing;

"ENVIRONMENTAL APPROVALS" means all permits, certificates, licenses,
authorizations, consents, instructions, registrations, directions or approvals
issued or required by Governmental Entities pursuant to Environmental Laws;

"ENVIRONMENTAL LAWS" means all applicable Laws, including applicable common
laws, relating to the protection of the environment and employee and public
health and safety;

"GOVERNANCE ARRANGEMENTS" means the arrangements set forth in Schedule D hereto;

"GOVERNMENTAL ENTITY" means any (a) multi-national, federal, provincial, state,
regional, municipal, local or other government, governmental or public
department, central bank, court, tribunal, arbitral body, commission, board,
bureau or agency, domestic or foreign, (b) subdivision, agent, commission, board
or authority of any of the foregoing or (c) quasi-governmental or private body
exercising any regulatory, expropriation or taxing authority under or for the
account of any of the foregoing;

"HAZARDOUS SUBSTANCE" means any pollutant, contaminant, waste of any nature,
hazardous substance, hazardous material, toxic substance, dangerous substance or
dangerous good as defined, judicially interpreted or identified in any
applicable Environmental Law;

"LAWS" means all laws, by-laws, rules, regulations, orders, ordinances,
protocols, codes, guidelines, policies, notices, directions and judgments or
other requirements of any Governmental Entity;

"LENDER CONSENTS" means the consents of the lenders to AT Plastics to the
Amalgamation;

"LETTER OF TRANSMITTAL" means the letter of transmittal sent by AT Plastics to
the AT Plastics Shareholders concurrently with the sending of the AT Plastics
Circular for the AT Plastics Meeting;

"MATERIAL ADVERSE CHANGE" or "material adverse effect" means, when used in
connection with Acetex or AT Plastics, any change, effect, event, occurrence or
change in a state of facts that is, or would reasonably be expected to be,
material and adverse to the business, operations or financial condition of such
Party and its Subsidiaries, taken as a whole, other than any change, effect,
event, occurrence or change in a state of facts principally caused by a change,
effect, event, occurrence or change in a state of facts in (i) the Canadian or
United States economies or financial, currency exchange, securities or
commodities markets in general, (ii) the trading price of the Acetex Shares or
AT Plastics Shares, respectively, or other securities of Acetex or AT Plastics
immediately following and reasonably attributable to the announcement of this
Agreement and the transactions contemplated hereby, (iii) the chemical
manufacturing industry in general, and (iv) specific matters disclosed in the
disclosure memoranda delivered pursuant to Section 1.10;

"MATERIAL SUBSIDIARY" in respect of a Party means a Subsidiary of that Party the
total assets of which constitute more than 10% of the consolidated assets of the
Party or the total revenues of which constitute more than 10% of the
consolidated revenues of that Party, in each case based on the unaudited interim
financial statements for the three months ended March 31, 2003; [NOTE - SHOULD
REVENUE THRESHOLD BE BASED ON 12 MONTH PERIOD?]

"MEETING DATE" means August 1, 2003 or such other date as the parties may agree
upon;

"OBCA" means the Business Corporations Act, R.S.O. 1990, c. B-16, as may be
amended;

"PARTIES" means Acetex, Acetex Sub and AT Plastics and "Party" means any one of
them;

"RETURNS" means all material reports, information statements and returns
relating to or as required to be filed in connection with any Taxes;

"SUBSIDIARY" means, with respect to a specified body corporate, any body
corporate of which more than 50% of the outstanding shares ordinarily entitled
to elect a majority of the board of directors thereof (whether or not shares of
any other class or classes shall or might be entitled to vote upon the happening
of any event or contingency) are at the time owned directly or indirectly by
such specified body corporate and shall include any body corporate, partnership,
joint venture or other entity over which it exercises direction or control or
which is in a like relation to a Subsidiary;

"SUPERIOR PROPOSAL" shall have the meaning as set forth in Section 5.5(a);

"TAX ACT" means the Income Tax Act, R.S.C. 1985, c. 1 (5th supp.), as amended;
and

"TAXES" means all taxes, however denominated, including any interest, penalties
or other additions that may become payable in respect thereof, imposed by any
Governmental Entity; which taxes shall include, without limiting the generality
of the foregoing, all income or profits taxes (including, but not limited to,
federal, state and provincial income taxes), capital taxes, payroll and employee
withholding taxes, unemployment insurance, social insurance taxes (including
Canada Pension Plan payments), sales and use taxes, ad valorem taxes, excise
taxes, franchise taxes, gross receipts taxes, business license taxes, occupation
taxes, real and personal property taxes, stamp taxes, environmental taxes,
transfer taxes, workers' compensation, pension assessment and other governmental
charges, and other obligations of the same or of a similar nature to any of the
foregoing, which one of the Parties or any of its Subsidiaries is required to
pay, withhold or collect.

1.2      INTERPRETATION

         The division of this Agreement into Articles, Sections, subsections and
paragraphs and the insertion of headings are for convenience of reference only
and shall not affect in any way the meaning or interpretation of this Agreement.
The Parties hereto acknowledge that their respective legal counsel have reviewed
and participated in settling the terms of this Agreement, and the Parties hereby
agree that any rule of construction to the effect that any ambiguity is to be
resolved against the drafting Party will not be applicable in the interpretation
of this Agreement.

1.3      ARTICLE REFERENCES

         Unless the contrary intention appears, references in this Agreement to
an Article, Section, subsection, paragraph or Schedule by number or letter or
both refer to the Article, Section, subsection, paragraph or Schedule,
respectively, bearing that designation in this Agreement.

1.4      NUMBER AND GENDER

         In this Agreement, unless the contrary intention appears, words
importing the singular include the plural and vice versa; words importing gender
shall include all genders; and words importing persons shall include a natural
person, firm, trust, partnership, association, corporation, joint venture or
government (including any Governmental Entity).

1.5      DATE FOR ANY ACTION

         If the date on which any action is required to be taken hereunder by
any of the Parties is not a day of business in the place where the action is
required to be taken, such action shall be required to be taken on the next
succeeding day which is a day of business in such place.

1.6      CURRENCY

         Unless otherwise stated, all references in this Agreement to sums of
money are expressed in lawful money of Canada.

1.7      SCHEDULES

         Schedules A, B, C, D, E and F annexed to this Agreement; being the
Articles of Amalgamation, the representations and warranties of Acetex and AT
Plastics, Governance Arrangements, Acetex Substitute Warrants #1 and #2 and AT
Plastics Support Obligations respectively, are incorporated by reference into
this Agreement and form a part hereof.

1.8      ACCOUNTING MATTERS

         Unless otherwise stated, all accounting terms used in this Agreement
shall have the meanings attributable thereto under Canadian generally accepted
accounting principles and all determinations of an accounting nature required to
be made shall be made in a manner consistent with, Canadian generally accepted
accounting principles.

1.9      MATERIAL

         The terms "material" and "materially" shall, when used in this
Agreement, be construed, measured or assessed on the basis of whether the matter
would materially affect a Party and its Subsidiaries, taken as a whole, or would
significantly impede the ability to complete the Amalgamation in accordance with
this Agreement.

1.10     DISCLOSURE

         Where in this Agreement reference is made to disclosure in writing, or
disclosed in writing on or prior to the date hereof, such disclosure shall be
made in writing in separate memorandum, dated the date hereof and signed by an
officer of each of Acetex or AT Plastics, as the case may be, and delivered to
the other immediately prior to the execution of this Agreement. Such disclosure
memoranda shall make specific reference to the applicable Sections and
paragraphs of this Agreement in respect of which such disclosure is made.

                                    ARTICLE 2
                                 THE COMBINATION

2.1  AMALGAMATION

(a)      Subject to the terms and conditions hereof:

         (i)   AT Plastics and Acetex Sub shall amalgamate pursuant to the
               provisions of section 175 of the OBCA and the Articles of
               Amalgamation shall be filed;

         (ii)  Shareholders of AT Plastics shall receive 1/6 of an Acetex Share
               for each AT Plastics Share held;

         (iii) Acetex shall receive one share of the Amalgamated Corporation for
               each share of Acetex Sub held.

(b)      On the Effective Date each AT Plastics Option will, without any further
         action on the part of any AT Plastics Optionholder, become an option
         (remaining under the AT Plastics Option Plan) to purchase the number of
         Acetex Shares determined by dividing the number of AT Plastics Shares
         subject to the particular AT Plastics Option at the Effective Date by
         6, at an exercise price per Acetex Shares equal to the exercise price
         per share in the particular AT Plastics Option at the Effective Time
         multiplied by 6. If the foregoing calculation results in an option
         being exercisable for a fraction of an Acetex Share then the number of
         Acetex Shares subject to such option will be rounded down to the
         nearest whole number of shares, and the exercise price per whole Acetex
         Share will be as determined above. The obligations of AT Plastics under
         the AT Plastics Options so converted shall be assumed by Acetex and
         Acetex shall be substituted for AT Plastics under the AT Plastics
         Option Plan, the address for exercise of such converted options shall
         be the registered office of Acetex in Calgary, Alberta, Attention:
         Corporate Secretary, and the AT Plastics Options will be further
         modified as necessary to effect such conversion. Except as provided in
         this subsection, the term, exerciseability and all other terms and
         conditions of the AT Plastics Options in effect at the Effective Date
         shall govern the AT Plastics Options as so converted.

(c)      On the Effective Date the AT Plastics Warrants shall be cancelled and
         extinguished and in consideration therefore Peninsula Fund III, L.P.
         shall be entitled to receive Acetex Substitute Warrant #1 entitling it
         to acquire 706,760 Acetex Shares at an exercise price equal to the
         closing price of the Acetex Shares on the Toronto Stock Exchange on the
         Effective Date or if there is no closing price on the Effective Date
         the next day on which there is a trade on the Toronto Stock Exchange
         and Connecticut General Life Insurance shall be entitled to receive
         Acetex Substitute Warrant #2 entitling it to acquire 141,352 Acetex
         Shares at an exercise price of $4.32.

(d)      As of the Effective Date:

         (i)   An AT Plastics Shareholder who is entitled to dissent with
               respect to the Amalgamation in accordance with the OBCA and who
               duly exercises such right; and

               (A)  is ultimately entitled to be paid fair value for such
                    shareholder's AT Plastics Shares shall be deemed to have
                    transferred such shares to the Amalgamated Corporation for
                    cancellation on the Effective Date; or

               (B)  is ultimately not entitled to be paid fair value for such
                    shareholder's AT Plastics Shares, for any reason, shall be
                    deemed to have participated in the Amalgamation on the same
                    basis as at and from the Effective Date as any other
                    non-dissenting AT Plastics Shareholder;

         (ii)  Acetex shall not be required to recognize AT Plastics
               Shareholders described in paragraph 2.1(c)(i)(A) above as holding
               AT Plastics Shares on or after the Effective Date and the names
               of such holders shall be deleted from the registers of AT
               Plastics;

         (iii) The Amalgamated Corporation will possess all of the property,
               rights and assets of each of Acetex Sub and AT Plastics and will
               assume all of their respective obligations;

         (iv)  The first director of the Amalgamated Corporation shall be Brooke
               N. Wade Vancouver, British Columbia;

         (v)   The by-laws of the Amalgamated Corporation shall be the by-laws
               of Acetex Sub;

         (vi)  The registered office of the Amalgamated Corporation shall be
               Suite 1800 BCE Place, 181 Bay Street, Toronto, Ontario M5J 2T9.

2.2      ISSUANCE OF CERTIFICATES REPRESENTING ACETEX SHARES

         At or promptly after the Effective Date, Acetex shall deposit with the
Depository, for the benefit of the former AT Plastics Shareholders who exchanged
AT Plastics Shares pursuant to the Amalgamation, certificates representing the
Acetex Shares issued pursuant to the Amalgamation. Upon surrender to the
Depository, at any of its offices specified in the Letter of Transmittal, of a
certificate which prior to the Effective Date represented outstanding AT
Plastics Shares, and such additional documents and instruments as the Depository
may reasonably require, the holder of such surrendered certificate shall be
entitled to receive in exchange therefor, and the Depository shall forthwith
deliver to such holder, a certificate representing that number (rounded down to
the nearest whole number) of Acetex Shares which such holder received pursuant
to the Amalgamation (together with any dividends or distributions with respect
thereto pursuant to Section 2.3 and any cash in lieu of fractional Acetex Shares
pursuant to Section 2.4), and any certificate so surrendered shall forthwith be
cancelled. In the event of a transfer of ownership of AT Plastics Shares which
is not registered in the transfer records of AT Plastics, a certificate
representing the proper number of Acetex Shares (together with any dividends or
distributions with respect thereto pursuant to Section 2.3 and any cash in lieu
of fractional Acetex Shares pursuant to Section 2.4) shall be delivered to a
transferee if the certificate formerly representing such AT Plastics Shares is
presented to the Depository at its offices as aforesaid, accompanied by the
foregoing documents together with all other documents required to evidence and
effect such transfer. Until surrendered as contemplated by this Section 2.2,
each certificate which prior to the Effective Date represented outstanding AT
Plastics Shares shall be deemed at any time after the Effective Date, to
represent only the right to receive upon such surrender (a) the certificate
representing Acetex Shares as contemplated by this Section 2.2, (b) a cash
payment in lieu of any fractional Acetex Shares as contemplated by Section 2.4,
and (c) any dividends or distributions with a record date on or after the
Effective Date theretofore paid or payable with respect to Acetex Shares as
contemplated by Section 2.3.

2.3      DIVIDENDS AND OTHER DISTRIBUTIONS

         No dividends or other distributions declared or made on or after the
Effective Date with respect to the Acetex Shares with a record date on or after
the Effective Date shall be paid to the holder of any certificates formerly
representing outstanding AT Plastics Shares which are not surrendered pursuant

to Section 2.2 and no cash payment in lieu of fractional shares shall be paid to
any such holder pursuant to Section 2.4 (and no interest will be earned and
payable thereon), unless and until the certificate representing such AT Plastics
Shares shall be surrendered in accordance with Section 2.2. Subject to
applicable law, at the time of such surrender of any such certificate (or, in
the case of clause (c) below, at the appropriate payment date), there shall be
paid to the holder of the Acetex Shares issued pursuant to the Amalgamation, in
all cases without interest, (a) the amount of any cash payable in lieu of a
fractional Acetex Shares to which such holder is entitled pursuant to Section
2.4, (b) the amount of dividends or other distributions with a record date on or
after the Effective Date theretofore paid with respect to such Acetex Shares,
and (c) the amount of dividends or other distributions with a record date on or
after the Effective Date but prior to surrender and a payment date subsequent to
surrender payable with respect to such Acetex Shares.

2.4      NO FRACTIONAL SHARES

         No certificates or scrip representing fractional Acetex Shares shall be
issued upon the surrender for exchange of certificates pursuant to Section 2.2,
and such fractional interests shall not entitle the owner thereof to vote or to
possess or exercise any rights as a security holder of Acetex. In lieu of any
such fractional interests, each person entitled thereto, will receive an amount
of cash (rounded to the nearest whole cent), without interest, equal to the
product of (a) such fractional interest, multiplied by (b) the average of the
closing trading price for Acetex Shares on the Toronto Stock Exchange for the
first three trading days on which Acetex Shares are traded following the
Effective Date, such amount to be provided to the Depository by Acetex upon
request.

2.5      LOST CERTIFICATES

         If any certificate which prior to the Effective Date represented
outstanding AT Plastics Shares has been lost, stolen or destroyed, upon the
making of an affidavit of that fact by the person claiming such certificate to
be lost, stolen or destroyed, the Depository will issue in exchange for such
lost, stolen or destroyed certificate, certificates representing Acetex Shares
(together with any dividends or distributions with respect thereto pursuant to
Section 2.3 and any cash in lieu of fractional Acetex Shares pursuant to Section
2.4) deliverable in respect thereof as determined in accordance with Section
2.2. When seeking such certificate and payment in exchange for any lost, stolen
or destroyed certificate, the person to whom certificates representing Acetex
Shares are to be issued shall, as a condition precedent to the issuance thereof,
give a bond satisfactory to Acetex and its transfer agent, in such sum as Acetex
may direct or otherwise indemnify Acetex and its transfer agent in a manner
satisfactory to Acetex and its transfer agent against any claim that may be made
against Acetex or its transfer agent with respect to the certificate alleged to
have been lost, stolen or destroyed.

2.6      EXTINGUISHMENT OF RIGHTS

         Any certificate which prior to the Effective Date represented
outstanding AT Plastics Shares and has not been deposited on or prior to the
tenth anniversary of the Effective Date shall cease to represent a claim or
interest of any kind or nature as a shareholder or a holder of Acetex Shares or
AT Plastics Shares. On such date, the Acetex Shares (and any dividends or
distributions with respect thereto pursuant to Section 2.3 and any cash in lieu
of fractional Acetex Shares pursuant to Section 2.4) to which the former holder
of the certificate referred to in the preceding sentence was ultimately entitled
shall be deemed to have been surrendered to Acetex, together with all
entitlements to dividends, distributions, cash and interest thereon held for
such former holder, for no consideration, and such shares and rights shall
thereupon be cancelled and the name of the former registered holder shall be
removed from the register of holders of such shares.

2.7      CONVERTED AT PLASTICS OPTION

         As soon as practical after the Effective Date, Acetex shall confirm in
writing to each of the former holders of AT Plastics Options the terms of their
options for Acetex Shares into which their AT Plastics Options have been
converted pursuant to subsection 2.1(b).

2.8      AT PLASTICS MEETING

         Subject to compliance with the terms and conditions contained herein,
AT Plastics shall call the AT Plastics Meeting on August 1, 2003, or such other
date as the Parties may agree to for the purpose of considering and, if deemed
advisable:

(a)  approving by a special resolution at the AT Plastics Meeting the AT
     Plastics Amalgamation Resolution in accordance with the terms and
     conditions hereof; and

(b)  passing such other resolutions as Acetex and AT Plastics may agree are
     necessary or desirable for the purposes hereof.

2.9      AT PLASTICS DIRECTORS' APPROVAL

(a)  AT Plastics represents as of the date hereof that its Board of Directors,
     after considering the Amalgamation, has determined unanimously that:

     (i) the Amalgamation is fair to AT Plastics Shareholders and AT Plastics
         Optionholders and is in the best interests of AT Plastics; and

     (ii) it will recommend in the AT Plastics Circular that AT Plastics
         Shareholders vote in favour of the AT Plastics Amalgamation Resolution;

(b)  AT Plastics represents as of the date hereof that its Board of Directors
     has received an opinion from W. Y. Campbell & Company, financial advisors
     to AT Plastics, to the effect that the consideration to be received by the
     AT Plastics Shareholders and AT Plastics Optionholders under the
     Amalgamation is fair to AT Plastics Shareholders and AT Plastics
     Optionholders from a financial point of view, subject, in each case, to the
     assumptions and limitations described in such opinion; and

(c)  AT Plastics represents as of the date hereof that its directors, Chief
     Executive Officer and Chief Financial Officer have advised it that they
     intend to vote all AT Plastics Shares held by them in favour of the AT
     Plastics Amalgamation Resolution and will, accordingly, so represent in the
     AT Plastics Circular.

                                    ARTICLE 3
                    REPRESENTATIONS AND WARRANTIES OF ACETEX

3.1      REPRESENTATIONS AND WARRANTIES

         Acetex hereby makes to AT Plastics the representations and warranties
as set forth in Schedule B to this Agreement and acknowledges that AT Plastics
is relying upon those representations and warranties in connection with entering
into this Agreement.

3.2      INVESTIGATION

         Any investigation by AT Plastics and its advisors shall not mitigate,
diminish or affect the representations and warranties of Acetex pursuant to this
Agreement.

3.3      SURVIVAL OF REPRESENTATIONS AND WARRANTIES

         The representations and warranties of Acetex contained in this
Agreement shall not survive the completion of the Amalgamation and shall expire
and be terminated and extinguished upon the Amalgamation becoming effective.

                                    ARTICLE 4
                  REPRESENTATIONS AND WARRANTIES OF AT PLASTICS

4.1      REPRESENTATIONS AND WARRANTIES

         AT Plastics hereby makes to Acetex the representations and warranties
as set forth in Schedule C to this Agreement and acknowledges that Acetex is
relying upon those representations and warranties in connection with entering
into this Agreement.

4.2      INVESTIGATION

         Any investigation by Acetex and its advisors shall not mitigate,
diminish or affect the representations and warranties of AT Plastics pursuant to
this Agreement.

4.3      SURVIVAL OF REPRESENTATIONS AND WARRANTIES

         The representations and warranties of AT Plastics contained in this
Agreement shall not survive the completion of the Amalgamation and shall expire
and be terminated and extinguished upon the Amalgamation becoming effective.

                                    ARTICLE 5
                                    COVENANTS

5.1      CORPORATE GOVERNANCE

         The Parties agree to use their best efforts to cause the Governance
Arrangements set out in Schedule D, including without limitation, the matters
contained in Section 1 of Schedule D, to become effective upon the Amalgamation
becoming effective or immediately thereafter.

5.2      CONSULTATION

         Acetex and AT Plastics agree to consult with each other in issuing any
press releases or otherwise making public statements with respect to this
Agreement or the Amalgamation and in making any filing with any Governmental
Entity or with any stock exchange with respect thereto. Each Party shall use all
reasonable commercial efforts to enable the other Party to review and comment on
all such press releases prior to the release thereof and to enable the other
Party to review and comment on such filings prior to the filing thereof. The
Parties agree to issue jointly a press release with respect to this Agreement as
soon as practicable, in a form acceptable to both Parties.

5.3      MUTUAL COVENANTS

         Each of the Parties covenants and agrees that, except as contemplated
in this Agreement or the Amalgamation, until the Effective Date or the day upon
which this Agreement is terminated, whichever is earlier:

(a)  except as previously disclosed in writing to, or with the prior written
     consent of, the other Party hereto, it shall, and shall cause each of its
     Subsidiaries to, conduct its and their respective businesses only in, and
     not take any action except in, the usual, ordinary and regular course of
     business and consistent with past practices;

(b)  except as previously disclosed in writing to the other Party, including in
     paragraph 2 of Schedule C hereto or except in respect of internal
     transactions involving a Party and its wholly-owned Subsidiaries or among
     such Subsidiaries, it shall not, without the prior written consent of the
     other Party hereto, which shall not be unreasonably withheld or delayed,
     directly or indirectly, including through a Subsidiary, do or permit to
     occur any of the following:

     (i)     issue, sell, pledge, lease, dispose of, encumber or agree to issue,
             sell, pledge, lease, dispose of or encumber (or permit any of its
             Subsidiaries to issue, sell, pledge, lease, dispose of, encumber or
             agree to issue, sell, pledge, lease, dispose of or encumber):

             (A)    any shares of, or any options, warrants, calls, conversion
                    privileges or rights of any kind to acquire any shares of it
                    or any of its Subsidiaries, except pursuant to the exercise
                    of stock options currently outstanding or under existing
                    share issuance plans which have been disclosed to the other
                    Party to this Agreement and except for stock options issued
                    to new hires in accordance with past practices and shares
                    issued in respect thereof; and as Acetex may deem
                    appropriate or necessary for purposes of refinancing the
                    debt of the Amalgamated Corporation; or

             (B)    except in the usual, ordinary and regular course of business
                    and consistent with past practice, any material assets of it
                    or any of its Material Subsidiaries;

     (ii)    amend or propose to amend its articles or by-laws or those of any
             of its Material Subsidiaries;

     (iii)   split, combine or reclassify any of its outstanding shares, or
             declare, set aside or pay any dividend or other distribution
             payable in cash, stock, property or otherwise with respect to its
             shares;

     (iv)    redeem, purchase or offer to purchase (or permit any of its
             Material Subsidiaries to redeem, purchase or offer to purchase) any
             shares or other securities of it or any of its Material
             Subsidiaries, unless otherwise required by the terms of such
             securities;

     (v)     reorganize, amalgamate or merge it or any of its Material
             Subsidiaries with any other person, corporation, partnership or
             other business organization whatsoever;

     (vi)    except in the usual, ordinary and regular course of business and
             consistent with past practice, acquire, agree to acquire, dispose
             of or agree to dispose of any person, corporation, partnership,
             joint venture or other business organization or division or

             acquire, agree to acquire, dispose of or agree to dispose of any
             assets, which, in each case, are individually or in the aggregate
             material;

     (vii)   except in the usual, ordinary and regular course of business and
             consistent with past practice: (A) satisfy or settle any claims or
             liabilities which are individually or in the aggregate material;
             (B) relinquish any contractual rights which are individually or in
             the aggregate material; or (C) enter into any interest rate,
             currency or commodity swaps, hedges or other similar financial
             instruments; or

     (viii)  except in the usual, ordinary and regular course of business and
             consistent with past practice, and except for the purpose of the
             renewal of or the replacement of existing credit facilities where
             such renewal or replacement facilities are for a principal amount
             approximately the same as or less than the principal amount of the
             facilities renewed or replaced, incur or commit to provide
             guarantees, incur any indebtedness for borrowed money or issue any
             amount of debt securities which are individually or in the
             aggregate material;

(c)  except as may be required under the Lender Consents, without the prior
     written consent of the other Party hereto, which shall not be unreasonably
     withheld or delayed, it shall not, and shall cause each of its Subsidiaries
     not to:

     (i)     other than as previously disclosed in writing to the other Party
             hereto or in the usual, ordinary and regular course of business and
             consistent with past practice or pursuant to existing employment,
             pension, supplemental pension, termination, compensation
             arrangements or policies, enter into or modify any employment,
             severance, collective bargaining or similar agreements, policies or
             arrangements with, or grant any bonuses, salary increases, stock
             options, pension or supplemental pension benefits, profit sharing,
             retirement allowances, deferred compensation, incentive
             compensation, severance or termination pay to, or make any loan to,
             any officers or directors of it or any Subsidiary;

     (ii)    other than as previously disclosed in writing to the other Party
             hereto or in the usual, ordinary and regular course of business and
             consistent with past practice or pursuant to existing employment,
             pension, supplemental pension, termination, compensation
             arrangements or policies, in the case of employees of it or any of
             its Subsidiaries who are not officers or directors, take any action
             with respect to the entering into or modifying of any employment,
             severance, collective bargaining or similar agreements, policies or
             arrangements or with respect to the grant of any bonuses, salary
             increases, stock options, pension or supplemental pension benefits,
             profit sharing, retirement allowances, deferred compensation,
             incentive compensation, severance or termination pay or any other
             form of compensation or profit sharing or with respect to any
             increase of benefits payable (provided that Acetex consents to the
             acceleration of vesting of all options under the AT Plastics Option
             Plan upon the Amalgamation becoming effective); or

     (iii)   except as set forth in the Parties' previously approved respective
             capital budgets (copies of which have been previously provided to
             the other Party), incur or commit to capital expenditures prior to
             the Effective Date individually or in the aggregate exceeding
             $250,000;

(d)  it shall use its reasonable commercial efforts (taking into account
     insurance market conditions and offerings and industry practices) to cause
     its current insurance (or re-insurance) policies not to be cancelled or
     terminated or any of the coverage thereunder to lapse, except where such

     cancellation, termination or lapse would not individually or in the
     aggregate have a material adverse effect, unless simultaneously with such
     termination, cancellation or lapse, replacement policies underwritten by
     insurance and re-insurance companies of nationally recognized standing
     providing coverage equal to or greater than the coverage under the
     cancelled, terminated or lapsed policies for substantially similar premiums
     are in full force and effect;

(e)  it shall:

     (i)     use its reasonable commercial efforts, and cause each of its
             Subsidiaries to use its reasonable commercial efforts, to preserve
             intact their respective business organizations and goodwill, to
             keep available the services of its officers and employees as a
             group and to maintain satisfactory relationships with suppliers,
             agents, distributors, customers and others having business
             relationships with it or its Subsidiaries;

     (ii)    not take any action, or permit any of its Subsidiaries to take any
             action that would interfere with or be inconsistent with the
             completion of the transactions contemplated hereunder or would
             render, or that reasonably may be expected to render, any
             representation or warranty made by it in this Agreement untrue in
             any material respect at any time prior to the Effective Date if
             then made (other than a change of recommendation in accordance with
             Section 5.4 and the communication of such change); and

     (iii)   promptly notify the other Party to this Agreement of any material
             adverse change, or any change which could reasonably be expected to
             become a material adverse change, in respect of its or any of its
             Subsidiaries' businesses or in the operation of its or any of its
             Subsidiaries' businesses or in the operation of its or any of its
             Subsidiaries' properties, and of any material Governmental Entity
             or third party complaints, investigations or hearings (or
             communications indicating that the same may be contemplated);

(f)  except in connection with the Lender Consents, it shall not settle or
     compromise any claim brought by any present, former or purported holder of
     any of its securities in connection with the transactions contemplated by
     this Agreement or the Amalgamation prior to the Effective Date without the
     prior written consent, not to be unreasonably withheld or delayed, of the
     other Party to this Agreement;

(g)  except in the usual, ordinary and regular course of business and consistent
     with past practice, or except as previously disclosed in writing to the
     other Party hereto or as required by applicable Laws, it and its
     Subsidiaries shall not enter into or modify in any material respect any
     contract, agreement, commitment or arrangement which new contract or series
     of related new contracts or modification to an existing contract or series
     of related existing contracts would be material to a Party hereto or which
     would have a material adverse effect on a Party hereto;

(h)  it shall use all reasonable commercial efforts to satisfy (or cause the
     satisfaction of) the conditions precedent to its obligations hereunder set
     forth in Article 6 to the extent the same is within its control and take,
     or cause to be taken, all other action and to do, or cause to be done, all
     other things necessary, proper or advisable under all applicable Laws to
     complete the Amalgamation, including using its reasonable commercial
     efforts to:

     (i)     obtain all necessary waivers, consents and approvals required to be
             obtained by it from other parties to loan agreements, leases and
             other contracts;

     (ii)    obtain all necessary consents, approvals and authorizations as are
             required to be obtained by it under any applicable Laws;

     (iii)   effect all necessary registrations and filings and submissions of
             information requested by Governmental Entities required to be
             effected by it in connection with the Amalgamation and participate
             and appear in any proceedings of either Party before Governmental
             Entities in connection with the Amalgamation;

     (iv)    oppose, lift or rescind any injunction or restraining order or
             other order or action seeking to stop, or otherwise adversely
             affecting the ability of the Parties to consummate, the
             transactions contemplated hereby or by the Amalgamation;

     (v)     fulfill all conditions and satisfy all provisions of this Agreement
             and the Amalgamation, including delivery of the certificates of
             their respective officers contemplated by Section 6.2 and Section
             6.3; and

     (vi)    cooperate with the other Party to this Agreement in connection with
             the performance by it of its obligations hereunder;

     (vii)   it shall not take any action, refrain from taking any action, or
             permit any action to be taken or not taken, inconsistent with this
             Agreement or which would reasonably be expected to significantly
             impede the consummation of the Amalgamation (other than a change of
             recommendation in accordance with Section 5.4 and the communication
             of such change);

(i)  subject to the Confidentiality Agreement and Section 5.7, it will, in all
     material respects, conduct itself so as to keep the other Parties to this
     Agreement fully informed as to the material decisions required to be made
     or actions required to be taken with respect to the operation of its
     business, provided that such disclosure is not otherwise prohibited by
     reason of a confidentiality obligation owed to a third party for which a
     waiver could not be obtained or is with respect to customer specific or
     competitively sensitive information relating to areas or projects where
     Acetex and AT Plastics are competitors;

(j)  it shall discuss and consider such Pre-Amalgamation Steps as may be
     proposed by the other Party hereto and implement such Pre-Amalgamation
     Steps that it considers to be in the best interests of its shareholders,
     provided such steps are agreed to in writing by the other Party hereto;

(k)  it shall make or cooperate as necessary in the making of all necessary
     filings and applications under all applicable Laws required in connection
     with the transactions contemplated herein and take all reasonable action
     necessary to be in compliance with such Laws; and

(l)  it shall use its reasonable commercial efforts to conduct its affairs so
     that all of its representations and warranties contained herein shall be
     true and correct in all material respects on and as of the Effective Date
     as if made thereon.

5.4      RECOMMENDATION OF BOARDS OF DIRECTORS

         The AT Plastics Circular shall include the recommendation and
representation of the AT Plastics Board of Directors to its security holders in
respect of the Amalgamation as set out in Section 2.9. Notwithstanding any other
provision of this Agreement, the Board of Directors of AT Plastics may change
its recommendation to its securityholders in respect of the Amalgamation from
that set forth in

Sections 2.9, if such Board concludes, in good faith, after receiving the advice
of outside counsel and financial advisors that is reflected in the minutes of a
meeting of the Board, that such action is necessary for such Board to act in a
manner consistent with its fiduciary duty or applicable Laws and, in the event
that Sections 5.5, 5.6 or 8.2 are applicable, if such Party and its Board are in
compliance with those sections and such Party has paid any fee applicable under
Article 8. The foregoing shall not relieve the Board of Directors of AT Plastics
from its obligation to proceed to call and hold the AT Plastics Meeting, solicit
proxies for such meeting and to hold the vote of AT Plastics Shareholders.

5.5      MUTUAL COVENANT REGARDING NON-SOLICITATION

(a)  Neither Acetex nor AT Plastics, nor their respective Subsidiaries shall,
     directly or indirectly, through any officer, director, employee,
     representative or agent of Acetex or AT Plastics, as the case may be,
     solicit, initiate, invite or knowingly encourage (including by way of
     furnishing confidential information or entering into any form of agreement,
     arrangement or understanding) the initiation of or participate in, any
     inquiries or proposals regarding an Acquisition Proposal, provided that
     nothing contained in this Section 5.5 or other provisions of this Agreement
     shall prevent the Board of Directors of Acetex or AT Plastics from
     considering, negotiating, approving or recommending to its shareholders an
     agreement in respect of an unsolicited bona fide written Acquisition
     Proposal (i) in respect of which any required financing has been
     demonstrated to the satisfaction of the Board of Directors of the Party
     subject to the Acquisition Proposal, acting in good faith, to be reasonably
     likely to be obtained, (ii) which is not subject to a due diligence access
     condition which allows access to the books, records and personnel of a
     Party hereto or any of its Subsidiaries or their representatives beyond
     5:00 p.m. (Eastern Daylight Time) on the third business day after which
     access is afforded to the person making the Acquisition Proposal (provided,
     however, the foregoing shall not restrict the ability of such person to
     continue to review the information provided); (iii) in respect of which the
     Board of Directors of the Party subject to the Acquisition Proposal
     determines (having consulted outside counsel) that in the exercise of its
     fiduciary duty it would be necessary for such Board of Directors to take
     such action in order to avoid breaching its fiduciary duties; and (iv) in
     respect of which the Board of Directors of the Party subject to the
     Acquisition Proposal determines in good faith, after consultation with
     financial advisors, if consummated in accordance with its terms, would
     result in a transaction more favourable to its shareholders than the
     Amalgamation (any such Acquisition Proposal that satisfies clauses (i)
     through (iv) above being referred to herein as a "Superior Proposal").

(b)  Subject to the ability of the Parties to carry on business in accordance
     with Section 5.3, Acetex and AT Plastics shall continue to refrain from
     participating in any discussions or negotiations with any parties (other
     than the other Party hereto) with respect to any potential Acquisition
     Proposal. Acetex and AT Plastics agree not to release any third party from
     any confidentiality agreement in respect of an Acquisition Proposal to
     which such third party is a party. Acetex and AT Plastics further agree not
     to release any third party from any standstill agreement to which such
     third party is a party, unless such third party has made a Superior
     Proposal. Acetex and AT Plastics shall immediately request the return or
     destruction of all confidential information provided to any third parties
     who have previously entered into a confidentiality agreement in respect of
     an Acquisition Proposal with Acetex or AT Plastics, as the case may be, and
     shall use all reasonable efforts to ensure that such requests are honoured.

(c)  Each of Acetex and AT Plastics shall immediately notify the other Party
     (orally and in writing) of any future Acquisition Proposal of which such
     Party's directors or senior officers become aware, or any amendments to the
     foregoing, or any request for non-public information relating to Acetex or
     AT Plastics, as the case may be, or any of such Party's Material
     Subsidiaries in connection with

     an Acquisition Proposal or for access to the properties, books or records
     or for a list of the shareholders of such Party or any Material Subsidiary
     by any person or entity that informs such Party or such Material Subsidiary
     that it is considering making an Acquisition Proposal. Such notice shall
     include a copy, of all written communications and a description of the
     material terms and conditions of any proposal and provide such details of
     the proposal, inquiry or contact as the other Party hereto may reasonably
     request, including without limitation the identity of the person and
     controlling person, if any, making such proposal, inquiry or contact.

(d)  If Acetex or AT Plastics receives a request for material non-public
     information from a person who proposes a bona fide Acquisition Proposal in
     respect of Acetex or AT Plastics, and the Board of Directors of such Party
     determines that such proposal would be a Superior Proposal pursuant to
     Section 5.5(a), assuming the satisfactory outcome of a due diligence
     condition which conforms to Section 5.5(a), then, and only in such case,
     the Board of Directors may, subject to the execution of a confidentiality
     agreement containing a standstill provision substantially similar to that
     contained in Article 7 of the Confidentiality Agreement (provided, however,
     the person making the Acquisition Proposal shall not be precluded
     thereunder from making the Acquisition Proposal as proposed) and provided
     such Party sends a copy of any such confidentiality agreement to the other
     Party immediately upon its execution, only provide such person with access,
     in accordance with Section 5.5(a) to the same information previously
     provided to the other Party. The Party providing access shall provide the
     other Party with a list of the information provided to the person making
     the Superior Proposal.

(e)  Each Party hereto shall ensure that its directors and officers and its
     Subsidiaries and any financial advisors or other advisors or
     representatives retained by it are aware of the provisions of this Section,
     and it shall be responsible for any breach of this Section 5.5 by its
     financial advisors or other advisors or representatives.

5.6      NOTICE OF SUPERIOR PROPOSAL DETERMINATION

         Neither Acetex nor AT Plastics shall accept, approve or recommend or
enter into any agreement (except for a confidentiality agreement pursuant to
Section 5.5(d)) in respect of an Acquisition Proposal on the basis that it
constitutes a Superior Proposal unless (i) it has provided the other Party
hereto with a copy of the Acquisition Proposal document which has been
determined to be a Superior Proposal, with such deletions as are necessary to
protect confidential portions of such Acquisition Proposal document, provided
that the material terms, conditions and the identity of the person, and
controlling person, if any, making the Acquisition Proposal may not be deleted;
(ii) five (5) business days (the "Notice Period") shall have elapsed from the
later of the date the other Party received notice of the determination to
accept, approve or recommend an agreement in respect of such Acquisition
Proposal, and the date such Party received a copy of the Acquisition Proposal
document; (iii) it has paid to the other Party the fee payable under Sections
8.1 or 8.2, as the case may be; and (iv) it concurrently terminates this
Agreement pursuant to Sections 9.1(e) or (f), as the case may be. During the
Notice Period, the Party receiving or subject to the Superior Proposal shall
provide a reasonable opportunity to the other Party to consider, discuss and
offer such adjustments in the terms and conditions of this Agreement as would
enable the Party receiving the Superior Proposal to proceed with its
recommendation to securityholders with respect to the Amalgamation; provided
however that any such adjustment shall be at the discretion of the Parties at
the time. The Board of Directors of the Party receiving or subject to the
Superior Proposal will review in good faith any offer made by the other Party to
amend the terms of this Agreement in order to determine, in its discretion, as
part of its exercising its fiduciary duties, whether the proposed amendments
would, upon acceptance, result in such Superior Proposal ceasing to be a
Superior Proposal. If the Board of Directors of the Party determines that the
Superior Proposal would cease to be a Superior Proposal, it will so advise the
other Party and will accept the offer by the other Party to amend the terms

of this Agreement and the Parties agree to take such actions and execute such
documents as are necessary to give effect to the foregoing. If the Board of
Directors of the Party subject to or receiving the Superior Proposal continues
to believe, in good faith and after consultation with financial advisors and
outside counsel, that such Superior Proposal remains a Superior Proposal and
therefore rejects the amendments offered by the other Party hereto, that Party
may, subject to the terms of this Agreement including the payment of applicable
fees under Article 8, accept, approve, recommend or enter into an agreement,
understanding or arrangement in respect of such Superior Proposal. Each
successive material modification of any Acquisition Proposal or a Superior
Proposal shall constitute a new Acquisition Proposal for the purposes of this
Section 5.6 and shall require a five (5) business day Notice Period from the
date such amendment is communicated to the other Party hereto (other than an
amendment to improve upon a Superior Proposal in respect of which the other
Party has been provided with an opportunity to amend the terms of this Agreement
and such Superior Proposal has not ceased to be a Superior Proposal prior to the
proposed amendment). Information provided hereunder shall constitute
confidential information under the Confidentiality Agreement.

5.7      ACCESS TO INFORMATION

         Subject to the Confidentiality Agreement and applicable Laws, upon
reasonable notice, AT Plastics shall (and shall cause each of its Subsidiaries
to) afford the officers, employees, counsel, accountants and other authorized
representatives and advisors ("Representatives") of Acetex access, during normal
business hours from the date hereof and until the earlier of the Effective Date
or the termination of this Agreement, to its properties, books, contracts and
records as well as to its management personnel, and, during such period, AT
Plastics shall (and shall cause each of its Subsidiaries to) furnish promptly to
Acetex all information concerning its business, properties and personnel as
Acetex may reasonably request. Subject to the Confidentiality Agreement and
applicable Laws, upon reasonable notice, Acetex shall (and shall cause each of
its Subsidiaries to) provide the same access to AT Plastics and its
Representatives on the same terms and conditions. Nothing in the foregoing shall
require Acetex or AT Plastics to disclose information subject to a written
confidentiality agreement with third parties or competitively sensitive
information relating to areas or projects where Acetex and AT Plastics are
competitors. For greater certainty, until the earlier of the Effective Date and
the termination of this Agreement, access to and exchange of competitively
sensitive confidential information ("Confidential Data") as between the Parties
shall be limited to that which is reasonably necessary for the purposes of
securing all necessary regulatory approvals, the preparation and settlement of
definitive documents and the advancement of the Amalgamation as contemplated
herein and shall be further limited such that the dissemination of such
Confidential Data shall be confined to those representatives of the Parties and
their advisors who have a need to know such information for these purposes and
who agree to respect such confidentiality in their dealings with such
Confidential Data. In particular, with reference to access to and the sharing of
Confidential Data of one Party with representatives of the other Party for the
purposes of preparing any filings or submissions under the Competition Act in
respect of the Amalgamation, the general principle which shall be applied is
that such information shall be made available to, exchanged or shared with
counsel to the Parties rather than the Parties or their representatives.

5.8      COVENANTS OF AT PLASTICS

         AT Plastics covenants and agrees that, except as contemplated in this
Agreement or pursuant to the Amalgamation, until the Effective Date or the day
upon which this Agreement is terminated, whichever is earlier, it will:

(a)  in a timely and expeditious manner:

     (i)     prepare, in consultation with Acetex, and file the AT Plastics
             Circular in all jurisdictions where the same is required to be
             filed and mail the same in accordance with all applicable Laws, in
             all jurisdictions where the same is required, complying in all
             material respects with all applicable Laws on the date of mailing
             thereof and containing full, true and plain disclosure of all
             material facts relating to the Amalgamation and AT Plastics and not
             containing any misrepresentation, as defined under such applicable
             Laws, with respect thereto;

     (ii)    solicit proxies for the approval of the AT Plastics Amalgamation
             Resolution in accordance with the AT Plastics Circular;

     (iii)   convene the AT Plastics Meeting and distribute copies of this
             Agreement (or a written summary thereof prepared by AT Plastics in
             form and substance satisfactory to Acetex acting reasonably); and

     (iv)    provide notice to Acetex of the AT Plastics Meeting and allow
             Acetex's representatives to attend the AT Plastics Meeting; and

     (v)     conduct the AT Plastics Meeting in accordance with the by-laws of
             AT Plastics and any instrument governing such meeting, as
             applicable, and as otherwise required by applicable Laws;

(b)  in a timely and expeditious manner, prepare (in consultation with Acetex)
     and file any mutually agreed (or otherwise required by applicable Laws)
     amendments or supplements to the AT Plastics Circular with respect to the
     AT Plastics Meeting and mail the same in accordance with all applicable
     Laws, in all jurisdictions where the same is required, complying in all
     material respects with all applicable legal requirements on the date of
     mailing thereof;

(c)  subject to the satisfaction of the conditions precedent in favour of AT
     Plastics and the receipt of the written confirmation of Acetex that the
     conditions precedent in favour of Acetex have been satisfied, file the
     Articles of Amalgamation with the Director in order for the Amalgamation to
     become effective;

(d)  except for individual proxies and other non-substantive communications,
     furnish promptly to Acetex a copy of each notice, report, report of proxies
     submitted, schedule or other document or communication delivered, filed or
     received by AT Plastics in connection with the Amalgamation the AT Plastics
     Meeting or any other meeting of AT Plastics security holders or class of
     security holders which all such holders, as the case may be, are entitled
     to attend, any filings under applicable Laws and any dealings with
     regulatory agencies in connection with, or in any way affecting, the
     transactions contemplated herein;

(e)  subject to Section 5.7, in a timely and expeditious manner, provide to
     Acetex all information as may be reasonably requested by Acetex with
     respect to AT Plastics and its Subsidiaries and their respective businesses
     and properties; and

(f)  assist and cooperate in the preparation and filing with all applicable
     securities commissions or similar securities regulatory authorities of
     Canada of all necessary applications to seek exemptions, if required, from
     the prospectus, registration and other requirements of the applicable
     securities laws of Canada for the issue by Acetex of Acetex Shares pursuant
     to the terms of the Amalgamation and the resale of such Acetex Shares.

5.9      COVENANTS OF ACETEX

         Acetex covenants and agrees that, except as contemplated in this
Agreement or pursuant to the Amalgamation, until the Effective Date or the day
upon which this Agreement is terminated, whichever is earlier, it will:

(a)  in a timely and expeditious manner prepare, in consultation with AT
     Plastics, the AT Plastics Circular in so far as information contained
     therein relates to Acetex and provide to AT Plastics for inclusion in the
     circular all such information and financial statements required under
     applicable Laws which information shall constitute full, true and plain
     disclosure of all material facts relating to the Amalgamation and Acetex
     and shall not contain any misrepresentation, as defined under such
     applicable Laws, with respect thereto and shall provide a certificate to
     that effect in the Circular.

(b)  in a timely and expeditious manner, prepare (in consultation with AT
     Plastics) and file any mutually agreed (or otherwise required by applicable
     Laws) amendments or supplements to the AT Plastics Circular with respect to
     the Acetex Meeting and mail the same in accordance with all applicable
     Laws, in all jurisdictions where the same is required, complying in all
     material respects with all applicable legal requirements on the date of
     mailing thereof;

(c)  except for non-substantive communications, furnish promptly to AT Plastics
     a copy of each notice, report, schedule or other document or communication
     delivered, filed or received by Acetex in connection with the Amalgamation,
     any meeting of Acetex Security holders or class of security holders which
     all such holders, as the case may be, are entitled to attend, any filings
     under applicable Laws and any dealings with regulatory agencies in
     connection with, or in any way affecting, the transactions contemplated
     herein;

(d)  subject to Section 5.7, in a timely and expeditious manner, provide to AT
     Plastics all information as may be reasonably requested by AT Plastics with
     respect to Acetex and its Subsidiaries and their respective businesses and
     properties;

(e)  prepare and file with all applicable securities commissions or similar
     securities regulatory authorities of Canada all necessary applications to
     seek exemptions if required by applicable securities Laws or this
     Agreement, from the prospectus, registration and other requirements of the
     applicable securities Laws of Canada for the issue by Acetex of Acetex
     Shares pursuant to the terms of the Amalgamation and the resale of such
     Acetex Shares;

(f)  apply for and use all reasonable efforts to obtain the listing on The
     Toronto Stock Exchange, as of the Effective Date, of the Acetex Shares
     which are to be issued pursuant to the Amalgamation and issuable upon the
     exercise of the AT Plastics Options;

(g)  subject to the satisfaction of the conditions precedent in favour of Acetex
     and the receipt of the written confirmation of AT Plastics that the
     conditions precedent in favour of AT Plastics have been satisfied, cause
     Acetex Sub to file the Articles of Amalgamation with the Director in order
     for the Amalgamation to become effective;

(h)  issue the Acetex Shares, in accordance with the terms of the terms hereof
     to those AT Plastics Shareholders who are entitled to receive Acetex Shares
     pursuant to the Amalgamation, which Acetex Shares shall be validly issued
     as fully paid and non-assessable shares;

(i)  assume, in accordance with the terms hereof, the obligations of AT Plastics
     under the AT Plastics Options in accordance with the terms hereof; and

(j)  issue the Acetex Substitute Warrants #1 and Acetex Substitute Warrants #2
     in accordance with the terms hereof.

5.10     INDEMNIFICATION OF DIRECTORS AND OFFICERS, CORPORATE INDEMNITIES AND
         INSURANCE

(a)  For a period of six years after the Effective Date, AT Plastics shall and
     Acetex shall cause AT Plastics to (i) maintain in effect the current or
     substantially similar (subject to any changes required by applicable Laws
     in the jurisdiction in which AT Plastics may exist from time to time)
     provisions regarding indemnification of officers and directors contained in
     the constating documents of AT Plastics and its Subsidiaries and any
     directors', officers' or employees' indemnification agreements of AT
     Plastics and its Subsidiaries; (ii) maintain in effect the current policies
     of directors' and officers' liability insurance and fiduciary liability
     insurance maintained by AT Plastics and its Subsidiaries (provided that
     Acetex may substitute therefor policies of at least the same coverage and
     amounts containing terms and conditions which are, in the aggregate, not
     materially less advantageous to the insured) with respect to claims arising
     from facts or events which occurred on or before the Effective Date; and
     (iii) indemnify the directors and officers of AT Plastics and its
     Subsidiaries to the fullest extent to which AT Plastics and its
     Subsidiaries are permitted to indemnify such officers and directors under
     its articles and bylaws and applicable Laws in the jurisdiction in which AT
     Plastics may continue to exist from time to time. Acetex shall
     unconditionally and irrevocably guarantee for the benefit of such
     directors, officers and employees, the obligations of AT Plastics and its
     Subsidiaries under the foregoing indemnification arrangements.

(b)  The provisions of this Section 5.10 are (i) for the benefit of, and shall
     be enforceable by, each indemnified party, his or her heirs, executors,
     administrators and other legal representatives; and (ii) are in addition
     to, and not in substitution for, any other rights to indemnification or
     contribution that any such person may have by contract or otherwise, and
     such rights shall be held by AT Plastics or Acetex, as the case may be, in
     trust for such person provided however that no approval of any beneficiary
     of such trust shall be required in connection with an amendment or
     variation of this Section 5.10 prior to the Effective Date.

(c)  Notwithstanding the foregoing, this Section 5.10 shall not restrict or
     prohibit Acetex or AT Plastics from entering into any transaction
     subsequent to the Effective Date, including a merger, amalgamation,
     arrangement, dissolution, liquidation, reorganization of capital or sale of
     all or substantially all of the assets of Acetex or AT Plastics or a
     Subsidiary of either of them to another entity, causing Acetex, AT Plastics
     or a Subsidiary of either of them to assume the liabilities of another
     entity or otherwise reorganizing or restructuring Acetex, AT Plastics or a
     Subsidiary of either of them or their respective businesses.

5.11     MERGER OF COVENANTS

         The covenants set out in this Agreement, except for Section 5.10 and
Article 10 (other than Section 10.5), shall not survive the completion of the
Amalgamation, and shall expire and be terminated without recourse between the
Parties upon such completion.

                                    ARTICLE 6
                                   CONDITIONS

6.1      MUTUAL CONDITIONS

         The obligations of AT Plastics and Acetex to complete the transactions
contemplated hereby are subject to fulfillment of the following conditions on or
before the Effective Date or such other time as is specified below:

(a)  the AT Plastics Amalgamation Resolutions set forth in the AT Plastics
     Circular shall have been passed at the AT Plastics Meeting, in accordance
     with the by-laws of AT Plastics;

(b)  the Effective Date shall be on or before September 30, 2003, subject to any
     extension of up to thirty (30) days from September 30, 2003, available to a
     Party pursuant to Section 6.4;

(c)  there shall be no action taken under any Laws or by any Governmental
     Entity, that:

     (i)     makes illegal or otherwise directly or indirectly restrains,
             enjoins or prohibits the Amalgamation or any other transactions or
             agreements contemplated herein; or

     (ii)    results in a judgment or assessment of damages, directly or
             indirectly, which is materially adverse to the transactions or
             agreements contemplated herein;

(d)  if applicable, the relevant waiting period in section 123 of the
     Competition Act shall have expired and (i) an advance ruling certificate
     ("ARC") pursuant to section 102 of the Competition Act shall have been
     issued by the Commissioner of the Competition Bureau ("Commissioner")
     appointed under the Competition Act; or (ii) a "no action letter"
     satisfactory to Acetex and AT Plastics, acting reasonably, indicating that
     the Commissioner has determined not to make an application for an order
     under section 92 of the Competition Act shall have been received from the
     Commissioner, and any terms and conditions attached to any such letter
     shall be acceptable to Acetex and AT Plastics, acting reasonably; and, in
     addition, in the event that the ARC or "no action" letter described in (i)
     or (ii) in the foregoing is issued, there shall be no threatened or actual
     application by the Commissioner for an order under section 92 or 100 of the
     Competition Act;

(e)  all other consents, waivers, permits, orders and approvals of any
     Governmental Entity (other than as contemplated in Sections 6.1(g) or
     6.1(i)) or other person, and the expiry or termination of any waiting
     periods, in connection with, or required to permit, the consummation of the
     Amalgamation, the failure of which to obtain or the non-expiry of which
     would be materially adverse to Acetex or AT Plastics, as the case may be,
     or materially impede the completion of the Amalgamation, shall have been
     obtained, received or occurred on terms that will not have a material
     adverse effect on either Acetex or AT Plastics and reasonably satisfactory
     evidence thereof shall have been delivered to each Party;

(f)  The Toronto Stock Exchange shall have conditionally approved for listing,
     subject to compliance with the usual requirements of such exchanges, the
     Acetex Shares issuable pursuant to the terms of the Amalgamation and
     issuable upon the exercise of the AT Plastics Options;

(g)  Acetex and AT Plastics shall have each received a legal opinion from United
     States counsel to Acetex and United States counsel to AT Plastics in
     connection with the Amalgamation, each in form and substance satisfactory
     to Acetex and to AT Plastics, acting reasonably, to the effect that,

     assuming compliance with the procedures specified in such legal opinions,
     the issuance of Acetex Shares pursuant to the terms of the Amalgamation are
     exempt from the registration requirements of the United States Securities
     Act of 1933, as amended;

(h)  any required prospectus exemptions under Canadian federal, provincial or
     territorial securities Laws and any required registration exemptions under
     state securities Laws shall have been obtained or perfected or be otherwise
     available so that the Acetex Shares issuable pursuant to the terms of the
     Amalgamation shall not be subject to any prospectus or registration
     requirements or resale restrictions under any of such securities Laws,
     other than such requirements or restrictions in respect of control persons
     or affiliates and subject to requirements of general application; and

(i)  rights of dissent shall not have been exercised, nor shall proceedings have
     been initiated to exercise such rights by AT Plastics Shareholders which
     exceed 10% of the AT Plastics Shares issued and outstanding or such other
     amount which in the opinion of the board of directors of Acetex and AT
     Plastics, acting reasonably, may have a material adverse effect upon the
     business, property or financial condition of Acetex or AT Plastics.

The foregoing conditions are for the mutual benefit of AT Plastics and Acetex
and may be waived, in whole or in part, in writing by both AT Plastics and
Acetex at any time. If any of the said conditions precedent shall not be
complied with or waived in writing as aforesaid on or before the date required
for the performance thereof, either AT Plastics or Acetex may rescind and
terminate this Agreement by written notice to the other Party (provided such
non-compliance did not arise from the acts or omissions of the Party purporting
to rescind and terminate this Agreement) and shall have no other right or
remedy, except as set forth in Article 8 or 9.

6.2      AT PLASTICS CONDITIONS

         The obligation of AT Plastics to complete the transactions contemplated
herein is subject to the fulfillment of the following conditions on or before
the Effective Date or such other time as specified below:

(a)  the representations and warranties made by Acetex in this Agreement shall,
     in the reasonable judgment of AT Plastics, be true and correct as of the
     Effective Date as if made on and as of such date (except to the extent such
     representations and warranties speak as of an earlier date or except as
     affected by transactions contemplated or permitted by this Agreement or
     except for any failures or breaches of representations and warranties which
     individually or in the aggregate would not have, or would not reasonably be
     expected to have, a material adverse effect on Acetex or materially impede
     the completion of the Amalgamation or the transactions contemplated by this
     Agreement), and Acetex shall have provided to AT Plastics the certificate
     of a senior officer of Acetex certifying such accuracy on the Effective
     Date;

(b)  Acetex shall have complied with its covenants herein, except to the extent
     the failure, in the reasonable judgment of AT Plastics, to comply with such
     covenants has not had, or would not reasonably be expected to have,
     individually or in the aggregate a material adverse effect on Acetex or
     materially impede the completion of the Amalgamation or the transactions
     contemplated by this Agreement, and Acetex shall have provided to AT
     Plastics the certificate of a senior officer of Acetex certifying that
     Acetex has so complied with its covenants herein; and

(c)  from the date hereof and up to and including the Effective Date, there
     shall have been no change, effect, event, occurrence or change in state of
     facts which has had or, in the reasonable judgment of AT Plastics has or
     would reasonably be expected to have, a material adverse effect on Acetex.

         The foregoing conditions precedent are for the benefit of AT Plastics
and may be waived, in whole or in part, by AT Plastics in writing at any time.
If any of the said conditions shall not be complied, with or waived in writing
by AT Plastics on or before the date required for their performance and provided
such non-compliance did not arise from the acts or omissions of AT Plastics,
then AT Plastics may rescind and terminate this Agreement by written notice to
Acetex and shall have no other right or remedy against Acetex, except as set
forth in Article 8 or 9.

6.3      ACETEX CONDITIONS

         The obligation of Acetex to complete the transactions contemplated
herein is subject to the fulfillment of the following conditions on or before
the Effective Date or such other time as specified below:

(a)  the representations and warranties made by AT Plastics in this Agreement
     shall be, in the reasonable judgment of Acetex, true and correct as of the
     Effective Date as if made on and as of such date (except to the extent such
     representations and warranties speak as of an earlier date or except as
     affected by transactions contemplated or permitted by this Agreement or
     except for any failures or breaches of representations and warranties which
     individually or in the aggregate would not have, or would not reasonably be
     expected to have, a material adverse effect on AT Plastics or materially
     impede the completion of the Amalgamation or the transactions contemplated
     by this Agreement), and AT Plastics shall have provided to Acetex the
     certificate of a senior officer of AT Plastics certifying such accuracy on
     the Effective Date;

(b)  AT Plastics shall have complied with its covenants herein, except to the
     extent the failure, in the reasonable judgment of Acetex, to comply with
     such covenants has not had, or would not reasonably be expected to have,
     individually or in the aggregate a material adverse effect on AT Plastics
     or materially impede the completion of the Amalgamation or the transactions
     contemplated by this Agreement, and AT Plastics shall have provided to
     Acetex the certificate of a senior officer of AT Plastics certifying that
     AT Plastics has so complied with its covenants herein;

(c)  from the date hereof and up to and including the Effective Date, there
     shall have been no change, effect, event, occurrence or change in state of
     facts which has had or in the reasonable judgment of Acetex has or would
     reasonably be expected to have, a material adverse effect on AT Plastics;

(d)  Acetex, acting reasonably shall have determined that it is able to arrange
     financing which in its opinion is adequate to refinance the debt of the
     Amalgamated Corporation such that Acetex will be in compliance with the
     terms and conditions of its 10 7/8% Senior Notes due 2009 on the Effective
     Date;

(e)  AT Plastics has entered into agreements in form and substance satisfactory
     to Acetex providing that after the Effective Date the Amalgamated
     Corporation may refinance its debts owing to AT Plastics Warrantholders for
     the principal amount thereof and an additional amount not to exceed
     US$850,000 and which provide for the cancellation and extinguishment of the
     AT Plastics Warrants in consideration for the Acetex Substitute Warrants #1
     and Acetex Substitute Warrants #2; and

(f)  Acetex is satisfied that AT Plastics has not issued any options or issued
     warrants to acquire its stock save as disclosed in writing since March 31,
     2003.

         The foregoing conditions precedent are for the benefit of Acetex and
may be waived, in whole or in part, by Acetex in writing at any time. If any of
the said conditions shall not be complied with or waived in writing by Acetex on
or before the date required for their performance and provided such
non-compliance did not arise from the acts or omissions of Acetex, then Acetex
may rescind and terminate this Agreement by written notice to AT Plastics and
shall have no other right or remedy against AT Plastics, except as set forth in
Article 8 or 9.

6.4      NOTICE AND CURE PROVISIONS

         Each of AT Plastics and Acetex will give prompt notice to the other of
the occurrence, or failure to occur, at any time from the date hereof until the
Effective Date, of any event or state of facts which occurrence of failure
would, or would be likely to:

(a)  cause any of the representations or warranties of any Party contained
     herein to be untrue or inaccurate in any material respect on the date
     hereof; or

(b)  result in the failure to comply with or satisfy any covenant, condition or
     agreement to be complied with or satisfied by any Party hereunder.

         No Party may elect not to complete the transactions contemplated hereby
pursuant to the non-fulfillment of the conditions precedent contained in
Sections 6.1, 6.2 and 6.3 or, any termination right arising therefrom and no
payments are payable pursuant to Sections 8.1 or 8.2 as a result of such
election unless forthwith and in any event prior to the filing of the Articles
of Amalgamation for acceptance by the Director, the Party intending to rely
thereon has delivered a written notice to the other Party specifying in
reasonable detail all breaches of covenants, representations and warranties or
other matters which the Party delivering such notice is asserting as the basis
for the non-fulfillment of the applicable condition precedent or termination
right, as the case may be. If any such notice is delivered, provided that a
Party is proceeding diligently to cure such matter and such matter is capable of
being cured (except matters arising out of the failure to make appropriate
disclosure in the disclosure memoranda delivered on the date of execution of
this Agreement pursuant to Section 1.10 hereof) no Party may terminate this
Agreement until the later of September 30, 2003 and (except with respect to the
condition set out in 6.3(d)) the expiration of a period of thirty (30) days from
such notice and then only if such matter is not cured in all material respects.
If such notice has been delivered prior to the date of the AT Plastics Meeting,
such meeting shall be postponed until the expiry of such period. If such notice
has been delivered prior to the filing of the Articles of Amalgamation with the
Director, such application and such filing shall be postponed until the expiry
of such period.

6.5      MERGER OF CONDITIONS

         The conditions set out in Sections 6.1, 6.2 and 6.3 shall be
conclusively deemed to have been satisfied, waived or released upon the filing
of Articles of Amalgamation as contemplated by this Agreement. Notwithstanding
the foregoing, the covenants set forth in Section 5.10 and Article 10 (other
than Section 10.5) shall survive the filing of Articles of Amalgamation, as
contemplated by this Agreement.

                                    ARTICLE 7
                                    AMENDMENT

7.1      AMENDMENT

         This Agreement may, at any time and from time to time before or after
the holding of the AT Plastics Meeting, be amended by mutual written agreement
of the Parties hereto without further notice to or authorization on the part of
their respective shareholders, and any such amendment may, without limitation:

(a)  change the time for performance of any of the obligations or acts of the
     Parties;

(b)  waive any inaccuracies or modify any representation contained herein or in
     any document delivered pursuant hereto;

(c)  waive compliance with or modify any of the covenants herein contained and
     waive or modify, performance of any of the obligations of the Parties; and

(d)  waive compliance with or modify any conditions precedent herein contained;

provided that: (i) notwithstanding the foregoing, following the approval of the
AT Plastics Amalgamation Resolution, the number of Acetex Shares which the AT
Plastics Shareholders shall have the right to receive in the Amalgamation may
not be decreased without the further approval of the AT Plastics Shareholders
given in the same manner as required for the approval of the Amalgamation; and
(ii) any such change, waiver or modification does not invalidate any required
securityholder approval of the Amalgamation.

                                    ARTICLE 8
               AGREEMENT AS TO COMPENSATION AND OTHER ARRANGEMENTS

8.1      ACETEX COMPENSATION

(a)  If at any time after the execution of this Agreement:

     (i)     the Board of Directors of AT Plastics has withdrawn, qualified or
             changed any of its recommendations or determinations referred to in
             Section 2.9(a) in a manner adverse to Acetex or shall have resolved
             to do so prior to the Effective Date;

     (ii)    a bona fide Acquisition Proposal is publicly announced, proposed,
             offered or made to the AT Plastics Shareholders or to AT Plastics,
             and (A) such Acquisition Proposal has not expired or been withdrawn
             at the time of the AT Plastics Meeting, (B) the AT Plastics
             Shareholders do not approve the Amalgamation and (C) such
             Acquisition Proposal, an amended version thereof, a competing
             Acquisition Proposal or an Acquisition Proposal solicited in
             response to the foregoing, is consummated within 12 months of the
             termination of this Agreement; or

     (each of the above being an "Acetex Payment Event"), then AT Plastics shall
     pay to Acetex in immediately available funds the amount of US$5,000,000 to
     an account designated by Acetex , within three business days after any one
     of Sections 8.1(a)(i) or (ii) being satisfied or if requested by Acetex
     issue and deliver to Acetex (subject to all necessary regulatory approvals
     including the approval of the Toronto Stock Exchange) that number of AT
     Plastics Shares of its capital, as fully

     paid and non-assessable as is equal to US$5,000,000 divided by the closing
     price of the AT Plastics Shares on the business day immediately preceding
     the date of the Acetex Payment Event, within three business days thereof.

(b)  If this Agreement is terminated by Acetex in accordance with Section 9.1(b)
     in reliance on the condition contained in Section 6.3(a), then AT Plastics
     shall pay to Acetex in immediately available funds the amount of
     US$1,000,000 to an account designated by Acetex , within three business
     days or if requested by Acetex issue and deliver to Acetex (subject to all
     necessary regulatory approvals including the approval of the Toronto Stock
     Exchange) that number of AT Plastics Shares of its capital, as fully paid
     and non-assessable as is equal to US$1,000,000 divided by the closing price
     of the AT Plastics Shares on the business day immediately preceding the
     date of such termination, within three business days thereof.

(c)  Notwithstanding anything to the contrary contained herein, if a payment has
     been made under any of Sections 8.1(a)(i) or (ii) or 8.1(b) above, no
     further payment shall be required under Sections 8.1 (a)(i) or (ii) or
     8.1(b).

8.2      AT PLASTICS COMPENSATION

(a)  If at any time after the execution of this Agreement: Acetex does not waive
     the condition set out in Section 6.3(d) by September 30, 2003 and its
     failure to do so is not principally attributable to the failure of AT
     Plastics to co-operate and assist Acetex with respect to the matters
     provided therein and/or the failure of AT Plastics to perform the AT
     Plastics Support Obligations (an "AT Plastics Payment Event"), then Acetex
     shall pay to AT Plastics US$5,000,000 as liquidated damages in immediately
     available funds to an account designated by AT Plastics within three
     business days thereof or if requested by AT Plastics issue and deliver to
     AT Plastics (subject to all necessary regulatory approvals including the
     approval of the Toronto Stock Exchange) that number of Acetex Shares, as
     fully paid and non-assessable as is equal to US$5,000,000 divided by the
     closing price of the Acetex Shares on the business day immediately
     preceding the Acetex Payment Event, within three business days thereof

(b)  If this Agreement is terminated by AT Plastics in accordance with Section
     9.1(b) in reliance on the condition contained in Section 6.2(a), then
     Acetex shall pay to AT Plastics in immediately available funds the amount
     of US$1,000,000 to an account designated by AT Plastics, within three
     business days thereof issue or if requested by AT Plastics issue and
     deliver to AT Plastics (subject to all necessary regulatory approvals
     including the approval of the Toronto Stock Exchange) that number of Acetex
     Common Shares of its capital, as fully paid and non-assessable as is equal
     to US$1,000,000 divided by the closing price of the Acetex Shares on the
     business day immediately preceding the date of such termination, within
     three business days thereof.

(c)  Notwithstanding anything to the contrary contained herein, if a payment has
     been made under any of Sections 8.2(a)or 8.2(b) above, no further payment
     shall be required under Sections 8.2(a) or 8.2(b).

8.3      LIQUIDATED DAMAGES

         Each Party acknowledges that the amounts set out in this Article 8
represent liquidated damages which are a genuine pre-estimate of the damages,
including opportunity costs, which the Party entitled to such damages will
suffer or incur as a result of the event (subject to Section 6.4) giving rise to
such damages and resultant termination of this Agreement, and are not penalties.
Each Party irrevocably

waives any right it may have to raise as a defence that any such liquidated
damages are excessive or punitive.

8.4      LIMITED REMEDY

         For greater certainty, the Parties agree that the compensation or
damages to be received pursuant to this Article 8 is the sole remedy in
compensation or damages of the party receiving such payment; provided however
that nothing contained in this Article 8 or Section 9.1, including the payment
of an amount under this Article 8 shall relieve or have the effect of relieving
any Party in any way from liability for damages incurred or suffered by a Party
as a result of a breach of this Agreement by a Party acting in bad faith with a
clear intent and design to prevent the conditions precedent to this Agreement's
completion from being satisfied. Nothing herein shall preclude a Party from
seeking injunctive relief to restrain any breach or threatened breach of the
covenants or agreements set forth in this Agreement or the Confidentiality
Agreement or otherwise to obtain specific performance of any of such act,
covenants or agreements, without the necessity of posting bond or security in
connection therewith.

                                    ARTICLE 9
                                   TERMINATION

9.1      TERMINATION

         This Agreement may be terminated at any time prior to the Effective
Date:

(a)  by mutual written consent of Acetex and AT Plastics;

(b)  as provided in Sections 6.1, 6.2 and 6.3, subject to the right to cure
     pursuant to Section 6.4;

(c)  by Acetex upon the occurrence of an Acetex Payment Event as provided in
     Section 8.1;

(d)  by AT Plastics upon the occurrence of an AT Plastics Payment Event as
     provided in Section 8.2;

(e)  by Acetex upon the acceptance of an Acquisition Proposal pursuant to, and
     in accordance with, Sections 5.5 and 5.6 (and provided payment of the
     applicable amounts under Section 8.2(a) to, AT Plastics have been made);

(f)  by AT Plastics upon the acceptance of an Acquisition Proposal pursuant to,
     and in accordance with, Sections 5.5 and 5.6 (and provided payment of the
     applicable amounts under Section 8.1(a) to Acetex have been made); and

(g)  by either Acetex or AT Plastics if: at the AT Plastics Meeting the
     requisite vote of AT Plastics Shareholders is not obtained;

(h)  In the event of the termination of this Agreement in the circumstances set
     out in any of paragraphs (a) through (g) of this Section 9.1, this
     Agreement shall forthwith be terminated and neither Party shall have any
     liability or further obligation to the other Party hereunder, except with
     respect to the obligations set forth in Article 8 and Article 10 (other
     than Section 10.5) which shall survive such termination.

                                   ARTICLE 10
                                     GENERAL

10.1     EXPENSES

(a)  The Parties agree that, except in the event of the termination of this
     Agreement, all out-of-pocket third party transaction expenses of the
     Amalgamation, including legal fees, regulatory filing fees, all
     disbursements by advisors and printing and mailing costs, shall be paid by
     the Party incurring such expenses. If this Agreement is terminated, Acetex
     and AT Plastics agree to share equally the fees and filing fees in respect
     of the Competition Act.

(b)  Acetex and AT Plastics represent and warrant to each other that, except for
     Griffiths McBurney Partners and UBS Securities, LLC in the case of Acetex,
     and W.Y. Campbell & Company in the case of AT Plastics, no broker, finder
     or investment banker is entitled to any brokerage, finder's or other fee or
     commission, or to the reimbursement of any of its expenses, in connection
     with the Amalgamation. Each Party to this Agreement has provided to the
     other Party a correct and complete copy of all agreements relating to the
     arrangement between it and its financial advisors as are in existence at
     the date hereof and agrees not to amend the terms of any such agreements
     relating to the payment of fees and expenses or enter into an engagement
     letter with any strategic advisor without the prior written approval of the
     other Party of the fees and expenses to be incurred.

10.2     NOTICES

         Any notice, consent, waiver, direction or other communication required
or permitted to be given under this Agreement by a Party to any other Party
shall be in writing and may be given by delivering same or sending same by
facsimile transmission or by delivery addressed to the Party to which the notice
is to be given at its address for service herein. Any notice, consent, waiver,
direction or other communication aforesaid shall, if delivered, be deemed to
have been given and received on the date on which it was delivered to the
address provided herein (if a business day, if not, the next succeeding business
day) and if sent by facsimile transmission be deemed to have been given and
received at the time of receipt unless actually received after 4:00 p.m. at the
point of delivery in which case it shall be deemed to have been given and
received on the next business day.

The address for service of each of the parties hereto shall be as follows:

(a)  if to Acetex or 2028569 Ontario Limited:

     Acetex Corporation
     750 World Trade Centre
     Vancouver, British Columbia  V6C 3C1

     Attention: Brooke N. Wade
     Fax: (604) 680-9620

     with a copy to:

     Burnet, Duckworth & Palmer LLP
     1400, 350 - 7th Avenue S.W.
     Calgary, Alberta  T2P 3N9

     Attention:  David Ross
     Fax: (403) 260-0337

(b)  if to AT Plastics:

     134 Kennedy Road South
     Brampton, Ontario  L6W 3G5

     Attention : Gary Connaughty

     with a copy to:

     Aird & Berlis LLP
     #1800, 181 Bay Street
     Toronto, Ontario  M5J 2T9

     Attention:  Margaret Nelligan

10.3     TIME OF ESSENCE

Time shall be of the essence in this Agreement.

10.4     ENTIRE AGREEMENT

         This Agreement and the Confidentiality Agreement constitute the entire
agreement between the Parties and cancel and supersede all prior agreements and
understandings between the Parties with respect to the subject matter hereof. To
the extent that provisions of the Confidentiality Agreement conflict with
provisions of this Agreement, the provisions of this Agreement shall govern. The
Board of Directors of each of the Parties hereby consents under Section 11.1 of
the Confidentiality Agreement (for so long as this Agreement remains in effect
and has not been terminated) to the actions of the other taken to consummate the
Amalgamation and the transactions contemplated thereby or action taken to
propose amendments thereto under Section 5.6 of this Agreement. The Parties
hereby amend the Confidentiality Agreement such that the Confidentiality
Agreement shall terminate upon the Amalgamation becoming effective or at the end
of the 12th calendar month following the termination of this Agreement,
whichever is first to occur and the exclusivity provisions of the
Confidentiality Agreement contained in Article 3 thereof are hereby terminated.

10.5     FURTHER ASSURANCES

         Each Party hereto shall, from time to time, and at all times hereafter,
at the request of the other Party hereto, but without further consideration, do
all such further acts and execute and deliver all such further documents and
instruments as shall be reasonably required in order to fully perform and carry
out the terms and intent hereof.

10.6     GOVERNING LAW

         This Agreement shall be governed by, and be construed in accordance
with, the laws of the Province of Ontario and the laws of Canada applicable
therein. Each Party hereto hereby irrevocably attorns to the exclusive
jurisdiction of the Courts of the Province of Ontario in respect of all matters
arising under or in relation to this Agreement.

10.7     EXECUTION IN COUNTERPARTS

         This Agreement may be executed in identical counterparts, each of which
is and is hereby conclusively deemed to be an original and the counterparts
collectively are to be conclusively deemed to be one instrument.

10.8     WAIVER

         No waiver by any Party hereto shall be effective unless in writing and
any waiver shall affect only the matter, and the occurrence thereof,
specifically identified and shall not extend to any other matter or occurrence.

10.9     ENUREMENT AND ASSIGNMENT

         This Agreement shall enure to the benefit of and be binding upon the
parties hereto and their respective successors and permitted assigns. This
Agreement may not be assigned by any Party hereto without the prior written
consent of the other Party hereto.

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

ACETEX CORPORATION                           AT PLASTICS INC.

Per:  (signed) "Brooke N. Wade"              Per:  (signed) "Gary Connaughty"
      --------------------------------             -----------------------------
      Name:    Brooke N. Wade                      Name:    Gary  Connaughty
      Title:   Chairman & Chief                    Title:   President & Chief
               Executive Officer                            Executive Officer

Per:  (signed) "Ken E. Vidalin"
      --------------------------------
      Name:    Ken E. Vidalin
      Title:   President & Chief
               Operating Officer

2028569 ONTARIO LIMITED

Per:  (signed) "Brooke N. Wade"
      --------------------------------
      Name:    Brooke N. Wade
      Title:   Chairman & Chief
               Executive Officer

Per:  (signed) "Ken E. Vidalin"
      --------------------------------
      Name:    Ken E. Vidalin
      Title:   President & Chief
               Operating Officer

                                  SCHEDULE "A"

                            ARTICLES OF AMALGAMATION

[OBCA FORM]

1.   NAME OF CORPORATION.

         Acetex (Ontario) Inc.

2.   CORPORATE ACCESS NO.

3.

4.   THE CLASSES AND ANY MAXIMUM NUMBER OF SHARES THAT THE CORPORATION IS
     AUTHORIZED TO ISSUE.

         An unlimited number of common shares

5.   RESTRICTIONS IF ANY ON SHARE TRANSFERS.

         No restrictions.

6.   NUMBER (OR MINIMUM AND MAXIMUM NUMBER) OF DIRECTORS.

         Minimum of three (3), maximum of twelve (12).

7.   RESTRICTIONS IF ANY ON BUSINESS THE CORPORATION MAY CARRY ON.

         No restrictions.

8.   OTHER RULES OR PROVISIONS IF ANY.

         The directors of the Corporation are authorized to appoint from time to
time between annual meetings one or more additional directors of the Corporation
to serve until the next annual general meeting, but the number of additional
directors shall not at any time exceed one-third of the number of directors who
held office at the end of the most recently completed annual general meeting of
the Corporation.

9.   NAME OF AMALGAMATING CORPORATIONS.

         AT Plastics Inc
         Acetex (Ontario) Inc.

10.  CORPORATE ACCESS NO.

DATE                                SIGNATURE                    TITLE

                                   SCHEDULE B

                    REPRESENTATIONS AND WARRANTIES OF ACETEX

1.   ORGANIZATION.

         Each of Acetex and its Material Subsidiaries has been duly incorporated
or formed under the Laws of its jurisdiction of incorporation or other
organization, is validly subsisting and has full corporate or legal power and
authority to own its properties and conduct its businesses as presently owned
and conducted. All of the outstanding shares in the capital of and other
ownership interests of its Subsidiaries are validly issued, fully paid and
non-assessable and all such shares and other ownership interests owned directly
or indirectly by Acetex are (except as disclosed in writing to AT Plastics or
pursuant to restrictions on transfer contained in constating documents, rights
of first refusal and similar rights restricting transfer contained in
shareholder, partnership or joint venture agreements for or pursuant to existing
financing arrangements involving Subsidiaries which are not wholly owned): (i)
owned free and clear of all material liens, claims or encumbrances and (ii)
there are no outstanding options, rights, entitlements, understandings or
commitments (contingent or otherwise) regarding the right to acquire any such
shares of capital stock or other ownership interests in any of its Subsidiaries.

2.   CAPITALIZATION.

         The authorized capital of Acetex consists of an unlimited number of
Acetex Shares. As of the date hereof there are 25,491,864 Acetex Shares
outstanding and 2,869,188 Acetex Shares issuable under the Acetex Option Plan.
Except as described in the immediately preceding sentence or otherwise disclosed
in writing, there are no options, warrants, conversion privileges or other
rights, agreements, arrangements or commitments obligating Acetex or any
Subsidiary to issue or sell (other than to a wholly-owned Subsidiary of Acetex
or any of its Subsidiaries) any shares of Acetex or any of its Subsidiaries or
securities or obligations of any kind convertible into or exchangeable for any
shares of Acetex, any Subsidiary or any other person, nor (except for rights
under the Acetex Option Plans), is there outstanding any stock appreciation
rights, phantom equity or similar rights, agreements, arrangements or
commitments based upon the book value, income or any other attribute of Acetex
or any Subsidiary. There have been no Acetex Shares issued since 2000, other
than pursuant to the exercise of stock option entitlements. Since 2000, Acetex
has granted Acetex Options only in the ordinary course of business.

3.   AUTHORITY.

Acetex has the requisite corporate power and authority to enter into this
Agreement and to perform its obligations hereunder. The execution and delivery
of this Agreement by Acetex and the consummation by Acetex of the transactions
contemplated by this Agreement have been duly authorized by the Board of
Directors of Acetex and, subject to approval by the Acetex Shareholders, no
other corporate proceedings on the part of Acetex are necessary to authorize
this Agreement or the transactions contemplated hereby. This Agreement has been
duly executed and delivered by Acetex and constitutes a valid and binding
obligation of Acetex, enforceable against Acetex in accordance with its terms
subject to bankruptcy, insolvency, reorganization, fraudulent transfer,
moratorium and other applicable Laws relating to or affecting creditors' rights
generally, to general principles of equity and public policy. Except as
disclosed in writing to AT Plastics on or prior to the date hereof and subject
to obtaining all consents and approvals contemplated by this Agreement, the
execution and delivery by Acetex of this Agreement and performance by it of its
obligations hereunder and the completion of the Amalgamation and the
transactions contemplated thereby, will not:

(a)  result in a violation or breach of, require any consent to be obtained
     under or give rise to any termination rights under any provision of:

     (i)     its or any Material Subsidiary's certificate of incorporation,
             articles, by-laws or other charter documents, including any
             unanimous shareholder agreement or any other agreement or
             understanding with any person holding an ownership interest in any
             Material Subsidiary;

     (ii)    any law, regulation, order, judgment or decree; or

     (iii)   any contract, agreement, license, franchise or permit to which
             Acetex or any Material Subsidiary is bound or is subject or is the
             beneficiary;

(b)  give rise to any right of termination or acceleration of indebtedness, or
     cause any third party indebtedness to come due before its stated maturity
     or cause any available credit to cease to be available; or

(c)  result in the imposition of any Encumbrance, charge or lien upon any of its
     assets or the assets of any Material Subsidiary, or restrict, hinder,
     impair or limit the ability of Acetex or any Material Subsidiary to carry
     on the business of Acetex or any Material Subsidiary as and where it is now
     being carried on or as and where it may be carried on in the future;

which would individually or in the aggregate have a material adverse effect on
Acetex or materially impair the ability of Acetex to perform its obligations
hereunder or prevent or materially delay the consummation of any of the
transactions contemplated hereby.

4.   ABSENCE OF CHANGES.

         Since December 31, 2002, and except as has been previously disclosed in
writing to AT Plastics or has been publicly disclosed prior to the date hereof
in any document filed with the Alberta Securities Commission (the "Securities
Authorities") (i) Acetex has conducted its business only in the ordinary and
regular course of business consistent with past practice, (ii) other than in the
ordinary and regular course of business consistent with past practice, no
liabilities or obligations of any nature (whether absolute, accrued, contingent
or otherwise) which would individually or in the aggregate be material to Acetex
or which materially and adversely affects the ability of Acetex to consummate
the transactions contemplated hereby have been incurred, (iii) there has not
been any material change, as defined under the Securities Act (Alberta), in the
affairs of Acetex or in the financial condition, results of operations or
business of Acetex and (iv) as of the execution hereof, there are no material
change reports filed with the Securities Authorities which remain confidential.

5.   EMPLOYMENT AGREEMENTS.

(a)  Other than as disclosed in writing to AT Plastics on or prior to the date
     hereof, or except as set forth in the proxy circular prepared in connection
     with the Annual General Meeting of Acetex held on May 24, 2003, neither
     Acetex nor any Material Subsidiary is a party to any written or oral
     policy, agreement, obligation or understanding providing for severance or
     termination payments to, or any employment agreement with, any senior
     executive.

(b)  Other than as disclosed in writing to AT Plastics on or prior to the date
     hereof, neither Acetex nor any Material Subsidiary is a party to any
     collective bargaining agreement nor

     subject to any application for certification or threatened or apparent
     union-organizing campaigns for employees not covered under a collective
     bargaining agreement nor are there any current, pending or threatened
     strikes or lockouts at either Acetex or any Material Subsidiary that would
     individually or in the aggregate have a material adverse effect on Acetex.

(c)  Other than as disclosed in writing to AT Plastics on or prior to the date
     hereof, neither Acetex nor any Material Subsidiary is subject to any claim
     for wrongful dismissal, constructive dismissal or any other tort claim,
     actual or threatened, or any litigation, actual or threatened, relating to
     its employees or independent contractors (including any termination of such
     persons) other than those claims or such litigation as would individually
     or in the aggregate not have a material adverse effect on Acetex.

(d)  Other than as disclosed in writing to AT Plastics on or prior to the date
     hereof or as are not material, Acetex and all Material Subsidiaries have
     operated in accordance with all applicable Laws with respect to employment
     and labour, including, but not limited to, employment and labour standards,
     occupational health and safety, employment equity, pay equity, workers'
     compensation, human rights and labour relations and there are no current,
     pending or threatened proceedings before any board or tribunal with respect
     to any of the areas listed herein other than where the failure to so
     operate or such proceedings which, individually or in the aggregate would
     not have a material adverse effect on Acetex.

6.   DISCLOSURE.

         Acetex has publicly disclosed in documents filed with the Securities
Authorities or disclosed to AT Plastics in writing, on or prior to the date
hereof, any information regarding any event, circumstance or action taken or
failed to be taken which could, individually or in the aggregate, reasonably be
expected to have a material adverse effect on Acetex or materially and adversely
affects the ability of Acetex to consummate the transactions contemplated
hereby.

7.   FINANCIAL STATEMENTS.

         Except as disclosed in writing to AT Plastics on or prior to the date
hereto, the audited consolidated balance sheet and related consolidated
statements of income, retained income and cash flows of Acetex, for the fiscal
years ended December 31, 2002 and 2001 and the unaudited interim consolidated
financial statements of Acetex for the periods ended March 31, 2003, were
prepared in accordance with generally accepted accounting principles in Canada
consistently applied (except (i) as otherwise indicated in such financial
statements and the notes thereto or, in the case of audited statements, in the
related report of Acetex's independent accountants or (ii) in the case of
unaudited interim financial statements, to the extent they may not include
footnotes or may be condensed or summary statements), and fairly present the
consolidated financial condition of Acetex at the respective dates indicated and
the results of operations of Acetex (on a consolidated basis) for the periods
indicated therein (subject, in the case of any unaudited interim financial
statements, to normal year-end audit adjustments).

8.   BOOKS AND RECORDS.

         The corporate records and minute books of Acetex and the Material
Subsidiaries have been maintained substantially in accordance with all
applicable Laws and are complete and accurate in all material respects.

9.   LITIGATION, ETC.

         Except as set forth or specifically reflected in any document filed
with the Securities Authorities, or as disclosed in writing to AT Plastics on or
prior to the date hereof, there is no claim, action, proceeding or investigation
pending or, to the knowledge of Acetex, threatened against or relating to Acetex
or any Material Subsidiary or affecting any of their properties or assets before
any court or governmental or regulatory authority or body that, if adversely
determined, is likely to have a material adverse effect on Acetex or prevent or
materially delay consummation of the transactions contemplated by this Agreement
or the Amalgamation, nor is Acetex aware of any basis for any such claim,
action, proceeding or investigation. Neither Acetex nor any Material Subsidiary
is subject to any outstanding order, writ, injunction or decree that has had or
is reasonably likely to have a material adverse effect on Acetex or prevent or
materially delay consummation of the transactions contemplated by this Agreement
or the Amalgamation.

10.  ENVIRONMENTAL.

         All operations of Acetex and its Material Subsidiaries, have been and
are now, in compliance with all Environmental Laws, except where the failure to
be in compliance would not, individually or in the aggregate, have a material
adverse effect on Acetex. Except as has been disclosed in writing to AT Plastics
on or prior to the date hereof, neither Acetex nor any Material Subsidiary is
aware of, or is subject to:

(a)  any proceeding, application, order or directive which relates to
     environmental health or safety matters, and which may require any material
     work, repairs, construction, or expenditures; or

(b)  any demand or notice with respect to the breach of any Environmental Laws
     applicable to Acetex or any Subsidiary, including, without limitation, any
     regulations respecting the use, storage, treatment, transportation, or
     disposition of Hazardous Substances;

which individually or in the aggregate would have a material adverse effect on
Acetex.

11.  INSURANCE.

         Policies of insurance in force as of the date hereof naming Acetex as
an insured adequately cover all risks reasonably and prudently foreseeable in
the operation and conduct of the business of Acetex and the Material
Subsidiaries for which, having regard to the nature of such risk and the
relative cost of obtaining insurance, it is in the opinion of Acetex reasonable
to seek such insurance rather than provide for self insurance. All such policies
of insurance shall remain in force and effect (subject to taking into account
insurance market conditions and offerings and industry practices) and shall not
be cancelled or otherwise terminated as a result of the transactions
contemplated hereby or by the Amalgamation other than such cancellations as
would not individually or in the aggregate have a material adverse effect on
Acetex.

12.      TAX MATTERS.

(a)  RETURNS FILED AND TAXES PAID. All Returns required to be filed by or on
     behalf of Acetex or any Material Subsidiaries have been duly filed on a
     timely basis and such Returns are true, complete and correct in all
     material respects. Except as disclosed in writing by Acetex to AT Plastics
     on or prior to the date hereof, all Taxes shown to be payable on the
     Returns or on subsequent assessments with respect thereto have been paid

     in full on a timely basis, and no other material amount of Taxes are
     payable by Acetex or any Material Subsidiaries with respect to items or
     periods covered by such Returns.

(b)  TAX RESERVES. Acetex has paid or provided adequate accruals in its
     consolidated financial statements for the year ended December 31, 2002 for
     Taxes assessed, including income taxes and related deferred taxes, in
     conformity with generally accepted accounting principles applicable in
     Canada.

(c)  TAX DEFICIENCIES; AUDITS. Except as has been disclosed in writing to AT
     Plastics, no deficiencies exist or have been asserted with respect to Taxes
     of Acetex or any Material Subsidiary, neither Acetex nor any Material
     Subsidiary is a Party to any action or proceeding for assessment or
     collection of Taxes, nor has such event been asserted or threatened against
     Acetex or any Material Subsidiary or any of their respective assets, except
     where such deficiencies, actions or proceedings are not material to Acetex
     or the Amalgamation.

13.  PENSION AND EMPLOYEE BENEFITS.

(a)  Other than as disclosed in writing to AT Plastics on or prior to the date
     hereof, Acetex has complied, in all material respects, with all the terms
     of and all applicable Laws in respect of the pension and other employee
     compensation and benefit obligations of Acetex and its Material
     Subsidiaries, including the terms of any collective agreements, funding and
     investment contracts or obligations applicable thereto, arising under or
     relating to each of the pension or retirement income plans or other
     employee compensation or benefit plans, agreements, policies, programs,
     arrangements or practices, whether written or oral, which are maintained by
     or binding upon Acetex or any of its Material Subsidiaries (collectively
     referred to as the "Acetex Plans") and all Acetex Plans are fully funded
     and in good standing with such regulatory authorities as may be applicable.

(b)  No step has been taken, no event has occurred and no condition or
     circumstance exists that has resulted in or could reasonably be expected to
     result in any Acetex Plan being ordered or required to be terminated or
     wound up in whole or in part or having its registration under applicable
     legislation refused or revoked, or being placed under the administration of
     any trustee or receiver or regulatory authority or being required to pay
     any material taxes, fees, penalties or levies under applicable Laws. There
     are no actions, suits, claims (other than routine claims for payment of
     benefits in the ordinary course), trials, demands, investigations,
     arbitrations or other proceedings which are pending or threatened in
     respect of any of the Acetex Plans or their assets which individually or in
     the aggregate would have a material adverse effect on Acetex:

(c)  Other than as disclosed in writing to AT Plastics on or prior to the date
     hereof, no event has occurred or condition exists with respect to any of
     the Acetex Plans or relating to any employee of Acetex or a Material
     Subsidiary which, individually or in the aggregate, is reasonably likely to
     result in a material liability to Acetex.

14.  PROPERTY.

         Acetex and its Material Subsidiaries have good and sufficient title to
the real property interests including, without limitation, fee simple estate of
and in real property, leases, easements, rights of way, permits or licences from
landowners or authorities permitting the use of land by Acetex and its

Material Subsidiaries, necessary to permit the operation of its businesses as
presently owned and conducted except as disclosed in writing to the other Party
hereto on or prior to the date hereof and except for such failures of title that
would, individually or in the aggregate, not have a material adverse effect on
Acetex. All trade marks, trade names, patents and copyrights, both domestic and
foreign, used in or required for the proper carrying on of the business of
Acetex and its Material Subsidiaries are validly and beneficially owned by
Acetex or the relevant Material Subsidiary with the sole and exclusive right to
use the same and are in good standing and duly registered in all appropriate
offices to preserve the right thereof and thereto and the conduct of the Acetex
and its Material Subsidiaries does not infringe upon the trade marks, trade
names, patents or copyrights, domestic or foreign, of any other person;

15.  REPORTS.

         Acetex has filed with the Securities Authorities, true and complete
copies of all forms, reports, schedules, statements and other documents required
to be filed by it since January 1, 1997 except for such forms, reports,
schedules, statements or other documents which were not material (such forms,
reports, schedules, statements and other documents, including any financial
statements or other documents, including any financial statements or schedules
included therein, are referred to as the "Acetex Documents"). The Acetex
Documents, at the time filed, (a) did not contain any misrepresentation and (b)
complied in all material respects with the requirements of applicable securities
legislation.

16.  COMPLIANCE WITH LAWS.

         Since December 31, 2002, and except as has been publicly disclosed
prior to the date hereof in any document filed with the Securities Authorities,
Acetex and its Material Subsidiaries and its Material Subsidiaries have complied
with and are not in violation of any applicable Laws other than non-compliance
or violations which would not, individually or in the aggregate, have a material
adverse effect on Acetex or which would not materially impair the ability of
Acetex to perform its obligations hereunder or prevent or materially delay the
consummation of any of the transactions contemplated hereby.

17.  LICENSES, ETC.

         Except as disclosed in writing to AT Plastics on or prior to the date
hereof, Acetex and each of its Material Subsidiaries owns, possesses, or has
obtained and is in compliance with, all licenses, permits (including permits
required under Environmental Laws), certificates, orders, grants and other
authorizations of or from any Governmental Entity necessary to conduct its
businesses as now conducted or as proposed to be conducted, the failure to own,
possess, obtain or be in compliance with which would not, individually or in the
aggregate, have a material adverse effect on Acetex or would not materially
impair the ability of Acetex to perform its obligations hereunder or prevent or
materially delay the consummation of any of the transactions contemplated
hereby.

18.  CERTAIN CONTRACTS.

         Except as disclosed in writing to AT Plastics on or prior to the date
hereof, neither Acetex nor any of its Material Subsidiaries is a party to or
bound by any non-competition agreement or any other agreement or obligation
which purports to limit the manner or the localities in which all or any
material portion of the business of Acetex or its Material Subsidiaries is or
would be conducted other than such contracts which individually or in the
aggregate would not have material portion of the business of Acetex or its
Material Subsidiaries is or would be conducted other than such contracts which
individually or in the aggregate would not have a material adverse effect, on
Acetex or would not materially impair the ability of Acetex to perform its
obligations hereunder or prevent or materially delay the consummation of any of
the transactions contemplated hereby.

19.  REGULATORY MATTERS

         The aggregate value of the assets of Acetex and its Subsidiaries in
Canada does not exceed (Cdn.) $9 million in the aggregate, determined as of
December 31, 2002 and in such manner as is prescribed for purposes of the
Competition Act (Canada); and the gross revenues from sales in, from or into
Canada of Acetex and its Subsidiaries, determined for the year ended December
31, 2002 and in such manner as is prescribed for purposes of the Competition Act
(Canada), do not exceed (Cdn.) $150 million in the aggregate Acetex is a
"Canadian" as that term is defined pursuant to the provisions of the Investment
Canada Act.

20.  ACETEX SUB

         Acetex Sub has no liabilities or obligations other than those arising
pursuant to the Agreement and has no assets save for cash of $10.

                                   SCHEDULE C

                  REPRESENTATIONS AND WARRANTIES OF AT PLASTICS

21.  ORGANIZATION.

         Each of AT Plastics and its Material Subsidiaries has been duly
incorporated or formed under the Laws of its jurisdiction of incorporation or
other organization, is validly subsisting and has full corporate or legal power
and authority to own its properties and conduct its businesses as presently
owned and conducted. All of the outstanding shares in the capital of and other
ownership interests of its Subsidiaries are validly issued, fully paid and
non-assessable and all such shares and other ownership interests owned directly
or indirectly by AT Plastics are (except as disclosed in writing to Acetex or
pursuant to restrictions on transfer contained in constating documents, rights
of first refusal and similar rights restricting transfer contained in
shareholder, partnership or joint venture agreements for or pursuant to existing
financing arrangements involving Subsidiaries which are not wholly owned): (i)
owned free and clear of all material liens, claims or encumbrances and (ii)
there are no outstanding options, rights, entitlements, understandings or
commitments (contingent or otherwise) regarding the right to acquire any such
shares of capital stock or other ownership interests in any of its Subsidiaries.

22.  CAPITALIZATION.

         The authorized capital of AT Plastics consists of: (a) an unlimited
number of AT Plastics Shares and two classes of preferred shares. As of the date
hereof there are 49,935,934 AT Plastics Shares outstanding and no preferred
shares outstanding and 4,013,497 AT Plastics Shares were issuable pursuant to
outstanding AT Plastics Options. Except as described in the immediately
preceding sentence or as disclosed in writing to Acetex and except for: (a)the
AT Plastics Warrants; the compensation arrangement with Arnold Cader; and (c)
the compensation arrangement with certain directors of AT Plastics, there are no
options, warrants, conversion privileges or other rights; agreements,
arrangements or commitments obligating AT Plastics or any Subsidiary to issue or
sell (other than to a wholly-owned Subsidiary of AT Plastics or any of its
Subsidiaries) any shares of AT Plastics or any of its Subsidiaries or securities
or obligations of any kind convertible into or exchangeable for any shares of AT
Plastics, any Subsidiary or any other person, nor is there outstanding any stock
appreciation rights, phantom equity or similar rights, agreements, arrangements
or commitments based upon the book value, income or any other attribute of AT
Plastics or the Subsidiary. Except as disclosed in writing to Acetex, there have
been no AT Plastics Shares issued since December 31, 2002 other than pursuant to
the exercise of stock option entitlements.

23.  AUTHORITY.

         AT Plastics has the requisite corporate power and authority to enter
into this Agreement and to perform its obligations hereunder. The execution and
delivery of this Agreement by AT Plastics and the consummation by AT Plastics of
the transactions contemplated by this Agreement have been duly authorized by the
Board of Directors of AT Plastics and, subject to approval by the AT Plastics
Shareholders, no other corporate proceedings on the part of AT Plastics are
necessary to authorize this Agreement or the transactions contemplated hereby.
This Agreement has been duly executed and delivered by AT Plastics and
constitutes a valid and binding obligation of AT Plastics, enforceable against
AT Plastics in accordance with its terms subject to bankruptcy, insolvency,
reorganization, fraudulent transfer, moratorium and other applicable Laws
relating to or affecting creditors' rights generally, to general principles of
equity and public policy. Except as disclosed in writing to Acetex on or prior
to the date hereof and subject to obtaining all consents and approvals
contemplated by this Agreement, the

execution and delivery by AT Plastics of this Agreement and performance by it of
its obligations hereunder and the completion of the Amalgamation and the
transactions contemplated thereby, will not:

(a)  result in a violation or breach of, require any consent to be obtained
     under or give rise to any termination rights under any provision of:

     (i)     its or any Material Subsidiary's certificate of incorporation,
             articles, by-laws or other charter documents, including any
             unanimous shareholder agreement or any other agreement or
             understanding with any Person holding an ownership interest in any
             Material Subsidiary;

     (ii)    any law, regulation, order, judgment or decree; or

     (iii)   any contract, agreement, license, franchise or permit to which AT
             Plastics or any Material Subsidiary is bound or is subject or is
             the beneficiary;

(b)  give rise to any right of termination or acceleration of indebtedness, or
     cause any third party indebtedness to come due before its stated maturity
     or cause any available credit to cease to be available; or

(c)  result in the imposition of any Encumbrance, charge or lien upon any of its
     assets or the assets of any Material Subsidiary, or restrict, hinder,
     impair or limit the ability of AT Plastics or any Material Subsidiary to
     carry on the business of AT Plastics or any Material Subsidiary as and
     where it is now being carried on or as and where it may be carried on in
     the future;

which would individually or in the aggregate have a material adverse effect on
AT Plastics or materially impair the ability of AT Plastics to perform its
obligations hereunder or materially delay the consummation of the transactions
contemplated hereby.

24.  ABSENCE OF CHANGES.

         Since December 31, 2002, and except as has been previously disclosed in
writing to Acetex or has been publicly disclosed prior to the date hereof in any
document filed with the Alberta Securities Commission (the "Securities
Authorities") (i) AT Plastics has conducted its business only in the ordinary
and regular course of business consistent with past practice, (ii) other than in
the ordinary and regular course of business consistent with past practice, no
liabilities or obligations of any nature (whether absolute, accrued, contingent
or otherwise) which would individually or in the aggregate be material to AT
Plastics or which materially and adversely affects the ability of AT Plastics to
consummate the transactions contemplated hereby have been incurred, (iii) there
has not been any material change, as defined under the Securities Act (Alberta),
in the affairs of AT Plastics or in the financial condition, results of
operations or business of AT Plastics and (iv) as of the execution hereof, there
are no material change reports filed with the Securities Authorities which
remain confidential.

25.  EMPLOYMENT AGREEMENTS.

(a)  Except as disclosed in writing to Acetex on or prior to the date hereof, or
     except as set forth in the proxy circular prepared in connection with the
     Annual General Meeting of AT Plastics held on May 22, 2003o , neither AT
     Plastics nor any Material Subsidiary is a party to any written or oral
     policy, agreement, obligation or understanding providing for severance or
     termination payments to, or any employment agreement with, any senior
     executive.

(b)  Other than as disclosed in writing to Acetex on or prior to the date
     hereof, neither AT Plastics nor any Material Subsidiary is a party to any
     collective bargaining agreement nor subject to any application for
     certification or threatened or apparent union-organizing campaigns for
     employees not covered under a collective bargaining agreement nor are there
     any current, pending or threatened strikes or lockouts at either AT
     Plastics or any Material Subsidiary that would individually or in the
     aggregate have a material adverse effect on AT Plastics.

(c)  Other than as disclosed in writing to Acetex on or prior to the date
     hereof, neither AT Plastics nor any Material Subsidiary is subject to any
     claim for wrongful dismissal, constructive dismissal or any other tort
     claim, actual or threatened, or any litigation, actual or threatened,
     relating to its employees or independent contractors (including any
     termination of such persons) other than those claims or such litigation as
     would individually or in the aggregate not have a material adverse effect
     on AT Plastics.

(d)  Other than as disclosed in writing to Acetex on or prior to the date hereof
     or as are not material, AT Plastics and all Material Subsidiaries have
     operated in accordance with all applicable Laws with respect to employment
     and labour, including, but not limited to, employment and labour standards,
     occupational health and safety, employment equity, pay equity, workers'
     compensation, human rights and labour relations and there are no current,
     pending or threatened proceedings before any board or tribunal with respect
     to any of the areas listed herein other than where the failure to so
     operate or such proceedings which, individually or in the aggregate would
     not have a material adverse effect on AT Plastics.

26.  DISCLOSURE.

         AT Plastics has publicly disclosed in documents filed with the
Securities Authorities or disclosed to Acetex in writing, on or prior to the
date hereof, any information regarding any event, circumstance or action taken
or failed to be taken which could, individually or in the aggregate, reasonably
be expected to have a material adverse effect on AT Plastics or materially and
adversely affects the ability of AT Plastics to consummate the transactions
contemplated hereby.

27.  FINANCIAL STATEMENTS.

         The audited consolidated financial statements of AT Plastics for the
fiscal year ended December 31, 2002 and the unaudited interim consolidated
financial statements of AT Plastics for the period ended March 31, 2003 were
prepared in accordance with generally accepted accounting principles in Canada
consistently applied (except (i) as otherwise indicated in such financial
statements and the notes thereto or, in the case of audited statements, in the
related report of AT Plastics's independent accountants or (ii) in the case of
unaudited interim financial statements, to the extent they may not include
footnotes or may be condensed or summary statements), and fairly present the
consolidated financial condition of AT Plastics at the respective dates
indicated and the results of operations of AT Plastics (on a consolidated basis)
for the periods indicated therein (subject, in the case of any unaudited interim
financial statements, to normal year-end audit adjustments).

28.  BOOKS AND RECORDS.

         The corporate records and minute books of AT Plastics and the Material
Subsidiaries have been maintained substantially in accordance with all
applicable Laws and are complete and accurate in all material respects.

29.  LITIGATION, ETC.

         Except as set forth or specifically reflected in any document filed
with the Securities Authorities, or as disclosed in writing to Acetex on or
prior to the date hereof, there is no claim, action, proceeding or investigation
pending or, to the knowledge of AT Plastics, threatened against or relating to
AT Plastics or any Material Subsidiary or affecting any of their properties or
assets before any court or governmental or regulatory authority or body that, if
adversely determined, is likely to have a material adverse effect on AT
Plastics, or prevent or materially delay consummation of the transactions
contemplated by this Agreement or the Amalgamation, nor is AT Plastics aware of
any basis for any such claim, action, proceeding or investigation. Neither AT
Plastics nor any Material Subsidiary is subject to any outstanding order, writ,
injunction or decree that has had or is reasonably likely to have a material
adverse effect on AT Plastics or prevent or materially delay consummation of the
transactions contemplated by this Agreement or the Amalgamation.

30.  ENVIRONMENTAL.

         All operations of AT Plastics and its Material Subsidiaries, have been
and are now, in compliance with all Environmental Laws, except where the failure
to be in compliance would, not, individually or in the aggregate, have a
material adverse effect on AT Plastics. Except as has been disclosed in, writing
to Acetex on or prior to the date hereof, neither AT Plastics nor any Material
Subsidiary is aware of, or is subject to:

(a)  any proceeding, application, order or directive which relates to
     environmental health or safety matters, and which may require any material
     work, repairs, construction, or expenditures; or

(b)  any demand or notice with respect to the breach of any Environmental Laws
     applicable to AT Plastics or any Subsidiary, including, without limitation,
     any regulations respecting the use, storage, treatment, transportation, or
     disposition of Hazardous Substances;

which individually or in the aggregate would have a material adverse effect on
AT Plastics.

31.  INSURANCE.

         Policies of insurance in force as of the date hereof naming AT Plastics
as an insured adequately cover all risks reasonably and prudently foreseeable in
the operation and conduct of the business of AT Plastics and the Material
Subsidiaries for which, having regard to the nature of such risk and the
relative costs of obtaining insurance, it is in the opinion of AT Plastics
reasonable to seek such insurance rather than provide for self insurance. All
such policies of insurance shall remain in force and effect (subject to taking
into account insurance market conditions and offerings and industry practices)
and shall not be cancelled or otherwise terminated as a result of the
transactions contemplated hereby or by the Amalgamation other than such
cancellations as would not individually or in the aggregate have a material
adverse effect on AT Plastics.

32.  TAX MATTERS.

(a)  RETURNS FILED AND TAXES PAID. All Returns required to be filed by or on
     behalf of AT Plastics or any Material Subsidiaries have been duly filed on
     a timely basis and such Returns are true, complete and correct in all
     material respects. Except as disclosed in writing by AT Plastics to Acetex
     on or prior to the date hereof, all Taxes shown to be payable on the
     Returns or on subsequent assessments with respect thereto have been paid

     in full on a timely basis, and no other material amount of Taxes are
     payable by AT Plastics or any Material Subsidiaries with respect to items
     or periods covered by such Returns.

(b)  TAX RESERVES. AT Plastics has paid or provided adequate accruals in its
     consolidated financial statements for the year ended December 31, 2002 for
     Taxes assessed, including income taxes and related deferred taxes, in
     conformity with generally accepted accounting principles applicable in
     Canada.

(c)  TAX DEFICIENCIES; AUDITS. Except as has been disclosed in writing to
     Acetex, no deficiencies exist or have been asserted with respect to Taxes
     of AT Plastics or any Material Subsidiary, neither AT Plastics nor any
     Material Subsidiary is a Party to any action or proceeding for assessment
     or collection of Taxes, nor has such event been asserted or threatened
     against AT Plastics or any Material Subsidiary or any of their respective
     assets, except where such deficiencies, actions or proceedings are not
     material to AT Plastics or the Amalgamation.

33.  PENSION AND EMPLOYEE BENEFITS.

(a)  Other than as disclosed in writing to Acetex on or prior to the date
     hereof, AT Plastics has complied, in all material respects, with all the
     terms of and all applicable Laws in respect of the pension and other
     employee compensation and benefit obligations of AT Plastics and its
     Material Subsidiaries, including the terms of any collective agreements,
     funding and investment contracts or obligations applicable thereto, arising
     under or relating to each of the pension or retirement income plans or
     other employee compensation or benefit plans, agreements, policies,
     programs, arrangements or practices, whether written or oral, which are
     maintained by or binding upon AT Plastics or any of its Material
     Subsidiaries

     (collectively referred to as the "AT Plastics Plans") and all AT Plastics
     Plans are fully funded and in good standing with such regulatory
     authorities as may be applicable.

(b)  No step has been taken, no event has occurred and no condition or
     circumstance exists that has resulted in or could reasonably be expected to
     result in any AT Plastics Plan being ordered or required to be terminated
     or wound up in whole or in part or having its registration under applicable
     legislation refused or revoked, or being placed under the administration of
     any trustee or receiver or regulatory authority or being required to pay
     any material taxes, fees, penalties or levies under applicable Laws. There
     are no actions, suits, claims (other than routine claims for payment of
     benefits in the ordinary course), trials, demands, investigations,
     arbitrations or other proceedings which are pending or threatened in
     respect of any of the AT Plastics Plans or their assets which individually
     or in the aggregate would have a material adverse effect on AT Plastics.

(c)  Other than as disclosed in writing to Acetex on or prior to the date
     hereof, no event has occurred or condition exists with respect to the AT
     Plastics Plans or relating to any employee of AT Plastics or a Material
     Subsidiary which, individually or in the aggregate, is reasonably likely to
     result in a material liability to AT Plastics.

34.  PROPERTY.

         AT Plastics and its Material Subsidiaries have good and sufficient
title to the real property interests including, without limitation, fee simple
estate of and in real property, leases, easements, rights of way, permits or
licences from landowners or authorities permitting the use of land by AT
Plastics and its Material Subsidiaries, necessary to permit the operation of its
businesses as presently owned and conducted except as disclosed in writing to
the other Party hereto on or prior to the date hereof and except for such
failures of title that would, individually or in the aggregate, not have a
material adverse effect on AT Plastics. All trade marks, trade names, patents
and copyrights, both domestic and foreign, used in or required for the proper
carrying on of the business of AT Plastics and its Material Subsidiaries are
validly and beneficially owned by AT Plastics or the relevant Material
Subsidiary with the sole and exclusive right to use the same and are in good
standing and duly registered in all appropriate offices to preserve the right
thereof and thereto and the conduct of the AT Plastics and its Material
Subsidiaries does not infringe upon the trade marks, trade names, patents or
copyrights, domestic or foreign, of any other person.

35.  REPORTS.

         AT Plastics has filed with the Securities Authorities, true and
complete copies of all forms, reports, schedules, statements and other documents
required to be filed by it since January 1, 1999 except for such forms, reports,
schedules, statements or other documents which were not material (such forms,
reports, schedules, statements and other documents, including any financial
statements or other documents, including any financial statements or schedules
included therein, are referred to as the "AT Plastics Documents"). The AT
Plastics Documents, at the time filed, (a) did not contain any misrepresentation
not subsequently corrected and (b) complied in all material respects with the
requirements of applicable securities legislation.

36.  COMPLIANCE WITH LAWS.

         Since December 31, 2002, and except as has been publicly disclosed
prior to the date hereof in any document filed with the Securities Authorities,
AT Plastics and its Material Subsidiaries have complied with and are not in
violation of any applicable Laws other than non-compliance or violations which
would not individually or in the aggregate have a material adverse effect on AT
Plastics or which would not materially impair the ability of AT Plastics to
perform its obligations hereunder or prevent or materially delay the
consummation of any of the transactions contemplated hereby.

37.  LICENSES, ETC.

         Except as disclosed in writing to Acetex on or prior to the date
hereof, AT Plastics and each of its Material Subsidiaries owns, possesses, or
has obtained and is in compliance with, all licenses, permits (including permits
required under Environmental Laws), certificates, orders, grants and other
authorizations of or from any Governmental Entity necessary to conduct its
businesses as now conducted or as proposed to be conducted, the failure to own,
possess, obtain or be in compliance with which would not individually or in the
aggregate have a material adverse effect on AT Plastics or would not materially
impair the ability of AT Plastics to perform its obligations hereunder or
prevent or materially delay the consummation of any of the transactions
contemplated hereby.

38.  CERTAIN CONTRACTS.

         Except as disclosed in writing to Acetex on or prior to the date
hereof, neither AT Plastics nor any of its Material Subsidiaries is a party to
or bound by any non-competition agreement or

any other agreement or obligation which purports to limit the manner or the
localities in which all or any material portion of the business of AT Plastics
or its Material Subsidiaries is or would be conducted other than such contracts
which individually or in the aggregate would not have a material adverse effect
on AT Plastics or would not materially impair the ability of AT Plastics to
perform its obligations hereunder or prevent or materially delay the
consummation of any of the transactions contemplated hereby.

                                   SCHEDULE D

                             GOVERNANCE ARRANGEMENTS

39.  TRANSITIONAL

         Between the date hereof and the Effective Date, the Chief Executive
Officers of each of Acetex and AT Plastics shall agree on an organizational
structure to be implemented as soon as practicable after the Effective Date and
shall agree on the placement of individuals in respect of significant management
positions.

         It is the intention of Acetex and AT Plastics that there be a
reasonable sharing of employment positions for the combined business operations
after the Effective Date; it being understood that determinations in respect of
such positions shall be made in a manner consistent with the efficient operation
of the combined business operations.

40.  OPTIONS

         AT Plastics and Acetex anticipate that, following the completion of the
Amalgamation; the Board of Directors of Acetex will conduct an assessment of
Acetex's outstanding options. This may result in additional options being
granted or in the surrender of options in conjunction with the grant of new
options, all in accordance with the terms of the Acetex Option Plan and subject
to any required stock exchange and shareholder approvals. All determinations
with respect of the foregoing matters described in this paragraph shall be at
the discretion of the Board of Directors of Acetex.

                                   SCHEDULE E

ACETEX SUBSTITUTE WARRANTS

(attached)

                                   SCHEDULE F

AT PLASTICS SUPPORT OBLIGATIONS

AT Plastics shall on or before July 10, 2003 prepare and deliver financial
statements in U.S. dollars (prepared as a translation of convenience):

(b)  Audited consolidated balance sheets at December 31, 2001 and December 31,
     2002

(c)  Audited consolidated statements of income, retained earnings and cash flows
     for the twelve month periods ending December 31, 2000, December 31, 2001
     and December 31, 2002,

(d)  Unaudited consolidated balance sheets at June 30, 2003 subject to auditors
     review sufficient for a comfort letter;

(e)  Unaudited consolidated statements of income, retained earnings and cash
     flows for the six month periods ending June 30, 2002 and June 30, 2003
     subject to auditor's review sufficient for a comfort letter;

(f)  All the above statements reconciled to U.S. generally accepted accounting
     principles as required for Form 20F, item 17 status.

(g)  Actuarial reports with respect to AT Plastics pension plans for funding
     purposes as at June 30, 2003.

AT Plastics shall provide access to its facilities, employees, executives and
consultants as may be reasonably requested by Acetex to allow Acetex to complete
its financing arrangements as contemplated by section 6.3(d).

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