Document:

Exhibit 4.1

 

 

INDENTURE

 

Dated as of March 17, 2010

 

Among

 

HUNTSMAN INTERNATIONAL LLC, as Issuer,

 

each of the Guarantors named herein

 

and

 

Wells Fargo Bank, National Association, as
Trustee

 

 

$350,000,000

 

85/8% Senior Subordinated Notes due 2020

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  
	
   

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.01

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.02

  	
   

  	
  Incorporation by Reference of TIA

  	
   

  	
  29

  
	
  Section 1.03

  	
   

  	
  Rules of Construction

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  II

  
	
   

  
	
  THE NOTES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.01

  	
   

  	
  Form and Dating

  	
   

  	
  30

  
	
  Section 2.02

  	
   

  	
  Execution and Authentication; Aggregate Principal
  Amount

  	
   

  	
  31

  
	
  Section 2.03

  	
   

  	
  Registrar and Paying Agent

  	
   

  	
  32

  
	
  Section 2.04

  	
   

  	
  Paying Agent To Hold Assets in Trust

  	
   

  	
  32

  
	
  Section 2.05

  	
   

  	
  Holder Lists

  	
   

  	
  32

  
	
  Section 2.06

  	
   

  	
  Transfer and Exchange

  	
   

  	
  33

  
	
  Section 2.07

  	
   

  	
  Replacement Notes

  	
   

  	
  33

  
	
  Section 2.08

  	
   

  	
  Outstanding Notes

  	
   

  	
  33

  
	
  Section 2.09

  	
   

  	
  Treasury Notes

  	
   

  	
  34

  
	
  Section 2.10

  	
   

  	
  [Intentionally Omitted]

  	
   

  	
  34

  
	
  Section 2.11

  	
   

  	
  Cancellation

  	
   

  	
  34

  
	
  Section 2.12

  	
   

  	
  Defaulted Interest

  	
   

  	
  35

  
	
  Section 2.13

  	
   

  	
  CUSIP Numbers

  	
   

  	
  35

  
	
  Section 2.14

  	
   

  	
  Deposit of Moneys

  	
   

  	
  35

  
	
  Section 2.15

  	
   

  	
  Book-Entry Provisions for Global Securities

  	
   

  	
  36

  
	
  Section 2.16

  	
   

  	
  Transfer and Exchange of Securities

  	
   

  	
  36

  
	
  Section 2.17

  	
   

  	
  Special Transfer Provisions

  	
   

  	
  40

  
	
  Section 2.18

  	
   

  	
  Issuance of Additional Notes

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REDEMPTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.01

  	
   

  	
  [Intentionally Omitted]

  	
   

  	
  41

  
	
  Section 3.02

  	
   

  	
  Selection of Notes To Be Redeemed

  	
   

  	
  41

  
	
  Section 3.03

  	
   

  	
  Notice of Redemption

  	
   

  	
  42

  
	
  Section 3.04

  	
   

  	
  Effect of Notice of Redemption

  	
   

  	
  43

  
	
  Section 3.05

  	
   

  	
  Deposit of Redemption Price

  	
   

  	
  43

  
	
  Section 3.06

  	
   

  	
  Notes Redeemed in Part

  	
   

  	
  43

  

 

i

 

	
  ARTICLE IV

  
	
   

  
	
  COVENANTS

  
	
   

  
	
  Section 4.01

  	
   

  	
  Payment of Notes

  	
   

  	
  43

  
	
  Section 4.02

  	
   

  	
  Maintenance of Office or Agency

  	
   

  	
  44

  
	
  Section 4.03

  	
   

  	
  Limitation on Restricted Payments

  	
   

  	
  44

  
	
  Section 4.04

  	
   

  	
  Corporate Existence

  	
   

  	
  45

  
	
  Section 4.05

  	
   

  	
  Payment of Taxes and Other Claims

  	
   

  	
  46

  
	
  Section 4.06

  	
   

  	
  Maintenance of Properties and Insurance

  	
   

  	
  46

  
	
  Section 4.07

  	
   

  	
  Compliance Certificate; Notice of Default

  	
   

  	
  46

  
	
  Section 4.08

  	
   

  	
  Compliance with Laws

  	
   

  	
  47

  
	
  Section 4.09

  	
   

  	
  Reports to Holders

  	
   

  	
  47

  
	
  Section 4.10

  	
   

  	
  Waiver of Stay, Extension or Usury Laws

  	
   

  	
  48

  
	
  Section 4.11

  	
   

  	
  Limitations on Transactions with Affiliates

  	
   

  	
  49

  
	
  Section 4.12

  	
   

  	
  Limitation on Incurrence of Additional Indebtedness

  	
   

  	
  50

  
	
  Section 4.13

  	
   

  	
  Limitation on Dividend and Other Payment
  Restrictions Affecting Subsidiaries

  	
   

  	
  50

  
	
  Section 4.14

  	
   

  	
  Change of Control

  	
   

  	
  51

  
	
  Section 4.15

  	
   

  	
  Limitation on Asset Sales

  	
   

  	
  53

  
	
  Section 4.16

  	
   

  	
  Prohibition on Incurrence of Senior Subordinated
  Debt

  	
   

  	
  57

  
	
  Section 4.17

  	
   

  	
  Limitation on Preferred Stock of Restricted
  Subsidiaries

  	
   

  	
  57

  
	
  Section 4.18

  	
   

  	
  Limitation on Liens

  	
   

  	
  57

  
	
  Section 4.19

  	
   

  	
  Limitation of Guarantees by Restricted Subsidiaries

  	
   

  	
  58

  
	
  Section 4.20

  	
   

  	
  Conduct of Business

  	
   

  	
  58

  
	
  Section 4.21

  	
   

  	
  Covenant Termination

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  
	
  SUCCESSOR
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.01

  	
   

  	
  Merger, Consolidation and Sale of Assets

  	
   

  	
  59

  
	
  Section 5.02

  	
   

  	
  Successor Corporation Substituted

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VI

  
	
   

  
	
  DEFAULT
  AND REMEDIES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.01

  	
   

  	
  Events of Default

  	
   

  	
  60

  
	
  Section 6.02

  	
   

  	
  Acceleration

  	
   

  	
  62

  
	
  Section 6.03

  	
   

  	
  Other Remedies

  	
   

  	
  63

  
	
  Section 6.04

  	
   

  	
  Waiver of Past Defaults

  	
   

  	
  63

  
	
  Section 6.05

  	
   

  	
  Control by Majority

  	
   

  	
  63

  
	
  Section 6.06

  	
   

  	
  Limitation on Suits

  	
   

  	
  63

  
	
  Section 6.07

  	
   

  	
  Rights of Holders To Receive Payment

  	
   

  	
  64

  
	
  Section 6.08

  	
   

  	
  Collection Suit by Trustee

  	
   

  	
  64

  
	
  Section 6.09

  	
   

  	
  Trustee May File Proofs of Claim

  	
   

  	
  64

  

 

ii

 

	
  Section 6.10

  	
   

  	
  Priorities

  	
   

  	
  65

  
	
  Section 6.11

  	
   

  	
  Undertaking for Costs

  	
   

  	
  65

  
	
  Section 6.12

  	
   

  	
  Expenses and Services After an Event of Default

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VII

  
	
   

  
	
  TRUSTEE

  
	
   

  
	
  Section 7.01

  	
   

  	
  Duties of Trustee

  	
   

  	
  66

  
	
  Section 7.02

  	
   

  	
  Rights of Trustee

  	
   

  	
  67

  
	
  Section 7.03

  	
   

  	
  Individual Rights of Trustee

  	
   

  	
  69

  
	
  Section 7.04

  	
   

  	
  Trustee’s Disclaimer

  	
   

  	
  69

  
	
  Section 7.05

  	
   

  	
  Notice of Default

  	
   

  	
  69

  
	
  Section 7.06

  	
   

  	
  Reports by Trustee to Holders

  	
   

  	
  69

  
	
  Section 7.07

  	
   

  	
  Compensation and Indemnity

  	
   

  	
  70

  
	
  Section 7.08

  	
   

  	
  Replacement of Trustee

  	
   

  	
  71

  
	
  Section 7.09

  	
   

  	
  Successor Trustee by Merger, Etc.

  	
   

  	
  72

  
	
  Section 7.10

  	
   

  	
  Eligibility; Disqualification

  	
   

  	
  72

  
	
  Section 7.11

  	
   

  	
  Preferential Collection of Claims Against the
  Company

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII

  
	
   

  
	
  DISCHARGE
  OF INDENTURE; DEFEASANCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.01

  	
   

  	
  Termination of the Company’s Obligations

  	
   

  	
  72

  
	
  Section 8.02

  	
   

  	
  Acknowledgment of Discharge by Trustee

  	
   

  	
  74

  
	
  Section 8.03

  	
   

  	
  Application of Trust Money

  	
   

  	
  75

  
	
  Section 8.04

  	
   

  	
  Repayment to the Company

  	
   

  	
  75

  
	
  Section 8.05

  	
   

  	
  Reinstatement

  	
   

  	
  75

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
   

  
	
  AMENDMENTS, SUPPLEMENTS AND WAIVERS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.01

  	
   

  	
  Without Consent of Holders

  	
   

  	
  75

  
	
  Section 9.02

  	
   

  	
  With Consent of Holders

  	
   

  	
  76

  
	
  Section 9.03

  	
   

  	
  Compliance with TIA

  	
   

  	
  77

  
	
  Section 9.04

  	
   

  	
  Revocation and Effect of Consents

  	
   

  	
  77

  
	
  Section 9.05

  	
   

  	
  Notation on or Exchange of Notes

  	
   

  	
  78

  
	
  Section 9.06

  	
   

  	
  Trustee To Sign Amendments, Etc.

  	
   

  	
  78

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  
	
   

  
	
  SUBORDINATION
  OF NOTES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.01

  	
   

  	
  Notes Subordinated to Senior Debt

  	
   

  	
  79

  
	
  Section 10.02

  	
   

  	
  Suspension of Payment When Senior Debt Is in Default

  	
   

  	
  79

  

 

iii

 

	
  Section 10.03

  	
   

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

  	
   

  	
  80

  
	
  Section 10.04

  	
   

  	
  Holders To Be Subrogated to Rights of Holders of
  Senior Debt

  	
   

  	
  82

  
	
  Section 10.05

  	
   

  	
  Obligations of the Company Unconditional

  	
   

  	
  82

  
	
  Section 10.06

  	
   

  	
  Trustee Entitled To Assume Payments Not Prohibited
  in Absence of Notice

  	
   

  	
  83

  
	
  Section 10.07

  	
   

  	
  Application by Trustee of Assets Deposited with It

  	
   

  	
  83

  
	
  Section 10.08

  	
   

  	
  No Waiver of Subordination Provisions

  	
   

  	
  84

  
	
  Section 10.09

  	
   

  	
  Holders Authorize Trustee To Effectuate
  Subordination of Notes

  	
   

  	
  84

  
	
  Section 10.10

  	
   

  	
  Right of Trustee To Hold Senior Debt

  	
   

  	
  85

  
	
  Section 10.11

  	
   

  	
  No Suspension of Remedies

  	
   

  	
  85

  
	
  Section 10.12

  	
   

  	
  No Fiduciary Duty of Trustee to Holders of Senior
  Debt

  	
   

  	
  85

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  XI

  
	
   

  
	
  GUARANTEE
  OF NOTES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.01

  	
   

  	
  Unconditional Guarantee

  	
   

  	
  85

  
	
  Section 11.02

  	
   

  	
  Limitations on Guarantees

  	
   

  	
  87

  
	
  Section 11.03

  	
   

  	
  Execution and Delivery of Guarantee

  	
   

  	
  87

  
	
  Section 11.04

  	
   

  	
  Release of a Guarantor

  	
   

  	
  87

  
	
  Section 11.05

  	
   

  	
  Waiver of Subrogation

  	
   

  	
  88

  
	
  Section 11.06

  	
   

  	
  Immediate Payment

  	
   

  	
  89

  
	
  Section 11.07

  	
   

  	
  No Set-Off

  	
   

  	
  89

  
	
  Section 11.08

  	
   

  	
  Obligations Absolute

  	
   

  	
  89

  
	
  Section 11.09

  	
   

  	
  Obligations Continuing

  	
   

  	
  89

  
	
  Section 11.10

  	
   

  	
  Obligations Not Reduced

  	
   

  	
  89

  
	
  Section 11.11

  	
   

  	
  Obligations Reinstated

  	
   

  	
  90

  
	
  Section 11.12

  	
   

  	
  Obligations Not Affected

  	
   

  	
  90

  
	
  Section 11.13

  	
   

  	
  Waiver

  	
   

  	
  91

  
	
  Section 11.14

  	
   

  	
  No Obligation To Take Action Against the Company

  	
   

  	
  91

  
	
  Section 11.15

  	
   

  	
  Dealing with the Company and Others

  	
   

  	
  91

  
	
  Section 11.16

  	
   

  	
  Default and Enforcement

  	
   

  	
  92

  
	
  Section 11.17

  	
   

  	
  Amendment, Etc.

  	
   

  	
  92

  
	
  Section 11.18

  	
   

  	
  Acknowledgment

  	
   

  	
  92

  
	
  Section 11.19

  	
   

  	
  Costs and Expenses

  	
   

  	
  92

  
	
  Section 11.20

  	
   

  	
  No Waiver; Cumulative Remedies

  	
   

  	
  92

  
	
  Section 11.21

  	
   

  	
  Guarantee in Addition to Other Obligations

  	
   

  	
  93

  
	
  Section 11.22

  	
   

  	
  Severability

  	
   

  	
  93

  
	
  Section 11.23

  	
   

  	
  Successors and Assigns

  	
   

  	
  93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  XII

  
	
   

  
	
  SUBORDINATION
  OF GUARANTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 12.01

  	
   

  	
  Guarantee Obligations Subordinated to Guarantor
  Senior Debt

  	
   

  	
  93

  

 

iv

 

	
  Section 12.02

  	
   

  	
  Suspension of Guarantee Obligations When Guarantor
  Senior Debt Is in Default

  	
   

  	
  93

  
	
  Section 12.03

  	
   

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

  	
   

  	
  95

  
	
  Section 12.04

  	
   

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

  	
   

  	
  96

  
	
  Section 12.05

  	
   

  	
  Obligations of the Guarantors Unconditional

  	
   

  	
  97

  
	
  Section 12.06

  	
   

  	
  Trustee Entitled To Assume Payments Not Prohibited
  in Absence of Notice

  	
   

  	
  98

  
	
  Section 12.07

  	
   

  	
  Application by Trustee of Assets Deposited with It

  	
   

  	
  98

  
	
  Section 12.08

  	
   

  	
  No Waiver of Subordination Provisions

  	
   

  	
  98

  
	
  Section 12.09

  	
   

  	
  Holders Authorize Trustee To Effectuate
  Subordination of Guarantee Obligations

  	
   

  	
  99

  
	
  Section 12.10

  	
   

  	
  Right of Trustee To Hold Guarantor Senior
  Indebtedness

  	
   

  	
  99

  
	
  Section 12.11

  	
   

  	
  No Suspension of Remedies

  	
   

  	
  100

  
	
  Section 12.12

  	
   

  	
  No Fiduciary Duty of Trustee to Holders of Guarantor
  Senior Debt

  	
   

  	
  100

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  XIII

  
	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 13.01

  	
   

  	
  TIA Controls

  	
   

  	
  100

  
	
  Section 13.02

  	
   

  	
  Notices

  	
   

  	
  100

  
	
  Section 13.03

  	
   

  	
  Communications by Holders with Other Holders

  	
   

  	
  101

  
	
  Section 13.04

  	
   

  	
  Certificate and Opinion as to Conditions Precedent

  	
   

  	
  101

  
	
  Section 13.05

  	
   

  	
  Statements Required in Certificate or Opinion

  	
   

  	
  102

  
	
  Section 13.06

  	
   

  	
  Rules by Trustee, Paying Agent, Registrar

  	
   

  	
  102

  
	
  Section 13.07

  	
   

  	
  Legal Holidays

  	
   

  	
  102

  
	
  Section 13.08

  	
   

  	
  Governing Law

  	
   

  	
  102

  
	
  Section 13.09

  	
   

  	
  No Adverse Interpretation of Other Agreements

  	
   

  	
  103

  
	
  Section 13.10

  	
   

  	
  No Recourse Against Others

  	
   

  	
  103

  
	
  Section 13.11

  	
   

  	
  Successors

  	
   

  	
  103

  
	
  Section 13.12

  	
   

  	
  Duplicate Originals

  	
   

  	
  103

  
	
  Section 13.13

  	
   

  	
  Severability

  	
   

  	
  103

  
	
  Section 13.14

  	
   

  	
  Independence of Covenants

  	
   

  	
  103

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  	
   

  	
   

  	
  1

  

 

	
  Exhibit A

  	
  –

  	
  Form of Note

  
	
  Exhibit B

  	
  –

  	
  Form of Legend for Global Notes

  
	
  Exhibit C

  	
  –

  	
  Form of Transfer Certificates

  
	
  Exhibit D

  	
  –

  	
  Form of IAI Transfer Certificate

  
	
  Exhibit E

  	
  –

  	
  Form of Guarantee

  

 

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

 

v

 

INDENTURE, dated as of March 17,
2010, among HUNTSMAN INTERNATIONAL LLC, a Delaware limited liability company
(the “Company”), each of the Guarantors named herein, as guarantors, and Wells
Fargo Bank, National Association, a national banking association, as trustee
(the “Trustee”).

 

The Company has duly
authorized the creation of an issue of 85/8% Senior Subordinated Notes due 2020 (the “Notes”).  All things necessary to make the Notes, when
duly issued and executed by the Company and authenticated and delivered
hereunder, the valid and binding obligations of the Company and to make this
Indenture a valid and binding agreement of the Company have been done.

 

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

 

ARTICLE I

 

DEFINITIONS AND
INCORPORATION BY REFERENCE

 

Section 1.01           Definitions.

 

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

 

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

 

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

 

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

 

“Affiliate” means, with
respect to any specified Person, any other Person who directly or indirectly
through one or more intermediaries controls, or is controlled by, or is under
common control with, such specified Person. 
The term “control” means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or
otherwise; and the terms “controlling” and “controlled” have meanings
correlative of the foregoing; provided, however,

 

 

that none of the Initial
Purchasers or their Affiliates shall be deemed to be an Affiliate of the
Company.

 

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

 

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

 

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

 

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

 

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

 

“Asset Sale” means any
direct or indirect sale, issuance, conveyance, transfer, lease (other than
operating leases entered into in the ordinary course of business), assignment
or other transfer for value by the Company or any of its Restricted
Subsidiaries (including any Sale and Leaseback Transaction) to any Person other
than the Company or a Restricted Subsidiary of the Company of (a) any
Capital Stock of any Restricted Subsidiary of the Company; or (b) any
other property or assets of the Company or any Restricted Subsidiary of the
Company other than in the ordinary course of business; provided, however,
that Asset Sales shall not include (i) a transaction or series of related
transactions for which the Company or its Restricted Subsidiaries receive
aggregate consideration of less than $50 million, (ii) sales, pledges,
conveyances or other transfers of accounts receivable or participations or
other interests therein and related assets (including contract rights) of the
type specified in the definition of “Qualified Securitization Transaction”
directly or indirectly to a Securitization Entity for the Fair Market Value
thereof, (iii) sales or grants of licenses to use the patents, trade
secrets, know-how and other intellectual property of the Company or any of its
Restricted Subsidiaries to the extent that such license does not prohibit the
Company or any of its Restricted Subsidiaries from using the technologies
licensed or require the Company or any of its Restricted Subsidiaries to pay
any fees for any such use, (iv) the sale, lease, conveyance, disposition
or other transfer (A) of all or substantially all of the assets of the
Company as permitted under Section 5.01, (B) of any Capital Stock or
other ownership interest in or assets or property of an Unrestricted Subsidiary
or a Person which is not a Subsidiary, (C) pursuant to any foreclosure of
assets or other remedy provided by applicable law to a creditor of the Company
or any Subsidiary of the Company with a Lien on such assets, which Lien is
permitted under this Indenture; provided that such foreclosure or other
remedy is conducted in a commercially reasonable manner or in accordance with
any bankruptcy law, (D) involving only Cash Equivalents, Foreign Cash
Equivalents or inventory in the ordinary course of business or obsolete or worn
out property or property that is no longer useful in the conduct of the business
of the Company or its Restricted Subsidiaries in the ordinary course of
business consistent with past practices of the Company or such Restricted
Subsidiaries or (E) including 

 

2

 

only the lease or sublease
of any real or personal property in the ordinary course of business, (v) the
consummation of any transaction in accordance with the terms of Sections 4.03
and 5.01 hereof and (vi) Permitted Investments.

 

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

 

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

 

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

 

“Business Day” means a day
that is not a Saturday or Sunday or a day on which banking institutions in New
York, New York or place of payment are not required by law to be open.

 

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

 

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

 

“Cash Equivalents” means (i) a
marketable obligation, maturing within two years after issuance thereof, issued
or guaranteed by the United States of America or an instrumentality or agency
thereof, (ii) a certificate of deposit or banker’s acceptance, maturing
within one year after issuance thereof, issued by any lender under any Credit
Facility, or a national or state bank or trust company or a European, Canadian
or Japanese bank, in each case having capital, surplus and undivided profits of
at least $100,000,000 and whose long-term unsecured debt has a rating of “A” or
better by S&P or A2 or better by Moody’s or the equivalent rating by any
other nationally recognized rating agency (provided that the aggregate
face amount of all Investments in certificates of deposit or bankers’
acceptances issued by the principal offices of or branches of such European or
Japanese banks located outside the United States of America shall not at any
time exceed 33 1/3% of all Investments described in this definition), (iii) open
market commercial paper, maturing within 270 days after issuance thereof, which
has a rating of A1 or better by S&P or P1 or better by Moody’s or the
equivalent rating by any other nationally recognized rating agency, (iv) repurchase
agreements and reverse repurchase agreements with a term not in excess of one
year with any financial institution which has been elected as a primary
government securities dealer by the Federal Reserve Board or whose securities
are rated AA- or better by 

 

3

 

S&P or Aa3 or better by
Moody’s or the equivalent rating by any other nationally recognized rating
agency relating to marketable direct obligations issued or unconditionally
guaranteed by the United States of America or any agency or instrumentality
thereof and backed by the full faith and credit of the United States of
America, (v) “Money Market” preferred stock maturing within six months
after issuance thereof or municipal bonds issued by a corporation organized
under the laws of any state of the United States of America, which has a rating
of “A” or better by S&P or Moody’s or the equivalent rating by any other
nationally recognized rating agency, (vi) tax exempt floating rate option
tender bonds backed by letters of credit issued by a national or state bank
whose long-term unsecured debt has a rating of AA or better by S&P or Aa2
or better by Moody’s or the equivalent rating by any other nationally
recognized rating agency, and (vii) shares of any money market mutual fund
rated at least AAA or the equivalent thereof by S&P or at least Aaa or the
equivalent thereof by Moody’s or any other mutual fund holding assets
consisting (except for de minimis amounts) of the type specified in clauses (i) through
(vi) above.

 

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

 

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

 

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

 

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

 

“Clearing Agency” has
meaning provided in Section 2.15.

 

“Clearstream” shall mean
Clearstream Banking S.A.

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

“Consolidated Fixed Charge Coverage Ratio” means,
with respect to any Person, the ratio of Consolidated EBITDA of such Person
during the four full fiscal quarters for which financial statements are
available as provided pursuant to Section 4.09 (the “Four Quarter Period”)
ending on or prior to the date of the transaction giving rise to the need to
calculate the Consolidated Fixed Charge Coverage Ratio (the “Transaction Date”)
to Consolidated Fixed 

 

5

 

Charges of such Person for
the Four Quarter Period.  For purposes of
this definition, “Consolidated EBITDA” and “Consolidated Fixed Charges” shall
be calculated after giving effect on a pro forma basis for the period of such
calculation to (i) the incurrence or repayment or other reduction or
discharge of any Indebtedness of such Person or any of its Restricted Subsidiaries
(and the application of the proceeds thereof) giving rise to the need to make
such calculation and any incurrence or repayment of other Indebtedness (and the
application of the proceeds thereof), other than the incurrence or repayment of
Indebtedness in the ordinary course of business for working capital purposes
pursuant to working capital facilities, occurring during the Four Quarter
Period or at any time subsequent to the last day of the Four Quarter Period and
prior to the Transaction Date, as if such incurrence or repayment, as the case
may be (and the application of the proceeds thereof), occurred on the first day
of the Four Quarter Period and (ii) any asset sales (other than asset
sales (A) in the ordinary course of 
business or (B) involving a nominal amount of gross assets of less
than $25 million) or Asset Acquisitions (including any Asset Acquisition giving
rise to the need to make such calculation) occurring during the Four Quarter
Period or at any time subsequent to the last day of the Four Quarter Period and
on or prior to the Transaction Date, as if such Asset Sale or Asset Acquisition
(including the incurrence, assumption or liability for any such Acquired
Indebtedness) occurred on the first day of the Four Quarter Period.  If such Person or any of its Restricted Subsidiaries
directly or indirectly guarantees Indebtedness of a Person other than the
Company or a Restricted Subsidiary, the preceding sentence shall give effect to
the incurrence of such guaranteed Indebtedness as if such Person or any
Restricted Subsidiary of such Person had directly incurred or otherwise assumed
such guaranteed Indebtedness. 
Furthermore, in calculating “Consolidated Fixed Charges” for purposes of
determining the denominator (but not the numerator) of this “Consolidated Fixed
Charge Coverage Ratio,” (1) interest on outstanding Indebtedness determined
on a fluctuating basis as of the Transaction Date and which will continue to be
so determined thereafter shall be deemed to have accrued at a fixed rate per
annum equal to the rate of interest on such Indebtedness in effect on the
Transaction Date; (2) if interest on any Indebtedness actually incurred on
the Transaction Date may optionally be determined at an interest rate based
upon a factor of a prime or similar rate, a eurocurrency interbank offered
rate, or other rates, then the interest rate in effect on the Transaction Date
will be deemed to have been in effect during the Four Quarter Period; and (3) notwithstanding
clause (1) above, interest on Indebtedness determined on a fluctuating
basis, to the extent such interest is covered by agreements relating to
Interest Swap Obligations, shall be deemed to accrue at the rate per annum
resulting after giving effect to the operation of such agreements.

 

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

 

“Consolidated Interest Expense” means, with respect
to any Person for any period, the sum of, without duplication:  (i) the aggregate of the interest
expense of such Person and its Restricted Subsidiaries for such period
determined on a consolidated basis in accordance 

 

6

 

with GAAP, including without
limitation, (a) any amortization of debt discount and amortization or
write-off of deferred financing costs, excluding such costs relating to early
retirement of debt, (b) the net costs under Interest Swap Obligations, (c) all
capitalized interest and (d) the interest portion of any deferred payment
obligation; and (ii) the interest component of Capitalized Lease Obligations
paid, accrued and/or scheduled to be paid or accrued by such Person and its Restricted
Subsidiaries during such period as determined on a consolidated basis in
accordance with GAAP.

 

“Consolidated Leverage Ratio” means, for any Person,
the ratio of (i) Indebtedness of such Person, and its Restricted
Subsidiary to (ii) Consolidated EBITDA of such Person calculated as set
forth in the definition of Consolidated Fixed Charge Coverage Ratio.

 

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

 

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

 

7

 

“Continuing Managers” means, as of any date, the
collective reference to (i) all members of the Board of Managers of the
Company who have held office continuously since the Issue Date, and (ii) all
members of the Board of Managers of the Company who assumed office after such
date and whose appointment or nomination for election by the holders of the Company’s
Capital Stock was approved by a vote of at least 50% of the Continuing Managers
in office immediately prior to such appointment or nomination or by the
Huntsman Group.

 

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

 

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

 

“Credit Agreement” means the senior secured Credit
Agreement, dated as of August 16, 2005, as amended, among the Company and
the financial institutions party thereto, together with the related documents
thereto (including, without limitation, any guarantee agreements and security
documents), in each case as such agreements may be amended, supplemented,
extended or otherwise modified from time to time, and any one or more debt
facilities, indentures or other agreements that refinances, replaces or
otherwise restructures (including increasing the amount of available borrowings
thereunder in accordance with Section 4.12 or making Restricted
Subsidiaries of the Company a borrower or guarantor thereunder) all or any portion
of the Indebtedness under such agreement or any successor or replacement
agreement and whether including any additional obligors or with the same or any
other agent, lender, investor or group of lenders or investors or with other
financial institutions, lenders or investors.

 

“Credit Facilities” means any one or more debt
facilities, indentures or other agreements governing Indebtedness, including
the Credit Agreement.

 

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

 

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

 

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

 

“Depositary” means DTC.

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

“Equity Offering” means any sale of Qualified
Capital Stock of the Company or any capital contribution to the equity of the
Company from any person other than a Subsidiary of the Company.

 

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

 

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

 

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

 

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

 

“Fair Market Value” means, with respect to any asset
or property, the price which could be negotiated in an arm’s-length, free
market transaction, for cash, between a willing seller and a willing and able
buyer, neither of whom is under undue pressure or compulsion to complete the
transaction.  Fair market value (i) with
respect to a determination of value in excess of $100 million shall be
determined by the Board of Managers of the Company acting reasonably and in
good faith and shall be evidenced by a Board Resolution delivered to the
Trustee or (ii) in all other cases, by an Officers’ Certificate delivered
to the Trustee.

 

9

 

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

 

“Foreign Subsidiary” means any Subsidiary of the
Company (other than a Guarantor) organized under the laws of, and conducting a
substantial portion of its business in, any jurisdiction other than the United
States of America or any state thereof or the District of Columbia.

 

“Funds” means the aggregate amount of U.S. Legal
Tender and/or U.S. Government Obligations deposited with the Trustee pursuant
to Article Eight.

 

“GAAP” means generally accepted accounting
principles set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as may be approved by a significant
segment of the accounting profession of the United States of America, which
were in effect as of the Issue Date.

 

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

 

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

 

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

 

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

 

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

 

10

 

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

 

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

 

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

 

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

 

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

 

“Huntsman Corporation” means Huntsman Corporation, a
Delaware corporation.

 

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

 

11

 

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

 

“Indebtedness” means with respect to any Person,
without duplication, (i) all Obligations of such Person for borrowed
money, (ii) all Obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments, (iii) all Capitalized Lease
Obligations of such Person, (iv) all Obligations of such Person issued or
assumed as the deferred purchase price of property that is due more than six
months after taking delivery of such property, all conditional sale obligations
and all Obligations under any title retention agreement (but excluding trade
accounts payable and other accrued liabilities arising in the ordinary course
of business that are not overdue by 90 days or more or are being contested in
good faith by appropriate proceedings promptly instituted and diligently
conducted), (v) all Obligations for the reimbursement of any obligor on
any letter of credit, banker’s acceptance or similar credit transaction, (vi) guarantees
in respect of Indebtedness referred to in clauses (i) through (v) above
and clause (viii) below, (vii) all Obligations of any other Person of
the type referred to in clauses (i) through (vi) which are secured by
any lien on any property or asset of such Person, the amount of such Obligation
being deemed to be the lesser of the Fair Market Value of such property or
asset or the amount of the Obligation so secured, (viii) all Obligations
under Currency Agreements and Interest Swap Agreements of such Person and (ix) all
Disqualified Capital Stock issued by such Person with the amount of
Indebtedness represented by such Disqualified Capital Stock being equal to the
greater of its voluntary or involuntary liquidation preference and its maximum
fixed repurchase price, but excluding accrued dividends, if any.  For purposes hereof, the “maximum fixed
repurchase price” of any Disqualified Capital Stock which does not have a fixed
repurchase price shall be calculated in accordance with the terms of such
Disqualified Capital Stock as if such Disqualified Capital Stock were purchased
on any date on which Indebtedness shall be required to be determined pursuant
to this Indenture, and if such price is based upon, or measured by, the Fair
Market Value of such Disqualified Capital Stock, such Fair Market Value shall
be determined reasonably and in good faith by the Board of Managers of the
issuer of such Disqualified Capital Stock; provided, however,
that notwithstanding the foregoing, “Indebtedness” shall not include (i) advances
paid by customers in the ordinary course of business for services or products
to be provided or delivered in the future, (ii) deferred taxes or (iii) unsecured
indebtedness of the Company and/or its Restricted Subsidiaries incurred to
finance insurance premiums in a principal amount not in excess of the insurance
premiums to be paid by the Company and/or its Restricted Subsidiaries for a
three year period beginning on the date of any incurrence of such indebtedness.

 

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

 

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

 

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

 

“Initial Notes” means the $350,000,000 in aggregate
principal amount of 85/8% Senior Subordinated Notes
due 2020 of the Company that are issued on the Issue Date.

 

12

 

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

 

“Initial Purchasers” means Goldman, Sachs &
Co., J.P. Morgan Securities Inc., Barclays Capital Inc., Banc of America
Securities LLC, Citigroup Global Markets Inc. and Credit Suisse Securities
(USA) LLC.

 

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

 

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

 

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

 

“Investment” means, with respect to any Person, any
direct or indirect loan or other extension of credit (including, without
limitation, a guarantee) or capital contribution to (by means of any transfer
of cash or other property to others or any payment for property or services for
the account or use of others), or any purchase or acquisition by such Person of
any Capital Stock, bonds, notes, debentures or other securities or evidences of
Indebtedness issued by, any other Person. 
“Investment” excludes extensions of trade credit by the Company and its
Restricted Subsidiaries on commercially reasonable terms in accordance with
normal trade practices of the Company or such Restricted Subsidiary, as the
case may be.  For the purposes of Section 4.03
hereof, (i) “Investment” shall include and be valued at the Fair Market
Value of the net assets of any Restricted Subsidiary at the time that such
Restricted Subsidiary is designated an Unrestricted Subsidiary after the Issue
Date and shall exclude the Fair Market Value of the net assets of any
Unrestricted Subsidiary at the time that such Unrestricted Subsidiary is
designated a Restricted Subsidiary and (ii) the amount of any Investment
is the original cost of such Investment plus the cost of all additional
Investments by the Company or any of its Restricted Subsidiaries, without any
adjustments for increases or decreases in value, or write-ups, write-downs or
write-offs with respect to such Investment, reduced by the payment of dividends
or distributions in connection with such Investment or any other amounts
received in respect of such Investment; provided that no such payment of
dividends or distributions or receipt of any such other amounts shall reduce
the amount of any Investment if such payment of dividends or distributions or receipt
of any such amounts would be included in Consolidated Net Income.  If the Company or any Restricted Subsidiary
of the Company sells or otherwise disposes of any Common Stock of any direct or
indirect Restricted Subsidiary of the Company such that, after giving effect to
any such sale or disposition, the Company no longer owns, directly or indirectly,
greater than 50% of the outstanding Common Stock of such Restricted Subsidiary,
the Company shall be deemed to have made an Investment on the date of any such
sale or disposition equal to the Fair Market Value of the Common Stock of such
Restricted Subsidiary not sold or disposed of.

 

13

 

“Investment Grade Rating” means a rating equal to or
higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by
S&P.

 

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

 

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

 

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

 

“Maturity Date” means March 15, 2020.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

14

 

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

 

“Notes” means, the Initial Notes (including, without
limitation, any Additional Notes) and the Exchange Notes.

 

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

 

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

 

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

 

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

 

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

 

“Participants” means institutions that have accounts
with DTC or its nominee.

 

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

 

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

 

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

 

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

 

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

 

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

 

15

 

(ii)                                  Indebtedness
incurred under Credit Facilities pursuant to this clause (ii) in an
aggregate principal amount not exceeding the greater of $3.3 billion or 30% of
Total Assets of the Company at any one time outstanding;

 

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

 

(iv)                              Interest Swap
Obligations of the Company relating to Indebtedness of the Company or any of
its Restricted Subsidiaries (or Indebtedness that the Company or any of its
Restricted Subsidiaries reasonably intends to incur within six months) and Interest
Swap Obligations of any Restricted Subsidiary of the Company relating to Indebtedness
of such Restricted Subsidiary (or Indebtedness that such Restricted Subsidiary
reasonably intends to incur within six months); provided, however,
that any such Interest Swap Obligations will constitute “Permitted Indebtedness”
only if they are entered into to protect the Company and its Restricted
Subsidiaries from fluctuations in interest rates on Indebtedness permitted
under this Indenture to the extent the notional principal amount of such
Interest Swap Obligations, when incurred, does not exceed the principal amount
of the Indebtedness to which such Interest Swap Obligations relate;

 

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

 

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

 

(vii)                           Indebtedness of
the Company to a Restricted Subsidiary for so long as such Indebtedness is held
by a Restricted Subsidiary, in each case subject to no Lien (other than Liens
securing intercompany notes pledged under any Credit Facility); provided
that (a) any Indebtedness of the Company to any Restricted Subsidiary
(other than pursuant to notes pledged under any Credit Facility) is unsecured
and subordinated, pursuant to a written agreement, to the Company’s obligations
under this Indenture and the Notes and (b) if as of any date any Person
other than a Restricted Subsidiary owns or holds any such Indebtedness or any
Person holds a Lien in respect of such Indebtedness

 

16

 

(other
than pledges securing any Credit Facility), such date shall be deemed the incurrence
of Indebtedness not constituting Permitted Indebtedness by the Company;

 

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

 

(ix)                                Indebtedness of
the Company or any of its Restricted Subsidiaries represented by letters of
credit for the account of the Company or such Restricted Subsidiary, as the
case may be, in order to provide security for workers’ compensation claims,
payment obligations in connection with self-insurance or similar requirements
in the ordinary course of business;

 

(x)                                   Refinancing
Indebtedness;

 

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

 

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

 

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

 

(xiv)                         Indebtedness of
the Company or any Subsidiary (A) representing Capitalized Lease
Obligations not to exceed $150 million outstanding at any time or (B) constituting
purchase money Indebtedness incurred to finance property or assets of the
Company or any Restricted Subsidiary of the Company acquired in the ordinary
course of business; provided, however, that such purchase money Indebtedness
shall not exceed the cost of such property or assets and shall not be secured
by any property or assets of the Company or any Restricted Subsidiary of the
Company other than the property and assets so acquired;

 

(xv)                            Indebtedness of
Foreign Subsidiaries that are Restricted Subsidiaries to the extent that the
aggregate outstanding amount of Indebtedness incurred by such Foreign Subsidiaries
under this clause (xv) does not exceed at any one time an amount 

 

17

 

equal
to the sum of (A) 80% of the consolidated book value of the accounts receivable
of all Foreign Subsidiaries and (B) 60% of the consolidated book value of
the inventory of all Foreign Subsidiaries; provided, however,
that notwithstanding the foregoing limitation, Foreign Subsidiaries may incur
in the aggregate up to $150 million of Indebtedness outstanding at any one
time;

 

(xvi)                         Indebtedness of
the Company and its Domestic Subsidiaries pursuant to over draft lines or
similar extensions of credit in an aggregate amount not to exceed $30 million
at any one time outstanding and Indebtedness of Foreign Subsidiaries pursuant
to over draft lines or similar extensions of credit in an aggregate principal
amount not to exceed $60 million at any one time outstanding;

 

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

 

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

 

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

 

(xx)                              Indebtedness of
the Company to any of its Subsidiaries or other entities formed as necessary or
customary under the laws of the relevant jurisdiction incurred in connection
with the sale, pledge or other conveyance of accounts receivable or participations
or any interests therein and related assets directly or indirectly to the
Company by any such Subsidiary which assets or interests are subsequently
conveyed, pledged or otherwise transferred, directly or indirectly, by the
Company to a Securitization Entity in a Qualified Securitization Transaction;

 

(xxi)                           additional
Indebtedness of the Company and its Restricted Subsidiaries in an aggregate
principal amount not to exceed the greater of $500 million or 2% of Total
Assets of the Company at any one time outstanding; and

 

(xxii)                        (A) guarantees
(“Upstream Guarantees”) issued by the Company or any guarantor of Indebtedness
of a Huntsman Public Parent (“Parent Debt”), provided that:

 

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

 

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

 

18

 

amount of reasonable
expenses incurred by the Company, in each case in connection with the
Refinancing of such HI Refinanced Debt;

 

3.     the HI
Refinanced Debt is not incurred in connection with or in anticipation or
contemplation of the Refinancing of such HI Refinanced Debt; and

 

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

 

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

 

or

 

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

 

provided that:

 

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

 

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

 

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

 

For purposes of determining compliance with Section 4.12,
in the event that an item of Indebtedness meets the criteria of more than one
of the categories of Permitted Indebtedness described in clauses (i) through
(xxii) above or is entitled to be incurred pursuant to the Consolidated Fixed
Charge Coverage Ratio provisions of Section 4.12, the Company shall, in
its sole discretion, classify (or later reclassify) such item of Indebtedness
in any manner that complies with Section 4.12; provided that $1.4 billion of Indebtedness outstanding
under the Credit Agreement on the

 

19

 

Issue Date (and any refinancings thereof)
shall be deemed to have been incurred pursuant to clause (ii) above.
Accrual of interest, accretion or amortization of original issue discount, the
payment of interest on any Indebtedness in the form of additional Indebtedness
with the same terms, and the payment of dividends on Disqualified Capital Stock
in the form of additional shares of the same class of Disqualified Capital
Stock will not be deemed to be an incurrence of Indebtedness or an issuance of
Disqualified Capital Stock for purposes of Section 4.12.

 

“Permitted Investments” means (i) Investments
by the Company or any Restricted Subsidiary of the Company in any Person that
is or will become immediately after such Investment a Restricted Subsidiary of
the Company or that will merge or consolidate into the Company or a Restricted
Subsidiary of the Company; (ii) Investments in the Company by any
Restricted Subsidiary of the Company; provided that any Indebtedness
evidencing such Investment is unsecured and subordinated (other than pursuant
to intercompany notes pledged under any Credit Facility), pursuant to a written
agreement, to the Company’s obligations under the Notes and this Indenture; (iii) investments
in cash and Cash Equivalents; (iv) loans and advances to employees and
officers of the Company and its Restricted Subsidiaries in the ordinary course
of business for travel, relocation and related expenses; (v) Investments
in Unrestricted Subsidiaries or joint ventures not to exceed the greater of
$300 million or 3% of Total Assets of the Company, plus (A) the aggregate
net after-tax amount returned in cash on or with respect to any Investments
made in Unrestricted Subsidiaries and joint ventures whether through interest
payments, principal payments, dividends or other distributions or payments, (B) the
net after-tax cash proceeds received by the Company or any Restricted
Subsidiary from the disposition of all or any portion of such Investments
(other than to a Restricted Subsidiary of the Company), (C) upon
redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, the
Fair Market Value of such Subsidiary and (D) the net cash proceeds
received by the Company from the issuance of Specified Venture Capital Stock; (vi) Investments
in securities received pursuant to any plan of reorganization or similar
arrangement upon the bankruptcy or insolvency of any debtors of the Company or
its Restricted Subsidiaries; (vii) Investments made by the Company or its
Restricted Subsidiaries as a result of consideration received in connection
with an Asset Sale made in compliance with Section 4.15; (viii) Investments
existing on the Issue Date; (ix) any Investment by the Company or a Wholly
Owned Subsidiary of the Company or by Tioxide Group or Holdings U.K., in a
Securitization Entity or any Investment by a Securitization Entity in any other
Person in connection with a Qualified Securitization Transaction; provided
that any Investment in a Securitization Entity is in the form of a Purchase
Money Note or an equity interest; (x) Investments by the Company in
Rubicon, Inc. and Louisiana Pigment Company (each a “Joint Venture”), so
long as: (A) such Joint Venture does not have any Indebtedness for borrowed
money at any time on or after the date of such Investment (other than
Indebtedness owing to the equity holders of such Joint Ventures), (B) the
documentation governing such Joint Venture does not contain a restriction on distributions
to the Company, and (C) such Joint Venture is engaged only in the business
of manufacturing product used or marketed by the Company and its Restricted
Subsidiaries and/or the joint venture partner, and business reasonably related
thereto; (xi) Investments by Foreign Subsidiaries in Foreign Cash Equivalents;
(xii) loans to any Huntsman Parent Company for the purposes described in clause
(7) of the second paragraph of Section 4.03 which, when aggregated
with the payment made under such clause, will not exceed $10 million in any
fiscal year; (xiii) any Indebtedness of the Company to any of its Subsidiaries
or other entities formed as necessary or customary under the laws of the
relevant jurisdiction incurred in connection with the conveyance,

 

20

 

pledge or other transfer of
accounts receivable or participations or interests therein and related assets
directly or indirectly to the Company by any such Subsidiary which assets are
subsequently conveyed, pledged or otherwise transferred, directly or indirectly,
by the Company to a Securitization Entity in a Qualified Securitization
Transaction; (xiv) Investments by the Company or any of its Restricted
Subsidiaries in a Permitted Joint Venture, so long as:  (A) such Permitted Joint Venture does
not have any Indebtedness for borrowed money which would be required to be
reflected on a balance sheet as debt under GAAP at any time on or after the
date of such Investment (other than Indebtedness owing to the equity holders of
such Permitted Joint Venture, the Company or any Restricted Subsidiary); (B) the
documentation governing such Permitted Joint Venture does not contain a
restriction on distributions to the Company or its Restricted Subsidiaries; and
(C) after giving pro forma effect to such Investment, the Company would be
permitted to incur $1.00 of additional Indebtedness other than Permitted
Indebtedness under Section 4.12; (xv) additional Investments in an
aggregate amount not exceeding $150 million at any one time outstanding; and
(xvi) the incurrence of Guarantees permitted by clause (xxii) of the definition
of Permitted Indebtedness.

 

“Permitted
Joint Venture” means, with respect to any Person:

 

1.                                       any corporation,
association, or other business entity (other than a partnership) of which 50%
or more of the total voting power of shares of Capital Stock entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time of determination owned
or controlled, directly or indirectly, by such Person or one or more of the
Restricted Subsidiaries of that Person or a combination thereof; and

 

2.                                       any partnership, joint
venture, limited liability company or similar entity of which

 

(a)                                  50% or more of the capital
accounts, distribution rights, total equity and voting interests or general or
limited partnership interests, as applicable, are owned or controlled, directly
or indirectly, by such Person or one or more of the other Restricted
Subsidiaries of that Person or a combination thereof whether in the form of
membership, general, special or limited partnership interests or otherwise; and

 

(b)                                 either such
Person or any Restricted Subsidiary of such Person is a controlling general
partner or no other Person controls such entity.

 

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

 

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

 

21

 

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

 

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

 

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

 

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

 

“Private Placement Legend” means the legend
initially to be set forth on Restricted Securities in the form set forth on the
face of Exhibit A.

 

“pro forma” means, unless otherwise provided herein,
with respect to any calculation made or required to be made pursuant to the
terms of this Indenture, a calculation in accordance with Article 11 of
Regulation S-X promulgated under the Securities Act.

 

“Purchase Agreement” means the Purchase Agreement,
dated March 12, 2010, relating to the issue and sale of the Initial Notes
to be issued on the Issue Date.

 

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

 

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

 

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

 

“Qualified Securitization Transaction” means any
transaction or series of transactions that may be entered into by the Company
or any of its Subsidiaries pursuant to which the Company or any of its
Subsidiaries may sell, convey or otherwise transfer pursuant to terms necessary
or customary in the relevant jurisdiction, directly or indirectly, to (a) a
Securitization Entity or to the Company which subsequently transfers to a
Securitization Entity (in the case of a transfer by the Company or any of its
Subsidiaries) and (b) any other Person (in the case of transfer by a Securitization
Entity), or may grant a security interest in any accounts receivable or any
participations or other interests therein (whether now existing or arising or
acquired in the future) of the Company or any of its Subsidiaries or other
entities formed as necessary or customary under the laws of the relevant
jurisdiction, and any assets related thereto including, without limitation, all
collateral securing such accounts receivable, all contracts and contract rights
and all guarantees or other obligations in respect of such accounts receivable,
proceeds of such accounts receivable and other assets (including contract
rights) which are necessarily or customarily transferred

 

22

 

in the relevant jurisdiction
or in respect of which security interests are necessarily or customarily
granted in the relevant jurisdiction in connection with asset securitization
transactions involving accounts receivable.

 

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

 

“Rating Agencies” means Moody’s and S&P.

 

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

 

“Redemption Date” means, with respect to any Note,
the Maturity Date of such Note or the earlier date on which such Note is to be
redeemed by the Company pursuant to paragraph 5 of the Notes.

 

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

 

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

 

“Reference Treasury Dealer” means each of Goldman,
Sachs & Co., Banc of America Securities LLC, Barclays Capital Inc.,
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P.
Morgan Securities Inc., and their respective successors; provided, however,
that if any of the foregoing shall cease to be a primary U.S. Government
securities dealer in New York City (a “Primary Treasury Dealer”), the Company
shall substitute therefor another Reference Treasury Dealer.

 

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

 

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

 

“Refinancing Indebtedness” means any Refinancing by
the Company or any Restricted Subsidiary of the Company of Indebtedness
incurred in accordance with the Fixed Charge Coverage Ratio test set forth in Section 4.12
or Indebtedness described in clauses (i), (iii), (x), (xiv)(B) or (xv) of
the definition of “Permitted Indebtedness,” in each case that does not (1) result
in an increase in the aggregate principal amount of Indebtedness of such Person
as of the date of such proposed Refinancing (plus the amount of any premium
required to be paid under the terms of the instrument governing such
Indebtedness and plus the amount of reasonable expenses incurred by the Company
in connection with such Refinancing) or (2) create Indebtedness

 

23

 

with (A) a Weighted
Average Life to Maturity that is less than the Weighted Average Life to
Maturity of the Indebtedness being Refinanced or (B) a final maturity
earlier than the final maturity of the Indebtedness being Refinanced; provided
that (x) if such Indebtedness being Refinanced is Indebtedness solely of
the Company, then such Refinancing Indebtedness shall be Indebtedness solely of
the Company and (y) if such Indebtedness being Refinanced is subordinate
or junior to the Notes, then such Refinancing Indebtedness shall be subordinate
to the Notes at least to the same extent and in the same manner as the
Indebtedness being Refinanced.

 

“Registrar” has the meaning provided in Section 2.03.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Restricted Payment” means to

 

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

 

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

 

24

 

 

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

 

4.             make
any Investment other than Permitted Investments.

 

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

 

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

 

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

 

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

 

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

 

“Securitization Entity” means a Wholly Owned
Subsidiary of the Company (or Tioxide Group or Holdings U.K. or another Person
in which the Company or any Subsidiary of the Company makes an Investment and
to which the Company or any Subsidiary of the Company transfers, directly or
indirectly, accounts receivable or participations or interests therein or
related assets) which engages in no activities other than in connection with
the financing of accounts receivable and which is designated by the Board of
Managers of the Company (as provided below) as a Securitization Entity (a) no
portion of the Indebtedness or any other Obligations (contingent or otherwise)
of which (i) is guaranteed by the Company or any Subsidiary of the Company
(other than the Securitization Entity)(excluding guarantees of Obligations
(other than the principal of, and interest on, Indebtedness)) pursuant to
Standard Securitization Undertakings, (ii) is recourse to or obligates the
Company or any Subsidiary of the Company (other than the Securitization Entity)
in any way other than pursuant to Standard Securitization Undertakings or (iii) subjects
any property or asset of the Company or any Subsidiary of the Company (other
than the Securitization Entity), directly or indirectly, contingently or
otherwise, to the satisfaction thereof, other than pursuant to Standard
Securitization Undertakings and other than any interest in the accounts
receivable and related assets being financed (whether in the form of any equity
interest in such assets or subordinated indebtedness payable primarily from
such financed assets) retained or acquired by the Company or any Subsidiary of
the Company, (b) with which neither the Company nor any Subsidiary of the
Company has any material contract, agreement,

 

25

 

arrangement or understanding
other than on terms no less favorable to the Company or such Subsidiary than
those that might be obtained at the time from Persons that are not Affiliates
of the Company, other than fees payable in the ordinary course of business in
connection with servicing receivables of such entity, and (c) to which
neither the Company nor any Subsidiary of the Company has any obligation to
maintain or preserve such entity’s financial condition or cause such entity to
achieve certain levels of operating results. 
Any such designation by the Board of Managers of the Company shall be
evidenced to the Trustee by filing with the Trustee a certified copy of the
Board Resolution of the Board of Managers of the Company giving effect to such
designation and an officers’ certificate certifying that such designation
complied with the foregoing conditions; provided that Huntsman
Receivables Finance LLC and Huntsman Receivables Finance II LLC shall be deemed
to be a Securitization Entity as of the Issue Date.  Following the Initial Public Equity Offering
of a Huntsman Public Parent, references in the foregoing definition to the “Company”
shall be deemed also to refer to such Huntsman Public Parent.

 

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

 

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

 

26

 

“Specified Venture Capital Stock” means Qualified
Capital Stock of the Company issued to Huntsman Parent Company or a Person who
is not an Affiliate of the Company and the proceeds from the issuance of which
are applied within 180 days after the issuance thereof to an Investment in an
Unrestricted Subsidiary or joint venture.

 

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

 

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

 

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

 

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

 

“Tax Sharing Agreement” means the Tax Sharing
Agreement dated as of August 16, 2005 between the Company and Huntsman
Corporation as in existence on the Issue Date or any amendment thereto or
replacement thereof so long as any such amendment or replacement provisions are
not more disadvantageous to the Holders of Notes in any material respect than
the provisions of the agreement being amended or replaced.

 

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

 

“Total
Assets of Huntsman International” means, as of any determination dates,
the total assets of the Company and its consolidated subsidiaries, as
determined in accordance with GAAP at the end of the most recent fiscal quarter
for which financial statements are available under Section 4.09.

 

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

 

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

 

27

 

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

 

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

 

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

 

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

 

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

 

28

 

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

 

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

 

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

 

“indenture securities” means the Notes.

 

“indenture to be qualified” means this Indenture.

 

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

 

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

 

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

 

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

 

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

 

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

 

(3)           “or” is not
exclusive;

 

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

 

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

 

29

 

ARTICLE
II

 

THE
NOTES

 

Section 2.01           Form and
Dating.

 

The Notes and the certificate of authentication
relating thereto shall be substantially in the form of Exhibit A.  The Notes may have notations, legends or
endorsements required by law, stock exchange rule or usage.  Notes that are Restricted Securities
(including the Initial Notes) shall bear the Private Placement Legend.  Each Note shall be dated the date of issuance
and shall show the date of its authentication. 
Each Note shall have an executed Guarantee from each of the Guarantors
endorsed thereon substantially in the form of Exhibit E hereto.

 

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

 

(a)           Restricted Global Securities.

 

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

 

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

 

(b)           Regulation S Global Securities.

 

(i)      Notes offered and sold in
offshore transactions in reliance on Regulation S shall be issued in the form
of one or more Restricted Global Securities (the “Regulation S Global Security”)
deposited with the custodian for the Depositary, and registered in the name of
the Depositary or its nominee, duly executed by the Company and authenticated
by the Trustee as hereinafter provided. 
Any resale or transfer of beneficial interests in the Regulation S
Global Security shall be made only pursuant to Rule 144A or Regulation S
or another exemption from the Registration requirements of the Securities Act,
after delivery to the Company by the transferor, if required by the Company, of
the opinions, certification or other information described in Section 2.17.  The aggregate principal amount of the
Regulation S Global Security as may from time to time be increased

 

30

 

or
decreased by adjustments made in the records of the Trustee, as custodian for
the Depositary or its nominee, as herein provided.

 

(c)           Physical Notes. 
Notes issued in exchange for interests in a Global Note pursuant to Section 2.15
may be issued in the form of permanent certificated Notes in registered form in
substantially the form set forth in Exhibit A (the “Physical Notes”).

 

Section 2.02           Execution
and Authentication; Aggregate Principal Amount.

 

A duly authorized Officer of the Company shall
execute the Notes for the Company, and a duly authorized officer of each
Guarantor shall sign the Guarantees for the Guarantors, in each case by manual
or facsimile signature.

 

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

 

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

 

On the Issue Date, upon Company Order the Trustee
shall authenticate and deliver Notes for original issue in an aggregate
principal amount not to exceed $350,000,000. 
In addition, at any time, from time to time, the Trustee shall
authenticate and deliver Exchange Notes in the form of Unrestricted Notes, upon
a Company Order for original issuance in the aggregate principal amount
specified in such order for original issue in the aggregate principal amount,
provided that Exchange Notes shall be issuable only upon the valid surrender
for cancellation of Global Securities or other Notes of a like aggregate
principal amount.  Additional Notes may
be issued in accordance with Sections 2.01 and 2.18.  Any such Company Order may specify the amount
of the Notes to be authenticated and the date on which the original issue of
Notes is to be authenticated, whether such Notes are Unrestricted Notes and
whether (subject to Section 2.01) the Notes are to be issued as Physical
Notes or Global Notes and such other information as the Trustee may reasonably
request and, in the case of an issuance of Additional Notes pursuant to Section 2.18
after the Issue Date, shall certify in an Officers’ Certificate that such
issuance will not be prohibited by Section 4.12.

 

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

 

The Notes shall be issuable in fully registered form
only, without coupons, in minimum denominations of $2,000 and integral
multiples of $1,000 in excess thereof.

 

31

 

Section 2.03           Registrar
and Paying Agent.

 

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

 

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

 

The Company initially appoints the Trustee as
Registrar and Paying Agent for the Notes, until such time as such entity has
resigned or a successor has been appointed. 
Any of the Registrar, the Paying Agent or any other agent may resign
upon 30 days’ notice to the Company.

 

Section 2.04           Paying
Agent To Hold Assets in Trust.

 

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

 

Section 2.05           Holder
Lists.

 

The Trustee shall preserve in as current a form as
is reasonably practicable the most recent list available to it of the names and
addresses of the Holders and shall otherwise comply with TIA §312(a).  If the Trustee is not the Registrar or Paying
Agent, the Company shall furnish to the Trustee annually on each March 17
and at such other times as the Trustee may request in writing a list in such
form as the Trustee may reasonably require of the names and addresses of the
Holders, which list may be conclusively relied upon by the Trustee.

 

32

 

Section 2.06           Transfer
and Exchange.

 

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

 

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

 

Section 2.07           Replacement
Notes.

 

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

 

Section 2.08           Outstanding
Notes.

 

Notes outstanding at any time are all the Notes that
have been authenticated by the Trustee except those cancelled by it or a
Registrar, those delivered to it or a Registrar for cancellation and those
described in this Section as not outstanding.  Subject to Section 2.09, a 

 

33

 

Note does not cease to be
outstanding because the Company or any of its Affiliates holds the Note.

 

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

 

If on a Redemption Date or the Maturity Date, the
Paying Agent holds immediately available funds sufficient to pay all of the
principal, premium, if any, and interest due on the Notes payable on that date
and is not prohibited from paying such money to the Holders thereof pursuant to
the terms of this Indenture, then on and after that date such Notes cease to be
outstanding and interest on them ceases to accrue.

 

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

 

Section 2.09           Treasury
Notes.

 

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

 

Section 2.10           [Intentionally
Omitted].

 

Section 2.11           Cancellation.

 

The Company at any time may deliver Notes to the
Trustee for cancellation.  The Registrar
and the Paying Agent shall forward to the Trustee any Notes surrendered to them
for transfer, exchange or payment.  The Trustee,
or at the direction of the Trustee, the Registrar or the Paying Agent, and no
one else, shall cancel and shall dispose all cancelled Securities in accordance
with its customary procedures.  Subject
to Section 2.07, the Company may not issue new Notes to replace Notes that
the Company has paid or delivered to the Trustee for cancellation.  Notes redeemed shall be cancelled.  However, if the Company shall acquire any of
the 

 

34

 

Notes, such acquisition
shall not operate as a redemption or satisfaction of the Indebtedness represented
by such Notes unless and until the same are surrendered to the Trustee for
cancellation pursuant to this Section 2.11.

 

Section 2.12           Defaulted
Interest.

 

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

 

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

 

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

 

Section 2.13           CUSIP
Numbers.

 

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

 

Section 2.14           Deposit
of Moneys.

 

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

 

35

 

 

Section 2.15           Book-Entry
Provisions for Global Securities.

 

Except as indicated below in this Section 2.15,
the Notes shall be represented only by Global Securities.  The Global Securities shall be deposited with
a Depositary for such Notes or its custodian (initially, the Trustee) (and
shall be registered in the name of such Depositary or its nominee).  The Depositary for the Notes shall be DTC
unless the Company appoints a successor Depositary by delivery of a Company
Order to the Trustee specifying such successor Depositary.

 

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

 

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

 

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

 

Interests in a Global Security shall be exchangeable
or transferable, as the case may be, for Physical Notes if (i) DTC
notifies the Company and the Trustee that it is unwilling or unable to continue
as Depositary for such Global Security, or DTC ceases to be a “Clearing Agency”
registered under the United States Securities Exchange Act of 1934, and a successor
depositary is not appointed by the Company, or (ii) an Event of Default
has occurred and is continuing with respect thereto and the Depositary requests
such exchange or transfer.  Upon the occurrence
of any of the events described in the preceding sentence, the Company shall
cause the appropriate Physical Notes to be delivered to the owners of
beneficial interests in the Global Securities or the Participants in DTC
through which such owners hold their beneficial interest.  Physical Notes shall be exchangeable or
transferable for interests in other Physical Notes as described herein.

 

Section 2.16           Transfer
and Exchange of Securities.

 

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

 

36

 

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

 

(ii)     Restricted Global
Security to Regulation S Global Security.  If the Holder of a beneficial interest in a
Restricted Global Security wishes at any time to transfer such interest to a
Person who wishes to take delivery thereof in the form of a beneficial interest
in a Regulation S Global Security, such transfer may be effected, subject to
the rules and procedures of DTC, to the extent applicable (the “Applicable
Procedures”), only in accordance with the provisions of this Section 2.16(a)(ii).  Upon receipt by the Registrar of (A) written
instructions given in accordance with the Applicable Procedures from an Agent
Member directing the Registrar, to credit or cause to be credited to a
specified Agent Member’s account a beneficial interest in a Regulation S Global
Security in a principal amount equal to that of the beneficial interest in a
Restricted Global Security to be so transferred; (B) a written order given
in accordance with the Applicable Procedures containing information regarding
the account of the Agent Member to be credited with, and the account of the
Agent Member to be debited for, such beneficial interest and (C) a
certificate in substantially the form set forth in Exhibit C-1 given by
the Holder of such beneficial interest, the principal amount of a Restricted
Global Security shall be reduced, and the principal amount of a Regulation S
Global Security shall be increased, by the principal amount of the beneficial
interest in a Restricted Global Security to be so transferred, in each case by
means of an appropriate adjustment on the records of the Registrar, and the
Registrar shall instruct DTC or its authorized representative to make a
corresponding adjustment to its records and to credit or cause to be credited
to the account of the Person specified in such instructions a beneficial
interest in a Regulation S Global Security having a principal amount equal to
the amount so transferred.

 

(iii)    Restricted Global
Security to Unrestricted Global Security. 
If the Holder of a beneficial interest in a Restricted Global Security
wishes at any time to transfer such interest to a Person who wishes to take
delivery thereof in the form of a beneficial interest in an Unrestricted Global
Security, such transfer may be effected, subject to the Applicable Procedures,
only in accordance with this Section 2.16(a)(iii).  Upon receipt by the Registrar, of (A) written
instructions given in accordance with the Applicable Procedures from an Agent
Member directing the Registrar to credit or cause to be credited to a specified
Agent Member’s account a beneficial interest in an Unrestricted Global Security
in a principal amount equal to that of the beneficial interest in a Restricted
Global Security to be so transferred, (B) a written order given in
accordance with the Applicable Procedures containing information regarding the
account of the Agent Member  to be
credited with, and the account of the Agent Member to be debited for, such
beneficial interest and (C) a certificate in substantially the form set
forth in Exhibit

 

37

 

C-2
given by the Holder of such beneficial interest, the principal amount of the
Restricted Global Security shall be reduced, and the principal amount of an
Unrestricted Global Security shall be increased, by the principal amount of the
beneficial interest in a Restricted Global Security to be so transferred, in
each case by means of an appropriate adjustment on the records of the Registrar
and the Registrar shall instruct DTC or its authorized representative to make a
corresponding adjustment to its records and to credit or cause to be credited
to the account of the Person specified in such instructions a beneficial
interest in an Unrestricted Global Security having a principal amount equal to
the amount so transferred.

 

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

 

(v)     Exchanges of Global
Security for Non-Global Security.  In
the event that a Global Security or any portion thereof is exchanged for securities
other than Global Securities, such other securities may in turn be exchanged
(on transfer or otherwise) for Notes that are not Global Securities or for
beneficial interests in a Global Security (if any is then outstanding) only in
accordance with such procedures, which shall be substantially consistent with
the provisions of clauses (i) through (iv) above and (vi) below
(including the certification requirements intended to insure that transfers and
exchanges of beneficial interests in a Global Security comply with Rule 144A,
Rule 144 or Regulation S, as

 

38

 

the
case may be) and any Applicable Procedures, as may be from time to time adopted
by the Company and the Trustee.

 

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

 

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

 

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

 

(ii)     Transfer to Persons
Other than Depositary. 
Notwithstanding any other provision in this Indenture or the Notes, no
Global Security may be exchanged in whole or in part for Notes registered, and
no transfer of a Global Security in whole or in part may be registered, in the
name of any person other than the Depositary or a nominee thereof unless (A) in
the case of a Global Security, DTC notifies the Company that it is unwilling or
unable to continue as Depositary for such Global Security, or DTC ceases to be
a Clearing Agency registered under the United States Securities Exchange Act of
1934, and a successor to DTC is not appointed by the Company, or (B) in
the case of any Global Security, an Event of Default has occurred and is
continuing with respect thereto and the Depositary requests such exchange or
transfer.  Any Global Security exchanged
pursuant to clause (A) above shall be so exchanged in whole and not in
part and any Global Security exchanged pursuant to clause (B) above may be
exchanged in whole or from time to time in part as directed by DTC.  Any Security issued in exchange for a Global
Security or any portion thereof shall be a Global Security, provided
that any such Security so issued that is registered in the name of a Person
other than the Depositary or a nominee thereof shall not be a Global Security.

 

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

 

39

 

the
Security issuable on such exchange to or upon the order of the Depositary or an
authorized representative thereof.

 

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

 

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

 

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

 

Section 2.17           Special
Transfer Provisions.

 

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

 

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

 

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

 

The Registrar shall retain copies of all letters,
notices and other written communications received pursuant to Section 2.15,
2.16 or this Section 2.17 for a period of two years, after

 

40

 

which time such letters,
notices and other written communications shall at the written request of the Company
be delivered to the Company.  The Company
shall have the right to inspect and make copies of all such letters, notices or
other written communications at any reasonable time upon the giving of reasonable
prior written notice to the Registrar.

 

The Trustee shall have no obligation or duty to
monitor, determine or inquire as to compliance with restrictions on transfer
imposed under this Indenture or under applicable law with respect to any
transfer of any interest in any Note (including any transfers between or among
Agent Members or Beneficial Owners of interests in any Global Note) other than
to require delivery of such certificates and other documentation or evidence as
are expressly required by, and to do so if and when expressly required by the
terms of, this Indenture, and to examine the same to determine substantial
compliance as to form with the express requirements hereof.

 

Section 2.18           Issuance of Additional Notes.

 

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

 

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

 

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

 

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

 

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

 

ARTICLE
III

 

REDEMPTION

 

Section 3.01           [Intentionally
Omitted].

 

Section 3.02           Selection
of Notes To Be Redeemed.

 

If less than all the Notes are to be redeemed at any
time, selection of such Notes for redemption will be made by the Trustee in
compliance with the requirements of the principal national securities exchange,
if any, on which such Notes are listed or, if such Notes are not 

 

41

 

listed on a national
securities exchange, on a pro rata basis, by lot or by such method as the Trustee
shall deem fair and appropriate; provided, however, that no Notes of a
principal amount of $2,000 or less shall be redeemed in part.

 

Section 3.03           Notice
of Redemption.

 

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

 

(1)           the Redemption Date;

 

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

 

(3)           the paragraph of the
Notes, pursuant to which the Notes are being redeemed;

 

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

 

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

 

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

 

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

 

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

 

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

 

42

 

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

 

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

 

Section 3.04           Effect
of Notice of Redemption.

 

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

 

Section 3.05           Deposit
of Redemption Price.

 

Prior to 11:00am New York City time on the
Redemption Date, the Company shall deposit with the Paying Agent in immediately
available funds money sufficient to pay the Redemption Price, due on such
Redemption Date.  The Paying Agent shall
promptly return to the Company any money so deposited that is not required for
that purpose, except with respect to monies owed as obligations to the Trustee
pursuant to Article Seven.

 

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

 

Section 3.06           Notes
Redeemed in Part.

 

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

 

ARTICLE
IV

 

COVENANTS

 

Section 4.01           Payment
of Notes.

 

The Company shall pay the interest on the Notes on
the dates and in the manner provided in the Notes.  An installment of principal of or interest on
the Notes shall be considered paid on the date it is due if the Trustee or
Paying Agent holds on that date immediately available 

 

43

 

funds designated for and
sufficient to pay the installment. 
Interest on the Notes will be computed on the basis of a 360- day year
comprised of twelve 30-day months.

 

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

 

Section 4.02           Maintenance
of Office or Agency.

 

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

 

Section 4.03           Limitation
on Restricted Payments.

 

The Company shall not, and shall not cause or permit
any of its Restricted Subsidiaries to, directly or indirectly, make any
Restricted Payment if at the time of such Restricted Payment or immediately
after giving effect thereto, (i) a Default or an Event of Default shall
have occurred and be continuing, (ii) the Company is not able to incur at
least $1.00 of additional Indebtedness other than Permitted Indebtedness in
compliance with Section 4.12, or (iii) the aggregate amount of
Restricted Payments including such proposed Restricted Payment made after January 1,
2010, including, the Fair Market Value as determined reasonably and in good
faith by the Board of Managers of the Company) of non-cash amounts constituting
Restricted Payments shall exceed the sum of: 
(w) 50% of the cumulative Consolidated Net Income (or if cumulative
Consolidated Net Income shall be a loss, minus 100% of such loss) of the
Company earned from January 1, 2010 through the last day of the last full
fiscal quarter immediately preceding the date the Restricted Payment occurs
(the “Reference Date”) (treating such period as a single accounting period);
plus (x) 100% of the aggregate net proceeds received by the Company from
any Person (other than a Subsidiary of the Company) from the issuance and sale
subsequent to January 1, 2010 of Qualified Capital Stock of the Company
(other than Specified Venture Capital Stock) or debt securities of the Company
that are, upon issuance, convertible into or exchangeable for Qualified Capital
Stock of the Company, but only when and to the extent such debt securities are
converted into or exchanged for Qualified Capital Stock of the Company; plus (y) without
duplication of any amounts included in clause (iii)(x) above, 100% of the
aggregate net proceeds of any equity contribution received by the Company from
a holder of the Company’s Capital Stock subsequent to January 1, 2010;
plus (z) $100 million.

 

Notwithstanding the foregoing, the provisions set
forth in the immediately preceding paragraph shall not prohibit:  (1) the payment of any dividend within
60 days after the date of declaration of such dividend if the dividend would
have been permitted on the date of declaration; (2) the acquisition of any
shares of Capital Stock of the Company, either (i) solely in exchange for
shares of Qualified Capital Stock of the Company or (ii) if no Default or
Event of Default shall have occurred and be continuing, through the application
of net cash proceeds of a 

 

44

 

substantially concurrent
Equity Offering (other than to a Subsidiary of the Company); (3) the acquisition
or repayment of any Indebtedness of the Company that is subordinate or junior
in right of payment to the Notes either (i) solely in exchange for shares
of Qualified Capital Stock of the Company, or (ii) if no Default or Event
of Default shall have occurred and be continuing, through the application of
net cash proceeds of (A) a substantially concurrent Equity Offering or (B) incurrence
for cash of Refinancing Indebtedness, (in the case of (A) or (B), other
than to a Subsidiary of the Company); (4) so long as no Default or Event
of Default shall have occurred and be continuing, repurchases by the Company
of, or dividends to a Huntsman Parent Company to permit repurchases by a
Huntsman Parent Company of, Common Stock of the Company or a Huntsman Parent
Company from employees of the Company or any of its Subsidiaries or their
authorized representatives upon the death, disability or termination of
employment of such employees, in an aggregate amount not to exceed $25 million
in any calendar year; (5) the redemption or repurchase of any Common Stock
of the Company held by a Restricted Subsidiary of the Company which obtained
such Common Stock directly from the Company; (6) distributions to any Huntsman
Parent Company in accordance with the Tax Sharing Agreement; (7) payments
to any Huntsman Parent Company for legal, audit and other expenses directly
relating to the administration of such Huntsman Parent Company not to exceed
$10.0 million in any fiscal year; (8) the payment of consideration by a
third party to equity holders of the Company; (9) additional Restricted
Payments in an aggregate amount not to exceed $325 million since the Issue
Date; (10) the payment of dividends or distributions to any Huntsman
Parent Company which are contemporaneously applied to pay dividends on common
stock of the Huntsman Public Parent at a rate not to exceed $0.40 per share per
annum (such amount to be appropriately adjusted to reflect any stock split,
reverse stock split, stock dividend, stock issuance or similar transactions
made after the Issue Date so that the aggregate amount of dividends payable
after such transaction is the same as the amount payable immediately prior to
such transaction); (11) payments of dividends on Disqualified Capital
Stock issued in accordance with Section 4.12; and (12) if the
Consolidated Leverage Ratio of the Company, calculated after giving pro forma effect to any repurchase under
this clause (12), is less than 2.5 to 1.0, then the Company may repurchase
or dividend to a Huntsman Parent Company to repurchase, up to an aggregate of
$250 million of Common Stock of a Huntsman Parent Company.  In determining the aggregate amount of Restricted
Payments made subsequent to the Issue Date in accordance with clause (iii) of
the immediately preceding paragraph, cash amounts expended pursuant to clauses
(1), (2), (3)(ii)(A) and (4) above shall be included in such calculation
and Restricted Payments made pursuant to the other clauses of this paragraph
shall not be so included.

 

Not later than the date of making any Restricted
Payment pursuant to clause (iii) of the second preceding paragraph or
clause (9) of the immediately preceding paragraph, the Company shall
deliver to the Trustee an Officers’ Certificate stating that such Restricted Payment
complies with this Indenture and setting forth in reasonable detail the basis
upon which the required calculations were computed, which calculations may be
based upon the Company’s quarterly financial statements last provided to the
Trustee pursuant to Section 4.09.

 

Section 4.04           Corporate
Existence.

 

Except as otherwise permitted by Article Five,
the Company shall do or cause to be done all things reasonably necessary to
preserve and keep in full force and effect its corporate

 

45

 

 

or other existence and the
corporate or other existence of each of its Restricted Subsidiaries in
accordance with the respective organizational documents of each such Restricted
Subsidiary and the material rights (charter and statutory) and franchises of the
Company and each such Restricted Subsidiary; except for such noncompliances as
are not in the aggregate reasonably likely to have a material adverse effect on
the financial condition or results of operations of the Company and its Restricted
Subsidiaries taken as a whole.

 

Section 4.05           Payment of
Taxes and Other Claims.

 

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

 

Section 4.06           Maintenance of
Properties and Insurance.

 

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

 

(b)           The Company shall provide or
cause to be provided, for itself and each of its Restricted Subsidiaries,
insurance (including appropriate self- insurance) against loss or damage of the
kinds that, in the reasonable, good faith opinion of the Company, are
reasonably adequate and appropriate for the conduct of the business of the
Company and such Restricted Subsidiaries.

 

Section 4.07           Compliance
Certificate; Notice of Default.

 

(a)           The Company shall deliver to
the Trustee, within 120 days after the end of each of the Company’s fiscal
years commencing with the fiscal year ending December 31, 2010, an
Officers’ Certificate stating that a review of its activities and the
activities of its Restricted Subsidiaries during the preceding fiscal year has
been made under the supervision of the signing Officers with a view to
determining whether it has kept, observed, performed and fulfilled its
obligations under this Indenture and further stating, as to each such officer
signing such certificate, 

 

46

 

that to the best of his knowledge at the date
of such certificate there is no Default or Event of Default that has occurred
and is continuing or, if such signers do know of such Default or Event of
Default, the certificate shall describe the Default or Event of Default and its
status with particularity.  The Officers’
Certificate shall also notify the Trustee should the Company elect to change
the manner in which it fixes its fiscal year end.

 

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

 

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

 

Section 4.08           Compliance with
Laws.

 

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

 

Section 4.09           Reports to
Holders.

 

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

 

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

 

47

 

on
the annual financial statements by the Company’s certified independent accountants;
and

 

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

 

Notwithstanding the foregoing, the Company
shall not be required to furnish any information or reports that are separate
from information or reports furnished by Huntsman Corporation, and the
requirements specified in this paragraph shall be deemed to be satisfied upon
Huntsman Corporation’s filing of its required reports within the time periods
specified in the Commission’s rules and regulations including any
extension periods available under such rules and regulations, in each case
provided that the assets, liabilities, revenues and net income of Huntsman
Corporation are substantially similar to those of the Company at the time of
such filing.

 

If the Company has designated as an Unrestricted
Subsidiary any of its Subsidiaries that would constitute a significant
subsidiary within the meaning of Regulation S-X under the Exchange Act, then
the quarterly and annual financial information required by the preceding
paragraph shall include a reasonably detailed presentation, either on the face
of the financial statements or in the footnotes or schedules thereto, or in
Narrative Analysis of Results of Operations, of the financial condition and
results of operations of the Company and its Restricted Subsidiaries separate
from the financial condition and results of operations of the Unrestricted Subsidiaries
of the Company.

 

In the event that any Huntsman Parent Company
becomes a Guarantor of the Notes, the Company may satisfy its obligations under
this Section 4.09 with respect to financial information relating to the
Company by furnishing financial information relating to such Huntsman Parent
Company as provided in Section 3-10 of Regulation S-X under the Exchange
Act.

 

The Trustee shall have no responsibility whatsoever
to determine if any such filings have taken place, provided, however,
that the Company shall promptly notify the Trustee in writing whenever it shall
have made such filings with the Commission. 
Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from the information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates).

 

Section 4.10           Waiver of Stay,
Extension or Usury Laws.

 

The Company covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay or
extension law or any usury law or other law that would prohibit or forgive the
Company from paying all or any portion of the principal of, premium or interest
on the Notes as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the obligations or the performance of
this Indenture; and (to the extent that it may lawfully do so) the Company
hereby expressly waives all benefit or advantage of any such law, and covenants

 

48

 

that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
had been enacted.

 

Section 4.11           Limitations on
Transactions with Affiliates.

 

(a)           The Company will not, and
will not permit any of its Restricted Subsidiaries to, directly or indirectly,
enter into or permit to exist any transaction or series of related transactions
with, or for the benefit of, any of its Affiliates (each an “Affiliate
Transaction”), other than (x) Affiliate Transactions permitted under
paragraph (b) below and (y) Affiliate Transactions on terms that are
no less favorable to the Company or the relevant Restricted Subsidiary than
those terms that might reasonably have been obtained in a comparable
transaction at such time on an arm’s-length basis by the Company or the
relevant Restricted Subsidiary and an unrelated Person.  The Board of Managers of the Company or the
Board of Managers of the relevant Restricted Subsidiary must approve each
Affiliate Transaction to which they are a party that involves aggregate
payments or other property with a Fair Market Value in excess of $25.0 million.  This approval must be evidenced by a Board
Resolution that states that the applicable Board of Managers has determined
that the transaction complies with the foregoing provisions.  If the Company or any Restricted Subsidiary
of the Company enters into an Affiliate Transaction that involves an aggregate
Fair Market Value of more than $50.0 million, then prior to the consummation of
the Affiliate Transaction, the parties to such Affiliate Transaction must obtain
a favorable opinion as to the fairness of such transaction or series of related
transactions to the Company or the relevant Restricted Subsidiary, as the case
may be, from a financial point of view, from an Independent Financial Advisor
and file the same with the Trustee.

 

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

 

49

 

Section 4.12           Limitation on
Incurrence of Additional Indebtedness.

 

The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, assume,
guarantee, acquire, become liable, contingently or otherwise, with respect to,
or otherwise become responsible for payment of (collectively, “incur”) any
Indebtedness (other than Permitted Indebtedness); provided, however, if no
Default or Event of Default shall have occurred and be continuing at the time
of or as a consequence of the incurrence of any such Indebtedness, the Company and
its Restricted Subsidiaries may incur Indebtedness (including Acquired
Indebtedness) in each case if on the date of the incurrence of such Indebtedness,
after giving effect to the incurrence thereof, the Consolidated Fixed Charge
Coverage Ratio of the Company is greater than 2.0 to 1.0.

 

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

 

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

 

50

 

of a Foreign Subsidiary
permitted under Section 4.12; (13) customary restrictions in Capitalized
Lease Obligations, security agreements or mortgages securing Indebtedness of
the Company or a Restricted Subsidiary to the extent such restrictions restrict
the transfer of the property subject to such Capitalized Lease Obligations,
security agreements or mortgages; (14) customary provisions in joint venture
agreements and other similar agreements (in each case relating solely to the
respective joint venture or similar entity or the equity interests therein) entered
into in the ordinary course of business; (15) contracts entered into in the
ordinary course of business, not relating to Indebtedness, and that do not,
individually or in the aggregate, detract from the value of property or assets
of the Company or any Restricted Subsidiary in any manner material to the
Company or any Restricted Subsidiary; and (16) an agreement governing Indebtedness
incurred to Refinance the Indebtedness issued, assumed or incurred pursuant to
an agreement referred to in clause (2), (4), (5), (8), (11), (12) or (13)
above; provided, however, that the provisions relating to such encumbrance or
restriction contained in any such Indebtedness are no less favorable to the
Company in any material respect as determined by the Board of Managers of the
Company in their reasonable and good faith judgment than the provisions
relating to such encumbrance or restriction contained in agreements referred to
in such clause (2), (4), (5), (8), (11), (12) or (13).

 

Section 4.14           Change of
Control.

 

(a)           Upon the occurrence of a
Change of Control, each Holder will have the right to require that the Company
purchase all or a portion (equal to $2,000 and integral multiples of $1,000 in
excess thereof) of such Holder’s Notes in cash pursuant to the offer described
below (the “Change of Control Offer”), at a purchase price equal to 101% of the
principal amount thereof plus accrued and unpaid interest, if any, to the date
of purchase.

 

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

 

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

 

51

 

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

 

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

 

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

 

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

 

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

 

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

 

(7)           that Holders whose Notes are
purchased only in part will be issued new Notes in a principal amount equal to
the unpurchased portion of the Notes surrendered; provided, however,
that each Note purchased and each new Note issued shall be in a principal
amount of $2,000 and integral multiples of $1,000 in excess thereof; and

 

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

 

(d)           On or before the Change of
Control Payment Date, the Company shall (i) accept for payment Notes or
portions thereof (equal to $2,000 and integral multiples of $1,000 in excess
thereof) validly tendered pursuant to the Change of Control Offer, (ii) deposit
with the Paying Agent in accordance with Section 2.14 immediately
available funds sufficient to pay the purchase price plus accrued and unpaid
interest, if any, of all Notes to be purchased and (iii) deliver to the
Trustee Notes so accepted together with an Officers’ Certificate stating the
Notes or portions thereof being purchased by the Company.  Upon receipt by the Paying Agent of the
monies specified in clause (ii) above and a copy of the Officers’
Certificate specified in clause (iii) above, the Paying Agent shall
promptly pay to the Holders of Notes so accepted payment in an amount equal to
the purchase price plus accrued and unpaid interest, if any, out of the funds
deposited with the Paying Agent in accordance with the preceding sentence.  The Trustee shall promptly authenticate and
mail or cause to be transferred by book-entry to such Holders new 

 

52

 

Notes equal in principal amount to any
unpurchased portion of the Notes surrendered, provided that each such new Note
will be in a principal amount of $2,000 or integral multiples of $1,000 in
excess thereof.  Upon the payment of the
purchase price for the Notes accepted for purchase, the Trustee shall cancel
such Notes in accordance with its customary procedures.  Any monies remaining after the purchase of
Notes pursuant to a Change of Control Offer shall be returned within three
Business Days by the Trustee to the Company except with respect to monies owed
as obligations to the Trustee pursuant to Article Seven.  For purposes of this Section 4.14, the
Trustee shall act as the Paying Agent for the Notes.

 

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

 

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

 

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

 

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

 

(b)           at least 75%
(or, in the case of an Asset Sale consisting of assets used or useful in a
business similar or related to the Pigments business of the Company and its
Subsidiaries, 65%) of the consideration received by the Company or the
applicable Restricted Subsidiary from such Asset Sale shall be in the form of
cash or Cash Equivalents, and is received at the time of the Asset Sale (which
shall be deemed to include other consideration converted to cash or Cash
Equivalents within 90 days of such Asset Sale). 
For the purposes of this provision, the amount of any liabilities shown
on the most recent applicable balance sheet of the Company or the applicable
Restricted Subsidiary, other than liabilities that are by their terms
subordinated to the Notes, that are assumed by the transferee of any such
assets will be deemed to be cash for purposes of this provision.

 

(c)           Upon the
consummation of an Asset Sale, the Company may apply, or cause such applicable
Restricted Subsidiary to apply, the Net Cash Proceeds relating to such Asset
Sale within 415 days of having received the Net Cash Proceeds:

 

53

 

(i)            to prepay any
Senior Debt, Guarantor Senior Debt or Indebtedness of a Restricted Subsidiary
that is not a Guarantor and, in the case of any such Indebtedness under any
revolving credit facility, effect a permanent reduction in the availability
under such revolving credit facility; and/or

 

(ii)           to prepay any
Pari Passu Indebtedness of the Company, and, in the case of any such
Indebtedness under any revolving credit facility, effect a permanent reduction
in the availability under such revolving credit facility; and/or to

 

(iii)          make an
investment in or expenditures for properties and assets (including Capital
Stock of any entity) that replace the properties and assets that were the
subject of the Asset Sale or in properties and assets (including Capital Stock
of any entity) that will be used in the business of the Company and its Subsidiaries
as existing on the Issue Date or in businesses reasonably related thereto
(“Replacement Assets”); and/or

 

(iv)          make an
acquisition of all of the capital stock or assets of any Person or division
conducting a business reasonably related to that of the Company or its Subsidiaries.

 

On
the 416th day after an Asset Sale or any earlier date, if any, on which the
Board of Managers of the Company or of the applicable Restricted Subsidiary determines
not to apply the Net Cash Proceeds in accordance with the above provisions of
this clause (c) (each, a “Net Proceeds Offer Trigger Date”), such
aggregate amount of Net Cash Proceeds which have not been applied or
contractually committed to be applied (and to the extent not subsequently
applied, the Net Proceeds Offer Trigger Date related thereto shall be deemed to
be the date of termination of such contractual commitment or any earlier date,
if any, on which the Board of Managers of the Company or the board of the
applicable Restricted Subsidiary determines not to apply the Net Cash Proceeds
in accordance with such contractual commitment) on or before such Net Proceeds
Offer Trigger Date as permitted by the above provisions of this clause (c) (the
“Net Proceeds Offer Amount”) shall be applied by the Company or such Restricted
Subsidiary to make an offer to purchase (or repay, prepay or redeem, as the
case may be) (the “Net Proceeds Offer”) on a date (the “Net Proceeds Offer
Payment Date”) that is not less than 30 nor more than 45 days following the
applicable Net Proceeds Offer Trigger Date, from all Holders and all holders of
Indebtedness that is equal in right of payment with the Notes and contains
provisions requiring that an offer to purchase such other Indebtedness be made
with the proceeds of the Asset Sale, on a pro rata basis, the maximum principal
amount of Notes and other Indebtedness that may be purchased with the Net
Proceeds Offer Amount.  Notwithstanding
the foregoing, the obligation to make a Net Proceeds Offer shall be suspended
until such time as the aggregate amount of the Net Proceeds Offer Amount is
equal to or exceeds $75 million.  The
offer price in any Net Proceeds Offer will be equal to 100% of the principal
value of the Notes to be purchased, plus any accrued and unpaid interest to the
date of purchase.

 

54

 

The
following events will be deemed to constitute an Asset Sale and the Net Cash
Proceeds for such Asset Sale must be applied in accordance with this section
4.15:

 

·      in the event
any non-cash consideration received by the Company or any Restricted Subsidiary
of the Company in connection with any Asset Sale is converted into or sold or
otherwise disposed of for cash (other than interest received with respect to
any such non-cash consideration), or

 

·      in the event of
the transfer of substantially all (but not all) of the property and assets of
the Company and its Restricted Subsidiaries as an entirety to a Person in a
transaction permitted under Section 5.01 and as a result thereof the Company
is no longer an obligor on the Notes, the successor corporation shall be deemed
to have sold the properties and assets of the Company and its Restricted
Subsidiaries not so transferred for purposes of this Section 4.15, and
shall comply with the provisions of this covenant with respect to such deemed
sale as if it were an Asset Sale.  In
addition, the Fair Market Value of such properties and assets of the Company or
its Restricted Subsidiaries deemed to be sold shall be deemed to be Net Cash
Proceeds for purposes of this Section 4.15.

 

Notwithstanding
the provisions described in the immediately preceding paragraphs, the Company
and its Restricted Subsidiaries may consummate an Asset Sale without complying
with such paragraphs to the extent (i) at least 75% of the consideration
for such Asset Sale constitutes Replacement Assets and (ii) such Asset
Sale is for Fair Market Value.  Any
consideration that does not constitute Replacement Assets that is received by
the Company or any of its Restricted Subsidiaries in connection with any Asset
Sale permitted under this paragraph shall constitute Net Cash Proceeds and will
be subject to the provisions described in the preceding paragraphs.

 

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

 

(1)           that the Net Proceeds Offer
is being made pursuant to Section 4.15 of this Indenture, that all Notes
tendered will be accepted for payment; provided, however, that if
the aggregate principal amount of Notes tendered in a Net Proceeds Offer plus
accrued interest at the expiration of such offer exceeds the aggregate amount
of the Net Proceeds Offer, the Trustee, as Registrar shall select the Notes to
be purchased on a pro rata basis (with such adjustments as may be deemed appropriate
by the Company so that only Notes in denominations of $2,000 or multiples in
excess of $1,000 thereof shall be purchased) and that the Net Proceeds Offer
shall remain open for a period of 20 Business Days or such longer periods as
may be required by law;

 

55

 

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

 

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

 

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

 

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

 

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

 

(7)           that Holders whose Notes are
purchased only in part will be issued new Notes in a principal amount equal to
the unpurchased portion of the Note surrendered; provided, however,
that each new Note issued shall be in an original principal amount of $1,000; provided,
further, however, that no Note of $2,000 or less may remain
outstanding.

 

On or before the Net Proceeds Offer Payment Date,
the Company shall (i) accept for payment Notes or portions thereof (in
integral multiples of $1,000; provided, that no Note of $2,000 or less
may remain outstanding thereafter) validly tendered pursuant to the Net
Proceeds Offer, (ii) deposit with the Paying Agent, in accordance with Section 2.14,
immediately available funds (sufficient to pay the purchase price plus accrued
and unpaid interest, if any, of all Notes to be purchased and (iii) deliver
to the Trustee Notes so accepted together with an Officers’ Certificate stating
the Notes or portions thereof being purchased by the Company.  Upon receipt by the Paying Agent of the
monies specified in clause (ii) above and a copy of the Officers’ Certificate
specified in clause (iii) above, the Paying Agent shall promptly pay to
the Holders of Notes so accepted payment in an amount equal to the purchase
price plus accrued and unpaid interest, if any, out of the funds deposited with
the Paying Agent in accordance with the preceding sentence.  The Trustee shall promptly authenticate and
mail to such Holders new Notes equal in principal amount to any unpurchased portion
of the Notes surrendered.  Upon the
payment of the purchase price for the Notes accepted for purchase, the Trustee
shall cancel such Notes pursuant to Section 

 

56

 

2.11 of this Indenture.  Any monies remaining after the purchase of
Notes pursuant to a Net Proceeds Offer shall be returned within three Business
Days by the Trustee to the Company except with respect to monies owed as
obligations to the Trustee pursuant to Article Seven.  For purposes of this Section 4.15, the
Trustee shall act as the Paying Agent for the Notes.

 

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

 

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

 

Section 4.16           Prohibition on
Incurrence of Senior Subordinated Debt.

 

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

 

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

 

Section 4.17           Limitation on
Preferred Stock of Restricted Subsidiaries.

 

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

 

Section 4.18           Limitation on
Liens.

 

The Company shall not, and shall not permit any of
its Restricted Subsidiaries to create, incur, or otherwise cause or suffer to
exist or become effective any Liens of any kind 

 

57

 

upon any property or assets
of the Company or any Restricted Subsidiary now owned or hereafter acquired,
which secures Pari Passu Indebtedness or Indebtedness subordinated to the Notes
unless such Indebtedness is incurred in accordance with this Indenture and (i) if
such Lien secures Pari Passu Indebtedness of the Company, then the Notes are
secured on an equal and ratable basis with the obligations so secured until
such time as such obligation is no longer secured by a Lien or (ii) if
such Lien secures Indebtedness which is subordinated to the Notes, any such
Lien shall be subordinated to a Lien granted to the Holders in the same
collateral as that securing such Lien to the same extent as such subordinated
Indebtedness is subordinated to the Notes.

 

Section 4.19           Limitation of
Guarantees by Restricted Subsidiaries.

 

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

 

Section 4.20           Conduct of
Business.

 

The Company and its Restricted Subsidiaries (other
than a Securitization Entity) will not engage in any businesses which are not
the same, similar or related to the businesses in which the Company and its
Restricted Subsidiaries were engaged on the Issue Date, except to the extent
that after engaging in any new business, the Company and its Restricted
Subsidiaries, taken as a whole, remain substantially engaged in similar lines
of business as were conducted by them on the Issue Date.

 

Section 4.21           Covenant
Termination.

 

After such time as (i) the Notes have been
assigned an Investment Grade Rating by either Rating Agency (the “Investment
Grade Rating Date”) and (ii) no Default or Event of Default under this
Indenture shall have occurred and be continuing, and notwithstanding that the
Notes may later cease to have an Investment Grade Rating by any Rating Agency,
the Company and its Restricted Subsidiaries shall no longer be subject to the
following sections:  Section 4.03, Section 4.11,
Section 4.12, Section 4.13, Section 4.15, Section 4.16, Section 4.17,
Section 4.19, 

 

58

 

Section 4.20 and Section 5.01(a)(iii) or
(c)(iii).  Notice of such covenant
termination shall be provided in writing to the Trustee.

 

ARTICLE
V

SUCCESSOR
CORPORATION

 

Section 5.01           Merger,
Consolidation and Sale of Assets.

 

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

 

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

 

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

 

(iii)          immediately
after giving effect to such transaction either (a) the Company or the
Surviving Entity shall be able to incur at least $1.00 of additional Indebtedness
(other than Permitted Indebtedness) pursuant to Section 4.12 or (b) the
Consolidated Fixed Charge Coverage Ratio of the Company or the Surviving Entity
would be greater than the Consolidated Fixed Charge Coverage Ratio of the
Company determined immediately prior to such transaction;

 

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

 

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

 

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

 

(c)           Each Guarantor (other than
any Guarantor whose Guarantee is to be released in accordance with the terms of
the Guarantee and this Indenture in connection with any 

 

59

 

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

 

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

 

Section 5.02           Successor
Corporation Substituted.

 

Upon any consolidation, combination or merger, or
any transfer of all or substantially all of the assets of the Company in
accordance with Section 5.01 in which the Company is not the Surviving
Entity, the successor Person formed by such consolidation or into which the
Company is merged or to which such conveyance, lease or transfer is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture and the Notes with the same effect as if such
Surviving Entity had been named as such.

 

ARTICLE
VI

DEFAULT
AND REMEDIES

 

Section 6.01           Events of
Default.

 

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

 

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

 

(2)           the failure to
pay principal on any Notes, when such principal becomes due and payable, at
maturity, upon redemption or otherwise (including the failure to make a payment
when due to purchase the Notes tendered pursuant to a Change of 

 

60

 

Control
Offer or a Net Proceeds Offer) (whether or not such payment shall be prohibited
by the subordination provisions described under Article Ten);

 

(3)           the failure of
the Company or any Guarantor to comply with any covenant or agreement contained
in this Indenture, which default continues for a period of 60 days after the
Company receives a written notice specifying the default (or 120 days after
such a notice in the event of a Default under Section 4.09) (and demanding
that such default be remedied) from the Trustee or the Holders of at least 25%
of the outstanding principal amount of the Notes (including any Additional
Notes subsequently issued under this Indenture) (except in the case of a
default with respect to Section 5.01, which will constitute an Event of
Default with such notice requirement but without such passage of time requirement);

 

(4)           the occurrence
of any default under any agreement governing Indebtedness of the Company or any
of its Restricted Subsidiaries, if that default:  (A) is caused by the failure to pay at
final maturity the principal amount of any Indebtedness after giving effect to
any applicable grace periods and any extensions of time for payment of such
Indebtedness; or (B) results in
the acceleration of the final stated maturity of any such Indebtedness, and
in each case if the aggregate principal amount of such Indebtedness unpaid or
accelerated aggregates $100.0 million or more at any time and such Indebtedness
has not been discharged in full or such acceleration has not been rescinded or
annulled within 30 days of such final maturity or acceleration;

 

(5)           the failure of
the Company or any of the Guarantors to pay or otherwise discharge or stay one
or more judgments in an aggregate amount exceeding $100.0 million (which are
not covered by indemnities or third party insurance as to which the Person
giving such indemnity or such insurer has not disclaimed coverage) for a period
of 60 days after such judgments become final and non-appealable;

 

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

 

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

 

61

 

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

 

Section 6.02           Acceleration.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

62

 

Section 6.03           Other Remedies.

 

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

 

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

 

Section 6.04           Waiver of Past
Defaults.

 

Subject to Sections 6.07 and 9.02, the Holders of a
majority in aggregate principal amount of the Notes (including the aggregate
principal amount of any Additional Notes subsequently issued under this
Indenture) by notice to the Trustee may waive any existing Default or Event of
Default hereunder and its consequences, except a Default in the payment of the
principal of or interest on any Note as specified in clauses (1) and (2) of
Section 6.01; provided that a Default or Event of Default due to
failure to comply with Section 4.09 shall be deemed to be cured upon
filing by the Company (or, if applicable, Huntsman Corporation) of the reports
in compliance with Section 4.09.

 

Section 6.05           Control by
Majority.

 

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

 

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

 

Section 6.06           Limitation on
Suits.

 

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

 

63

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 6.07           Rights of
Holders To Receive Payment.

 

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

 

Section 6.08           Collection Suit
by Trustee.

 

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

 

Section 6.09           Trustee May File
Proofs of Claim.

 

The Trustee may file such proofs of claim and other
papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation,
expenses, taxes, disbursements and advances of the Trustee, its agents and
counsel) and the Holders allowed in any judicial proceedings relating to the
Company or any other obligor upon the Notes, any of their respective creditors
or any of their respective property, and shall be entitled and empowered to
collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same, and any custodian in any such judicial 

 

64

 

proceedings is hereby
authorized by each Holder to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to
the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, taxes, disbursements and advances of the Trustee, its
agents and counsel, and any other amounts due the Trustee under Section 7.07.  The Company’s payment obligations under this Section 6.09
shall be secured in accordance with the provisions of Section 7.07.  Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

 

Section 6.10           Priorities.

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 6.11           Undertaking for
Costs.

 

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

 

65

 

Section 6.12           Expenses and
Services After an Event of Default.

 

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

 

ARTICLE
VII

TRUSTEE

 

Section 7.01           Duties of
Trustee.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

66

 

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

 

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

 

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

 

Section 7.02           Rights of
Trustee.

 

Subject to Section 7.01:

 

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

 

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

 

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

 

(d)           The Trustee
shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate (including any Officers’ Certificate), statement,
instrument, opinion (including any Opinion of Counsel), notice, request,
direction, consent, order, bond, debenture, or other paper or document.

 

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

 

(f)            The Trustee may
consult with counsel of its selection, and the advice or opinion of counsel
with respect to legal matters relating to this Indenture and the Notes shall be
full and complete authorization and protection from liability with respect to
any 

 

67

 

action
taken, omitted or suffered by it hereunder in good faith and in accordance with
the advice or opinion of such counsel.

 

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

 

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

 

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

 

(j)            The Trustee
shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless
written notice of any event which is in fact such a default is received by a
Responsible Officer at the Corporate Trust Office of the Trustee, and such
notice references the Notes and this Indenture.

 

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

 

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

 

(m)          In no event
shall the Trustee be responsible or liable for special, indirect, punitive or
consequential loss or damage of any kind whatsoever (including, but not limited
to, loss of profit) irrespective of whether the Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action.

 

(n)           The Trustee
shall not be responsible for any costs, expenses, damages or other liabilities
arising (directly or indirectly) as a result of (i) any filing of a claim
or proof of debt by holders of Senior Debt or Guarantor Senior Debt (or their
Representative) or (ii) any right of holders of Senior Debt or Guarantor
Senior Debt (or their Representative) to file any such claim or proof of debt,
in any such case in accordance with the second paragraph of Section 10.09
or Section 12.09.

 

68

 

Section 7.03           Individual
Rights of Trustee.

 

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

 

Section 7.04           Trustee’s
Disclaimer.

 

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

 

Section 7.05           Notice of
Default.

 

If a Default or an Event of Default occurs and is
continuing and if a Responsible Officer of the Trustee has actual knowledge of
such Default or Event of Default, the Trustee shall send to each Noteholder
notice of the uncured Default or Event of Default on the later of (i) 60
days after such Default or Event of Default occurs or (ii) 10 days after a
Responsible Officer of the Trustee has actual knowledge of such Default or
Event of Default.  Except in the case of
a Default or an Event of Default in the payment of interest or principal of,
premium or interest on, any Note, including an accelerated payment and the
failure to make payment on the Change of Control Payment Date pursuant to a
Change of Control Offer or on a Net Proceeds Offer Payment Date pursuant to a
Net Proceeds Offer and, except in the case of a failure to comply with Article Five,
the Trustee may withhold the notice if and so long as its Responsible Officer(s) in
good faith determines that withholding the notice is in the interest of the
Holders.  The Trustee shall not be deemed
to have knowledge of a Default or Event of Default other than (i) any
Event of Default occurring pursuant to Sections 6.01(1) or 6.01(2); or (ii) any
Default or Event of Default of which a Responsible Officer shall have received
written notification or obtained actual knowledge.  As used herein, the term “actual knowledge”
means the actual fact or statement of knowing, without any duty to make any
investigation with regard thereto. 
During the existence of an Event of Default, the Trustee will exercise
such rights and powers vested in it by this Indenture, and use the same degree
of care and skill in its exercise as a prudent Person would exercise or use under
the circumstances in the conduct of his own affairs.

 

Section 7.06           Reports by
Trustee to Holders.

 

Within 60 days after April 15 of each year
beginning with April 15, 2011, the Trustee shall, to the extent that any
of the events described in TIA § 313(a) occurred within the previous
twelve months, but not otherwise, mail to each Noteholder a brief report dated
as of such date that complies with TIA § 313(a).  The Trustee also shall comply with TIA § 313(b) and
313(c).

 

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

 

69

 

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

 

Section 7.07           Compensation
and Indemnity.

 

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

 

The Company shall indemnify the Trustee and its
agents, employees, officers, stockholders and directors for, and hold them
harmless against, any loss, liability or expense including taxes (other than
taxes based on the income of the Trustee) and reasonable attorneys’ fees and
expenses incurred by them except for such actions to the extent caused by any
negligence, bad faith or willful misconduct on their part, arising out of or in
connection with the acceptance or administration of this trust including the
reasonable costs and expenses of defending themselves against or investigating
any claim (whether asserted by the Company, and Holder or any other Person) or
liability in connection with the exercise or performance of any of the Trustee’s
rights, powers or duties hereunder.  The
Trustee shall notify the Company promptly of any claim asserted against the
Trustee or any of its agents, employees, officers, stockholders and directors
for which it may seek indemnity.  Failure
by the Company to so notify the Trustee shall not relieve the Company of its
obligations hereunder.  The Company shall
defend the claim and the Trustee shall cooperate in the defense at the Company’s
expense.  The Trustee and its agents,
employees, officers, stockholders and directors subject to the claim may have
separate counsel and the Company shall pay the reasonable fees and expenses of
such counsel; provided, however, that the Company will not be
required to pay such fees and expenses if it assumes the Trustee’s defense and
there is no conflict of interest between the Company and the Trustee and its
agents, employees, officers, stockholders and directors subject to the claim in
connection with such defense as reasonably determined by the Trustee; provided,
further, that, unless the Company otherwise agrees in writing, the
Company shall not be liable to pay the fees and expenses of more than one
counsel at any given time located within one particular jurisdiction.  The Company need not pay for any settlement made
without its written consent which consent shall not be unreasonably
withheld.  The Company need not reimburse
any expense or indemnify against any loss or liability to the extent incurred
by the Trustee through its negligence, bad faith or willful misconduct.

 

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

 

When the Trustee incurs expenses or renders services
after an Event of Default specified in Section 6.01(6) or (7) occurs,
such expenses  (including the reasonable
charges and 

 

70

 

expenses of its counsel) and
the compensation for such services are intended to constitute expenses of administration
and shall be paid to the extent allowed under any Bankruptcy Law.

 

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

 

Section 7.08           Replacement of
Trustee.

 

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

 

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

 

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

 

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

 

(4)           the Trustee
becomes incapable of acting.

 

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

 

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

 

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

 

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

 

71

 

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

 

Section 7.09           Successor Trustee by Merger, Etc.

 

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

 

Section 7.10           Eligibility;
Disqualification.

 

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

 

Section 7.11           Preferential
Collection of Claims Against the Company.

 

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

 

ARTICLE
VIII

DISCHARGE
OF INDENTURE; DEFEASANCE

 

Section 8.01           Termination of the Company’s Obligations.

 

This Indenture will be Discharged and will cease to
be of further effect and the obligations of the Company and the Guarantors
under the Notes and the Guarantees and this Indenture shall terminate (except
that the obligations under Sections 2.03 through 2.07, 7.01, 7.02, 7.07 and
7.08 and the rights, powers, trusts, duties and immunities of the Trustee
hereunder shall survive the effect of this Article Eight) when (a) either
(i) all existing Notes theretofore authenticated and delivered (except
lost, stolen or destroyed Notes which have been replaced or paid and Notes for
whose payment money has theretofore been deposited in trust or segregated and
held in trust by the Company and thereafter repaid to the Company or discharged
from such trust) have been delivered to the Trustee for cancellation or (ii) all
Notes not theretofore delivered to 

 

72

 

the Trustee for cancellation
have become due and payable or will become due and payable within one year
(including by way of irrevocable instructions delivered by the Company to the
Trustee to effect the redemption of the Notes), and the Company has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders of such Notes, cash in U.S. Dollars, U.S.
Government Obligations in amounts as will be sufficient without consideration
of any reinvestment of interest to pay and discharge the entire Indebtedness on
the Notes not theretofore delivered to the Trustee for cancellation, for
principal of, premium, if any, and interest on the Notes to the date of deposit
together with irrevocable instructions from the Company directing the Trustee
to apply such Funds to the payment thereof at maturity or redemption, as the
case may be; (b) the Company has paid all other sums payable under this
Indenture by the Company with respect to the Notes; and (c) the Company
has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel
stating that all conditions precedent under this Indenture relating to the
satisfaction and discharge of this Indenture with respect to the Notes have
been complied with.  All funds that
remain unclaimed for one year will be paid to the Company upon Company Order
and thereafter Holders must look to the Company for payment as general creditors.

 

In addition, at the Company’s option, either (a) the
Company shall be deemed to have been Discharged from any and all obligations
with respect to the Notes and the Guarantees (“Legal Defeasance”) after the
applicable conditions set forth below have been satisfied (except for the obligations
of the Company under Sections 2.03, 2.04, 2.06, 2.07, 7.01, 7.02, 7.07 and this
Section 8.01) or (b) the Company and its Restricted Subsidiaries
shall cease to be under any obligation to comply with any term, provision or
condition set forth in Sections 4.03, 4.09 and 4.11 through 4.20 and Section 5.01
and thereafter any omission to comply with such obligations shall not
constitute a Default or Event of Default with respect to the Notes (“Covenant
Defeasance”) after the applicable conditions set forth below have been
satisfied:

 

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

 

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

 

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

 

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

 

in
either case, to the effect that, and based thereon such Opinion of Counsel
shall confirm that, the Holders of the outstanding Notes will not recognize
income, gain or loss for United States federal income tax purposes as a result
of such Legal Defeasance and will be subject to United States federal income
tax on the same amounts, in the same manner 

 

73

 

and
at the same times as would have been the case if such Legal Defeasance had not
occurred; provided, however, such Opinion of Counsel shall not be required if
all the Notes will become due and payable on the Maturity Date within one year
or are to be called for redemption within one year under arrangements
satisfactory to the Trustee;

 

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

 

(4)           no Event of
Default or Default shall have occurred and be continuing on the date of such
deposit (other than any Default arising from the substantially contemporaneous
incurrence of Indebtedness to fund the deposit described above in clause (1));

 

(5)           such Legal
Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute a default under this Indenture (other than any Default arising
from the substantially contemporaneous incurrence of Indebtedness to fund the
deposit described above in clause (1)) or any other material agreement or
instrument to which the Company or any of its Subsidiaries is a party or by
which the Company or any of its Subsidiaries is bound;

 

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

 

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

 

(8)           the Company
shall have delivered to the Trustee an Opinion of Counsel, to the effect that
either (i) the Company has assigned all its ownership interest in the
trust funds to the Trustee or (ii) the Trustee has a valid perfected
security interest in the trust funds.

 

Section 8.02           Acknowledgment
of Discharge by Trustee.

 

Subject to Section 8.05, after (i) the
conditions of Section 8.01, have been satisfied and (ii) the Company
has delivered to the Trustee an Opinion of Counsel, stating that all conditions
precedent referred to in clause (i) above relating to the satisfaction and
discharge of this Indenture have been complied with, the Trustee upon Company
Order shall acknowledge in 

 

74

 

writing the discharge of the
Company’s obligations under this Indenture except for those surviving obligations
specified in this Article Eight.

 

Section 8.03           Application of
Trust Money.

 

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

 

Section 8.04           Repayment to
the Company.

 

The Trustee and the Paying Agent shall upon Company
Order pay to the Company any Funds held by them for the payment of all the
principal of, or premium, if any, and interest that remains unclaimed for one
year; provided, however, that the Trustee or such Paying Agent
may, at the expense of the Company, cause to be published once in a newspaper
of general circulation in the City of New York or mailed to each Holder, notice
that such Funds remain unclaimed and that, after a date specified therein,
which shall not be less than 30 days from the date of such publication or
mailing, any unclaimed balance of such Funds then remaining will be repaid to
the Company.  After payment to the
Company, Holders entitled to the Funds must look to the Company for payment as
general unsecured creditors unless an applicable abandoned property law designates
another Person and all liability of the Trustee and Paying Agent with respect to
such Funds shall cease.

 

Section 8.05           Reinstatement.

 

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

 

ARTICLE
IX

AMENDMENTS,
SUPPLEMENTS AND WAIVERS

 

Section 9.01           Without Consent
of Holders.

 

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

 

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

 

75

 

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

 

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

 

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

 

(5)           make any change
that would provide any additional rights or benefits to the Holders or that
does not adversely affect in any material respect the legal rights of any
Noteholders hereunder (provided that the removal of the provisions effecting subordination
of the Notes shall not be deemed to adversely affect the legal rights of
Holders of Notes for such purpose);

 

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

 

(7)           conform this
Indenture or the Notes to the descriptions thereof set forth under the heading “Description
of Notes” in the final Offering Circular dated March 12, 2010 relating to
the initial offering of Notes, to the extent that the Trustee has received an
Officers’ Certificate stating that any text to be so conformed constitutes an unintended
conflict with the corresponding provision in such Description of Notes;

 

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

 

Section 9.02           With Consent of
Holders.

 

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

 

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

 

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

 

76

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 9.03           Compliance with
TIA.

 

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

 

Section 9.04           Revocation and
Effect of Consents.

 

Until an amendment, waiver or supplement becomes
effective, a consent to it by a Holder is a continuing consent by the Holder
and every subsequent Holder of a Note or portion of a Note that evidences the
same debt as the consenting Holder’s Note, even if notation of the 

 

77

 

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

 

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

 

After an amendment, supplement or waiver becomes
effective, it shall bind every Holder, unless it makes a change described in
any of clauses (1) through (8) of Section 9.02, in which case,
the amendment, supplement or waiver shall bind only each Holder of a Note who
has consented to it and every subsequent Holder of a Note or portion of a Note
that evidences the same debt as a consenting Holder’s Note; provided, however,
that any such waiver shall not impair or affect the right of any Holder to
receive payment of principal of and interest on a Note, on or after the respective
due dates expressed in such Note, or to bring suit for the enforcement of any
such payment on or after such respective dates without the consent of such
Holder.

 

Section 9.05           Notation on or
Exchange of Notes.

 

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

 

Section 9.06           Trustee To Sign Amendments, Etc.

 

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

 

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ARTICLE
X

SUBORDINATION OF NOTES

 

Section 10.01         Notes
Subordinated to Senior Debt.

 

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

 

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

 

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

 

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

 

(b)           Unless Section 10.03
shall be applicable, upon (1) the occurrence and continuance of any event
of default (other than a Payment Default) with respect to any Designated Senior
Debt (as such event of default is defined in the instrument creating or evidencing
such Designated Senior Debt) permitting the holders of such Designated Senior
Debt then outstanding to accelerate the maturity thereof (a “Non-payment
Default”) and (2) the earlier of (i) receipt by the Trustee and the
Company from a Representative of written notice of such occurrence stating that
such notice is a “Payment Blockage Notice” pursuant to this Section 10.02
or (ii) if such Non-payment Default results from the acceleration of the
Notes, the date of such acceleration, no payment (other than payments previously
made pursuant to Article Eight) or distribution of any 

 

79

 

assets of the Company of any kind or
character shall be made by or on behalf of the Company or any other Person on
its or their behalf on account of any Obligations under the Notes or on account
of the purchase or redemption or other acquisition of Notes for cash or
property or otherwise (except that Holders may receive (i) Permitted
Junior Securities and (ii) payments made from the trusts described in Section 8.01)
for a period (the “Payment Blockage Period”) commencing on the date of receipt
by the Trustee of the written notice of a Non- payment Default from such
Representative or the date of the acceleration referred to in clause (ii) above,
as the case may be, unless and until the earlier to occur of the following
events: (w) 180 days shall have elapsed since receipt of such notice or
the date of the acceleration of the Notes, as the case may be (provided no
Designated Senior Debt shall theretofore have been accelerated), (x) such
Non-payment Default shall have been cured or waived or shall have ceased to
exist, (y) such Designated Senior Debt shall have been discharged or paid
in full in cash, Cash Equivalents or Foreign Cash Equivalents, or such payment
duly provided for to the satisfaction of the holders of such Designated Senior
Debt, or (z) such Payment Blockage Period shall have been terminated by
written notice to the Company and the Trustee from the Representative
initiating such Payment Blockage Period or the holders of at least a majority
in principal amount of such issue of Designated Senior Debt initiating such
Payment Blockage Period, after which, in the case of clause (w), (x), (y) or
(z), the Company shall resume making any and all required payments in respect
of the Notes, including any missed payments. 
Notwithstanding anything herein to the contrary, (x) in no event
will a Payment Blockage Period or successive Payment Blockage Periods with
respect to the same payment on the Notes extend beyond 180 days from the date
the payment on the Notes was due and (y) only one such Payment Blockage
Period may be commenced within any 360 consecutive days.  For all purposes of this Section 10.02(b),
no event of default which existed or was continuing on the date of the commencement
of any Payment Blockage Period with respect to the Designated Senior Debt of
the Company initiating such Payment Blockage Period shall be, or be made, the
basis for the commencement of a second Payment Blockage Period by the holders
or by the Representative of such Designated Senior Debt whether or not within a
period of 360 consecutive days, unless such event of default shall have been
cured or waived for a period of not less than 90 consecutive days (it being
acknowledged that any subsequent action, or any breach of any financial
covenants for a period commencing after the date of commencement of such
Payment Blockage Period that, in either case, would give rise to an event of
default pursuant to any provisions under which an event of default previously
existed or was continuing shall constitute a new event of default for this
purpose).

 

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

 

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

 

Upon any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, to
creditors upon any liquidation, dissolution, 

 

80

 

winding-up, reorganization, assignment for the
benefit of creditors or marshaling of assets of the Company or in a bankruptcy,
reorganization, insolvency, receivership or other similar proceeding relating
to the Company or its property, whether voluntary or involuntary:

 

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

 

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

 

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

 

(d)           The
consolidation of the Company with, or the merger of the Company with or into,
another Person or the liquidation or dissolution of the Company following the
conveyance, transfer or lease of its properties and assets substantially as an
entirety to 

 

81

 

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

 

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

 

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

 

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

 

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

 

Section 10.05         Obligations of
the Company Unconditional.

 

Nothing contained in this Article Ten or
elsewhere in this Indenture or in the Notes is intended to or shall impair, as
between the Company and the Holders, the obligation of 

 

82

 

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

 

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

 

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

 

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

 

Section 10.07         Application by
Trustee of Assets Deposited with It.

 

U.S. Legal Tender or U.S. Government Obligations
deposited in trust with the Trustee pursuant to and in accordance with Section 8.01
and 8.02 shall be for the sole benefit of the Holders of the Notes and, to the
extent allocated for the payment of Notes, shall not be 

 

83

 

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

 

Section 10.08         No Waiver of
Subordination Provisions.

 

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

 

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

 

Section 10.09         Holders
Authorize Trustee To Effectuate Subordination of Notes.

 

Each Holder of the Notes by such Holder’s acceptance
thereof authorizes and expressly directs the Trustee on his behalf to take such
action as may be necessary or appropriate to effect the subordination
provisions contained in this Article Ten, and appoints the Trustee such
Holder’s attorney-in-fact for such purpose, including, in the event of any
liquidation, dissolution, winding-up, reorganization, assignment for the
benefit of creditors or marshaling of assets of the Company tending towards
liquidation or reorganization of the business and assets of the Company, the
immediate filing of a claim for the unpaid balance of such Holder’s Notes in
the form required in said proceedings and cause said claim to be approved.  If the Trustee does not file a proper claim
or proof of debt in the form required in such proceeding prior to 30 days before
the expiration of the time to file such claim or claims, then any of the
holders of the Senior Debt or 

 

84

 

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

 

Section 10.10         Right of
Trustee To Hold Senior Debt.

 

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

 

Section 10.11         No Suspension
of Remedies.

 

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

 

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

 

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

 

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

 

ARTICLE
XI

GUARANTEE OF NOTES

 

Section 11.01         Unconditional
Guarantee.

 

Subject to the provisions of this Article Eleven,
each of the Guarantors hereby, jointly and severally, unconditionally and
irrevocably guarantees, on a senior subordinated basis (such guarantees to be
referred to herein as the “Guarantee”) to each Holder of a Note (including 

 

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

 

Each of the Guarantors hereby agrees that its
obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the Notes or this Indenture, the absence of any
action to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions hereof or thereof, any release of any other
Guarantor, the recovery of any judgment against the Company, any action to
enforce the same, whether or not a Guarantee is affixed to any particular Note,
or any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a Guarantor. 
Each of the Guarantors hereby waives the benefit of diligence,
presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding
first against the Company, protest, notice and all demands whatsoever and
covenants that its Guarantee shall not be discharged except by complete
performance of the obligations contained in the Notes, this Indenture and this
Guarantee.  This Guarantee is a guarantee
of payment and not of collection.  If any
Holder or the Trustee is required by any court or otherwise to return to the
Company or to any Guarantor, or any custodian, trustee, liquidator or other
similar official acting in relation to the Company or such Guarantor, any
amount paid by the Company or such Guarantor to the Trustee or such Holder,
this Guarantee, to the extent theretofore discharged, shall be reinstated in
full force and effect.  Each Guarantor
further agrees that, as between it, on the one hand, and the Holders of Notes
and the Trustee, on the other hand, (a) subject to this Article Eleven,
the maturity of the obligations guaranteed hereby may be accelerated as
provided in Article Six hereof for the purposes of this Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (b) in
the event of any acceleration of such obligations as provided in Article Six
hereof, such obligations (whether or not due and payable) shall forthwith
become due and payable by the Guarantors for the purpose of this Guarantee.

 

86

 

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

 

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

 

Section 11.02         Limitations on
Guarantees.

 

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

 

Section 11.03         Execution and
Delivery of Guarantee.

 

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

 

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

 

If an Officer of a Guarantor whose signature is on
this Indenture or a Guarantee no longer holds that office at the time the
Trustee authenticates the Note on which such Guarantee is endorsed or at any
time thereafter, such Guarantor’s Guarantee of such Note shall be valid
nevertheless.

 

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

 

Section 11.04         Release of a
Guarantor.

 

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

 

87

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 11.05         Waiver of
Subrogation.

 

Until this Indenture is discharged and all of the
Notes are discharged and paid in full, each Guarantor hereby irrevocably waives
and agrees not to exercise any claim or other rights which it may now or
hereafter acquire against the Company that arise from the existence, payment,
performance or enforcement of the Company’s obligations under the Notes or this
Indenture and such Guarantor’s obligations under this Guarantee and this
Indenture, in any such instance including, without limitation, any right of
subrogation, reimbursement, exoneration, contribution, indemnification, and any
right to participate in any claim or remedy of the Holders against the Company,
whether or not such claim, remedy or right arises in equity, or under contract,
statute or common law, including, without limitation, the right to take or
receive from the Company, directly or indirectly, in cash or other property or
by set-off or in any other manner, payment or security on account of such claim
or other rights.  If any amount shall be
paid to any 

 

88

 

Guarantor in violation of
the preceding sentence and any amounts owing to the Trustee or the Holders of
Notes under the Notes, this Indenture, or any other document or instrument
delivered under or in connection with such agreements or instruments, shall not
have been paid in full, such amount shall have been deemed to have been paid to
such Guarantor for the benefit of, and held in trust for the benefit of, the
Trustee or the Holders and shall forthwith be paid to the Trustee for the
benefit of itself or such Holders to be credited and applied to the obligations
in favor of the Trustee or the Holders, as the case may be, whether matured or
unmatured, in accordance with the terms of this Indenture.  Each Guarantor acknowledges that it will
receive direct and indirect benefits from the financing arrangements contemplated
by this Indenture and that the waiver set forth in this Section 11.05 is
knowingly made in contemplation of such benefits.

 

Section 11.06         Immediate
Payment.

 

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

 

Section 11.07         No Set-Off.

 

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

 

Section 11.08         Obligations
Absolute.

 

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

 

Section 11.09         Obligations
Continuing.

 

The obligations of each Guarantor hereunder shall be
continuing and shall remain in full force and effect until all the obligations
have been paid and satisfied in full.

 

Section 11.10         Obligations Not
Reduced.

 

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

 

89

 

Section 11.11         Obligations Reinstated.

 

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

 

Section 11.12         Obligations Not
Affected.

 

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

 

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

 

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

 

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

 

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

 

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

 

(f)            any change in the time,
manner or place of payment of, or in any other term of, any of the Notes, or
any other amendment, variation, supplement, replacement or waiver of, or any
consent to departure from, any of the Notes or this Indenture, including, 

 

90

 

without
limitation, any increase or decrease in the principal amount of or premium, if
any, or interest on any of the Notes;

 

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

 

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

 

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

 

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

 

Section 11.13         Waiver.

 

Without in any way limiting the provisions of Section 11.01
hereof, each Guarantor hereby waives notice of acceptance hereof, notice of any
liability of any Guarantor hereunder, notice or proof of reliance by the
Holders upon the obligations of any Guarantor hereunder, and diligence,
presentment, demand for payment on the Company, protest, notice of dishonor or
non-payment of any of the Obligations, or other notice or formalities to the
Company or any Guarantor of any kind whatsoever.

 

Section 11.14         No Obligation
To Take Action Against the Company.

 

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

 

Section 11.15         Dealing with
the Company and Others.

 

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

 

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

 

91

 

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

 

(c)           accept
compromises or arrangements from the Company;

 

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

 

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

 

Section 11.16         Default and
Enforcement.

 

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

 

Section 11.17         Amendment, Etc.

 

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

 

Section 11.18         Acknowledgment.

 

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

 

Section 11.19         Costs and
Expenses.

 

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

 

Section 11.20         No Waiver;
Cumulative Remedies.

 

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

 

92

 

Section 11.21         Guarantee in
Addition to Other Obligations.

 

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

 

Section 11.22         Severability.

 

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

 

Section 11.23         Successors and
Assigns.

 

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

 

ARTICLE
XII

SUBORDINATION OF GUARANTEE

 

Section 12.01         Guarantee
Obligations Subordinated to Guarantor Senior Debt.

 

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

 

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

 

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

 

(a)           Unless Section 12.03
shall be applicable, upon (1) the occurrence of a Payment Default with
respect to any Designated Senior Debt of a Guarantor or guaranteed by a 

 

93

 

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

 

(b)           Unless Section 12.03
shall be applicable upon (1) the occurrence of any event of default (other
than a Payment Default) with respect to any Designated Senior Debt of a
Guarantor (as such event of default is defined in the instrument creating or
evidencing such Designated Senior Debt of a Guarantor) and (2) the earlier
of (i) receipt by a Responsible Officer of the Trustee, the Company and
such Guarantor from a Representative of written notice of such occurrence
stating that such notice is a “Payment Blockage Notice” pursuant to this Section 12.02
or (ii) if such Non-payment Default results from the acceleration of the
Securities, the date of the acceleration of the Securities, no payment (other
than payments previously made pursuant to Article Eight hereof) or distribution
of any assets of such Guarantor of any kind or character shall be made by on or
behalf of such Guarantor or any other Person on its or their behalf on account
of principal, premium, if any, or interest on the Notes or on account of the
purchase, redemption or other acquisition of Notes for cash or property or
otherwise (except that Holders may receive (i) Permitted Junior Securities
and (ii) payments made from the trusts described in Section 8.01) for
a period (the “Guarantor Payment Blockage Period”) commencing on the date of
receipt by a Responsible Officer of the Trustee of such notice or the date of
the acceleration referred to in clause (ii) above, as the case may be,
unless and until the earlier to occur of the following events: (w) 180
days shall have elapsed since receipt of such written notice by a Responsible
Officer of the Trustee or the date of the acceleration of the Notes, as the
case may be (provided no Designated Senior Debt of a Guarantor shall
theretofore have been accelerated), (x) such Non-payment Default shall
have been cured or waived or shall have ceased to exist, (y) such
Designated Senior Debt shall have been discharged or paid in full in cash, Cash
Equivalents or Foreign Cash Equivalents, or such payment duly provided for to
the satisfaction of the holders of such Designated Senior Debt of a Guarantor
or (z) such Guarantor Payment Blockage Period shall have been terminated
by written notice to the Trustee from the Representative initiating Guarantor
Payment Blockage Period, or the holders of at least a majority in principal
amount of such issue of Guarantor Senior Debt, after which, in the case of
clause (w), (x), (y) or (z), such Guarantor shall resume making any and
all required payments in respect of its obligations under its Guarantee,
including any missed payments. 
Notwithstanding anything herein to the contrary, (x) in no event
will a Guarantor Payment Blockage Period or successive Guarantor Payment
Blockage Periods with respect to the same payment on a Guarantee extend beyond
180 days from the date the payment on a Guarantee was due and (y) only one
such Guarantor Payment 

 

94

 

Blockage Period may be commenced within any
360 consecutive days.  For all purposes
of this Section 12.02(b), no event of default which existed or was
continuing on the date of the commencement of any Guarantor Payment Blockage
Period with respect to the Designated Senior Debt of a Guarantor initiating
such Guarantor Payment Blockage Period shall be, or be made, the basis for the
commencement of a second Guarantor Payment Blockage Period by the holders or by
the agent or other representative of such Designated Senior Debt of a Guarantor
whether or not within a period of 360 consecutive days, unless such event of
default shall have been cured or waived for a period of not less than 90
consecutive days (it being acknowledged that any subsequent action, or any
breach of any financial covenants for a period commencing after the date of
commencement of such Guarantor Payment Blockage Period that, in either case,
would give rise to an event of default pursuant to any provisions under which
an event of default previously existed or was continuing shall constitute a new
event of default for this purpose).

 

(c)           In the event that,
notwithstanding the foregoing, a Guarantor shall have made payment to the
Trustee or directly to the Holder of any Note prohibited by the foregoing
provisions of this Section 12.02, then and in such event such payment
shall be segregated from other funds and held in trust by the Trustee or such
Holder or Paying Agent for the benefit of, and shall immediately be paid over
to, the holders of Designated Senior Debt of a Guarantor or to the
Representatives or as a court of competent jurisdiction shall direct.

 

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

 

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

 

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

 

(b)           any payment or distribution
of assets of such Guarantor of any kind or character, whether in cash, property
or securities, to which the Holders or the Trustee on behalf of the Holders
would be entitled except for the provisions of this Article Twelve shall
be paid by the liquidating trustee or agent or other Person making such a
payment or 

 

95

 

distribution,
directly to the holders of Guarantor Senior Debt of such Guarantor or their
representatives, ratably according to the respective amounts of such Guarantor
Senior Debt remaining unpaid held or represented by each, until all such
Guarantor Senior Debt remaining unpaid shall have been paid in full in cash,
Cash Equivalents or Foreign Cash Equivalents, or such payment duly provided for
to the satisfaction of the holders of Guarantor Senior Debt, after giving
effect to any concurrent payment or distribution to the holders of such
Guarantor Senior Debt;

 

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

 

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

 

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

 

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

 

96

 

of defining the relative
rights of the Holders, on the one hand, and the holders of such Guarantor
Senior Debt, on the other hand.

 

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

 

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

 

Section 12.05         Obligations of
the Guarantors Unconditional.

 

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

 

97

 

of, or other representative
of, such holder) to establish that such notice has been given by a holder of
such Guarantor Senior Debt or a trustee or representative on behalf of any such
holder.

 

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

 

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

 

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

 

Section 12.07         Application by
Trustee of Assets Deposited with It.

 

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

 

Section 12.08         No Waiver of
Subordination Provisions.

 

(a)           No right of any present or
future holder of any Guarantor Senior Debt to enforce subordination as herein
provided shall at any time in any way be prejudiced or impaired 

 

98

 

by any act or failure to act on the part of
any Guarantor or by any act or failure to act, by any such holder, or by any
non-compliance by any Guarantor with the terms, provisions and covenants of
this Indenture, regardless of any knowledge thereof any such holder may have or
be otherwise charged with.

 

(b)           Without limiting the
generality of subsection (a) of this Section 12.08, the holders of
Guarantor Senior Debt may, at any time and from time to time, without the
consent of or notice to the Trustee or the Holders of the Securities, without
incurring responsibility to the Holders of the Notes and without impairing or
releasing the subordination provided in this Article Twelve or the
obligations hereunder of the Holders of the Notes to the holders of Guarantor
Senior Debt, do any one or more of the following: (1) change the manner,
place, terms or time of payment of, or renew or alter, Guarantor Senior Debt or
any instrument evidencing the same or any agreement under which Guarantor
Senior Debt is outstanding; (2) sell, exchange, release or otherwise deal
with any property pledged, mortgaged or otherwise securing Guarantor Senior
Debt; (3) release any Person liable in any manner for the collection or
payment of Guarantor Senior Debt; and (4) exercise or refrain from
exercising any rights against the Guarantors and any other Person.

 

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

 

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

 

Section 12.10         Right of
Trustee To Hold Guarantor Senior Indebtedness.

 

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

 

99

 

Section 12.11         No Suspension
of Remedies.

 

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

 

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

 

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

 

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

 

ARTICLE XIII

MISCELLANEOUS

 

Section 13.01         TIA Controls.

 

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

 

Section 13.02         Notices.

 

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

 

100

 

if to the Company or any Guarantor:

 

Huntsman
International LLC

500 Huntsman Way

Salt Lake City, Utah 84108

 

Attention:
Office of General Counsel

 

if to the Trustee:

 

Wells Fargo Bank, National Association

Corporate Trust Services

MAC N9311-110

625 Marquette Avenue

Minneapolis, Minnesota  55479

 

	
  Attention:

  	
  Corporate
  Trust Services -

  
	
   

  	
  Huntsman
  Administrator

  

 

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

 

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

 

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

 

Section 13.03         Communications
by Holders with Other Holders.

 

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

 

Section 13.04         Certificate and
Opinion as to Conditions Precedent.

 

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

 

(1)           an Officers’
Certificate, in form and substance satisfactory to the Trustee, stating that,
in the opinion of the signers, all conditions precedent to be 

 

101

 

performed
by the Company, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

 

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

 

Section 13.05         Statements
Required in Certificate or Opinion.

 

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

 

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

 

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

 

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

 

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

 

Section 13.06         Rules by
Trustee, Paying Agent, Registrar.

 

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

 

Section 13.07         Legal Holidays.

 

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

 

Section 13.08         Governing Law.

 

THIS INDENTURE, THE NOTES AND THE GUARANTEES SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.  Each of the parties hereto agrees
to submit to the non-exclusive jurisdiction of the competent courts of the
State of New York in any action or proceeding arising out of or relating to
this Indenture or the Notes.

 

102

 

Section 13.09         No Adverse
Interpretation of Other Agreements.

 

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

 

Section 13.10         No Recourse
Against Others.

 

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

 

Section 13.11         Successors.

 

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

 

Section 13.12         Duplicate
Originals.

 

All parties may sign any number of copies of this
Indenture.  Each signed copy shall be an
original, but all of them together shall represent the same agreement.  The exchange of copies of this Indenture and
of signature pages by facsimile or PDF transmission shall constitute
effective execution and delivery of this Indenture as to the parties hereto and
may be used in lieu of the original Indenture for all purposes.  Signatures of the parties hereto transmitted
by facsimile or PDF shall be deemed to be their original signatures for all
purposes.

 

Section 13.13         Severability.

 

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

 

Section 13.14         Independence of
Covenants.

 

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

 

103

 

Section 13.15. 
Force Majeure.

 

In no event shall the Trustee be responsible or liable for
any failure or delay in the performance of its obligations hereunder arising
out of or caused by, directly or indirectly, forces beyond its control,
including, without limitation, strikes, work stoppages, accidents, acts of war
or terrorism, civil or military disturbances, nuclear or natural catastrophes
or acts of God, and interruptions, loss or malfunctions of utilities,
communications or computer (software and hardware) services; it being
understood that the Trustee shall use reasonable efforts which are consistent
with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.

 

Section 13.16. 
U.S.A. Patriot Act.

 

The parties hereto acknowledge that in accordance with Section 326
of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in
order to help fight the funding of terrorism and money laundering, is required
to obtain, verify, and record information that identifies each person or legal
entity that establishes a relationship or opens an account with the
Trustee.  The parties to this Indenture
agree that they will provide the Trustee with such information as it may request
in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act.

 

[Remainder of Page Intentionally Left Blank]

 

104

 

SIGNATURES

 

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

 

	
   

  	
  HUNTSMAN
  INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John R. Heskett

  
	
   

  	
   

  	
  Name:
  John R. Heskett

  
	
   

  	
   

  	
  Title:
  Vice President, Planning and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GUARANTORS

  
	
   

  	
   

  
	
   

  	
  AIRSTAR CORPORATION

  
	
   

  	
  HUNTSMAN ADVANCED MATERIALS AMERICAS LLC

  
	
   

  	
  HUNTSMAN ADVANCED MATERIALS LLC

  
	
   

  	
  HUNTSMAN AUSTRALIA INC.

  
	
   

  	
  HUNTSMAN CHEMICAL PURCHASING CORPORATION

  
	
   

  	
  HUNTSMAN ENTERPRISES, INC.

  
	
   

  	
  HUNTSMAN ETHYLENEAMINES LLC

  
	
   

  	
  HUNTSMAN FUELS LLC

  
	
   

  	
  HUNTSMAN INTERNATIONAL FINANCIAL LLC

  
	
   

  	
  HUNTSMAN INTERNATIONAL FUELS LLC

  
	
   

  	
  HUNTSMAN INTERNATIONAL TRADING CORPORATION

  
	
   

  	
  HUNTSMAN MA INVESTMENT CORPORATION

  
	
   

  	
  HUNTSMAN MA SERVICES CORPORATION

  
	
   

  	
  HUNTSMAN PETROCHEMICAL LLC

  
	
   

  	
  HUNTSMAN PETROCHEMICAL PURCHASING CORPORATION

  
	
   

  	
  HUNTSMAN PROCUREMENT CORPORATION

  
	
   

  	
  HUNTSMAN PROPYLENE OXIDE LLC

  
	
   

  	
  HUNTSMAN PURCHASING, LTD.

  
	
   

  	
  BY: HUNTSMAN PROCUREMENT CORPORATION, its General Partner

  
	
   

  	
  POLYMER MATERIALS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John R. Heskett

  
	
   

  	
   

  	
  Name:
  John R. Heskett

  
	
   

  	
   

  	
  Title: Vice President, Planning and Treasurer

  

 

S-1

 

	
  Executed
  as a Deed by

  	
   

  	
  TIOXIDE
  AMERICAS INC.

  
	
  John
  R. Heskett

  	
   

  	
   

  
	
  for
  and on behalf of 

  	
   

  	
   

  
	
  Tioxide
  Americas Inc

  	
   

  	
  By:

  	
  /s/
  John R. Heskett

  
	
  in
  the presence of

  	
   

  	
   

  	
  Name:
  John R. Heskett

  
	
   

  	
   

  	
   

  	
  Title:
  Vice President, Planning and Treasurer

  
	
  /s/
  Michelle Fujinami 

  	
   

  	
   

  	
   

  
	
  Witness

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TIOXIDE
  GROUP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Mike Dixon

  
	
   

  	
   

  	
   

  	
  Name:
  Mike Dixon

  
	
   

  	
   

  	
   

  	
  Title:
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Michael Maughan

  
	
   

  	
   

  	
   

  	
  Name:
  Michael Maughan

  
	
   

  	
   

  	
   

  	
  Title:
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Lynn M. Steiner

  
	
   

  	
   

  	
   

  	
  Name:
  Lynn M. Steiner

  
	
   

  	
   

  	
   

  	
  Title:
  Vice President

  

 

S-2

 

EXHIBIT A

 

(FACE OF NOTE)

 

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

 

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

 

[Include in Restricted
Security only.]

 

A-1

 

HUNTSMAN INTERNATIONAL LLC

 

85/8% Senior Subordinated Note
due 2020

 

No. 
$                
CUSIP No.

 

HUNTSMAN INTERNATIONAL LLC, a Delaware limited
liability company (the “Company”), for value received, promises to pay to                     
or registered assigns, the principal sum of $              ,
on March 15, 2020.

 

Interest Payment Dates:  March 15 and September 15

 

Record Dates: 
March 1 and September 1

 

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

 

A-2

 

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

 

	
  Dated:

  	
  HUNTSMAN
  INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Certificate
of Authentication

 

This is one of the 85/8% Senior Subordinated Notes due 2020 referred to in the
within-mentioned Indenture.

 

	
  Dated:

  	
  Wells
  Fargo Bank, National Association, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Signature

  

 

A-3

 

(REVERSE OF NOTE)

 

85/8% Senior Subordinated Note
due 2020

 

1.             Interest.  HUNTSMAN INTERNATIONAL LLC, a Delaware
limited liability company (the “Company”), promises to pay interest on the
principal amount of this Note at the rate per annum shown above.  Interest on the Notes will accrue from the
most recent date on which interest has been paid or, if no interest has been
paid, from March 17, 2010.  The Company
will pay interest semi-annually in arrears on each March 15 and September 15
(each, an “Interest Payment Date”) and at stated maturity, commencing on September 15,
2010.  Interest will be computed on the
basis of a 360-day year comprised of twelve 30-day months.

 

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

 

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

 

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

 

4.             Indenture.  The Company issued the Notes under an
Indenture, dated as of March 17, 2010 (the “Indenture”), among the
Company, each of the Guarantors named therein and the Trustee.  This Note is one of a duly authorized issue
of Notes of the Company designated as its 85/8% Senior Subordinated Notes due 2020 (the “Notes”), which may be issued
under the Indenture.  The Company shall
be entitled to issue Additional Notes pursuant to Section 2.18 of the
Indenture.  The Notes and any Additional
Notes and any Exchange Notes issued in accordance with the Indenture are
treated as a single class of securities under the Indenture unless otherwise
specified in the Indenture.  Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
unless otherwise defined herein.  The
terms of the Notes include those stated in the Indenture and those made part of
the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C.
§§ 77aaa-77bbbb) (the “TIA”), as in effect on the date of the Indenture.  Notwithstanding anything to the contrary
herein, the Notes are subject to all such terms, and Holders of Notes are referred
to the Indenture and the TIA for a statement of them.  The Notes are senior subordinated unsecured obligations
of the Company.

 

A-4

 

5.             Optional Redemption.

 

(a)           The Notes will be redeemable, at the Company’s
option, in whole at any time or in part from time to time, on and after March 15,
2015, upon not less than 30 nor more than 60 days’ notice, at the following
redemption prices (expressed as percentages of the principal amount thereof) if
redeemed during the twelve-month period commencing on March 15 of the year
set forth below, plus, in each case, accrued and unpaid interest thereon, if
any, to the date of redemption:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2015

  	
   

  	
  104.3125

  	
  %

  
	
  2016

  	
   

  	
  102.8750

  	
  %

  
	
  2017

  	
   

  	
  101.4375

  	
  %

  
	
  2018 and thereafter

  	
   

  	
  100.0000

  	
  %

  

 

(b)           At any time, or from time to time, prior to March 15,
2013, the Company may, at its option, use the net cash proceeds of one or more
Equity Offerings (as defined below) to redeem up to 40% of the aggregate
principal amount of Notes originally issued (including the original principal
amount of any Additional Notes) at a redemption price equal to 108.625% of the
principal amount thereof plus accrued and unpaid interest thereon, if any, to
the date of redemption; provided, however, that at least 60% of the aggregate
principal amount of the Notes originally issued remain (including the principal
amount of any Additional Notes) outstanding immediately after any such
redemption.  In order to effect the
foregoing redemption with the proceeds of any Equity Offering, the Company
shall make such redemption not more than 120 days after the consummation of any
such Equity Offering.

 

(c)           At any time prior to March 15, 2015, the Notes
may be redeemed, in whole or in part at the option of the Company, upon not
less than 30 nor more than 60 days’ notice, at a redemption price (the “Make-Whole
Price”) equal to the greater of (i) 100.000% of the principal amount
thereof or (ii) as determined by an Independent Investment Banker, the present
value of (A) 104.3125% of the Notes being redeemed as of March 15,
2015 plus (B) all required interest payments due on such Notes through March 15,
2015 (excluding accrued interest), discounted to the Redemption Date on a
semiannual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Adjusted Treasury Rate plus, in each case, accrued interest to the
Redemption Date.

 

6.             Notice of
Redemption.  Notice of
redemption will be delivered at least 30 days but not more than 60 days before
the Redemption Date to each Holder whose Notes are to be redeemed at such
Holder’s registered address, except as provided in the Indenture.  Notes in denominations larger than $2,000 may
be redeemed in part.

 

7.             Change of
Control Offer.  In the
event of a Change of Control, upon the satisfaction of the conditions set forth
in the Indenture, the Company shall be required to offer to repurchase all of
the then outstanding Notes pursuant to a Change of Control Offer at a purchase 

 

A-5

 

price equal to 101% of the
principal amount thereof plus accrued and unpaid interest, if any, to the date
of purchase.  Holders of Notes that are
the subject of such an offer to repurchase shall receive an offer to repurchase
and may elect to have such Notes repurchased in accordance with the provisions
of the Indenture pursuant to and in accordance with the terms of the Indenture.

 

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

 

9.             Denominations;
Transfer; Exchange.  The Notes
are in fully registered form only, without coupons, in denominations of $2,000
and integral multiples of $1,000.  A
Holder shall register the transfer or exchange of Notes in accordance with the
Indenture.  The Registrar may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay certain transfer taxes or similar governmental charges
payable in connection therewith as permitted by the Indenture.  The Registrar need not register the transfer
or exchange of any Notes during a period beginning 15 days before the sending
of a redemption notice for any Notes or portions thereof selected for
redemption.

 

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

 

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

 

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

 

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

 

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

 

A-6

 

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

 

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

 

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

 

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

 

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

 

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

 

21.           Abbreviations and Defined Terms.  Customary abbreviations may be- used in the
name of a Holder of a Note or an assignee, such as: TEN COM (= tenants in common),
TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

 

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

 

[23.        Registration Rights.  Pursuant to the Registration Rights
Agreement, the Company and the Guarantors will be obligated upon the occurrence
of certain events and subject

 

A-7

 

to certain conditions to
consummate an exchange offer pursuant to which the Holder of this Note shall
have the right to exchange this Note for a 85/8% Senior Subordinated Note due 2020, of the Company (an “Unrestricted
Note”) which have been registered under the Securities Act, in like principal
amount and having terms identical in all material respects as this Note.  The Holders shall be entitled to receive
certain additional interest payments in the event such exchange offer is not
consummated and upon certain other conditions, all pursuant to and in accordance
with the terms of the Registration Rights Agreement.]  [Include in Restricted Security only.]

 

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

 

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

 

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

 

A-8

 

[FORM OF ASSIGNMENT]

 

I or we assign to

 

PLEASE
INSERT SOCIAL SECURITY

OR OTHER IDENTIFYING NUMBER

 

	
   

  	
   

  

 

 

(please print or type name and address)

 

 

 

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

 

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

 

	
  Signature
  Guarantee:

  	
   

  

 

A-9

 

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

 

[Check One]

 

	
  (1)

  	
  o

  	
  to
  the Company or a subsidiary thereof; or

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  o

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

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  o

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

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  o

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

  
	
   

  	
   

  	
   

  
	
  (5)

  	
  o

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

  
	
   

  	
   

  	
   

  
	
  (6)

  	
  o

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

  
	
   

  	
   

  	
   

  
	
  (7)

  	
  o

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

  

 

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

 

	
   

  	
  o

  	
  The
  transferee is an Affiliate of the Company.

  

 

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

 

A-10

 

and other information as the
Trustee or the Company have reasonably requested to confirm that such transfer
is being made pursuant to an exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act of l933, as amended.

 

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

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign
  exactly as name appears

  
	
   

  	
   

  	
   

  	
  on
  the other side of this Note)

  

 

 

	
  Signature
  Guarantee:

  	
   

  

 

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

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE:

  	
  To
  be executed by an

  
	
   

  	
   

  	
   

  	
  executive
  officer]

  

 

[The
foregoing to be included in a Restricted Security only.]

 

A-11

 

OPTION OF HOLDER TO ELECT PURCHASE

 

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

 

Section 4.14 [ ] Section 4.15 [ ]

 

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

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign
  exactly as name appears

  
	
   

  	
   

  	
   

  	
  on
  the other side of this Note)

  

 

 

	
  Signature
  Guarantee:

  	
   

  
	
   

  	
  Participant
  in a recognized Signature

  	
   

  
	
   

  	
  Guarantee
  Medallion Program (or other

  	
   

  
	
   

  	
  signature
  guarantor program reasonably

  	
   

  
	
   

  	
  acceptable
  to the Trustee)

  	
   

  

 

A-12

 

EXHIBIT B

 

FORM OF LEGEND FOR GLOBAL SECURITY

 

Any Global Security authenticated and delivered
hereunder shall bear a legend (which would be in addition to any other legends
required in the case of a Restricted Security) in substantially the following
form:

 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY.  THIS NOTE IS NOT EXCHANGEABLE FOR NOTES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER
OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITORY
TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE
DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY, TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF THE DEPOSITORY OR A NOMINEE OF THE DEPOSITORY OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY (AND ANY PAYMENT IS MADE TO ITS NOMINEE OR TO SUCH OTHER ENTITY AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY), ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, A NOMINEE OF THE DEPOSITORY, HAS AN
INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF THE DEPOSITORY
OR ITS NOMINEE OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS
MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE.

 

B-1

 

EXHIBIT C-1

 

FORM OF TRANSFER CERTIFICATE

RESTRICTED GLOBAL SECURITY TO

REGULATION S GLOBAL SECURITY

 

(Transfers pursuant to Sections 2.16(a)(ii) of the Indenture)

 

Wells
Fargo Bank, National Association

Sixth
Street and Marquette Avenue

MAC
N9303-120

Minneapolis,
Minnesota 55479

Attention:
Corporate Trust Services

 

Huntsman
International LLC

500
Huntsman Way

Salt
Lake City, Utah 84108

Attention:  Secretary

 

Attention:
Corporate Trust Services

 

Re:          Huntsman International LLC 85/8% Senior Subordinated Notes 

due 2020 (the “Securities”)

 

Reference is hereby made to the Indenture, dated as
of March 17, 2010 between the Company and Wells Fargo Bank, National
Association, as trustee, (the “Indenture”). 
Terms used but not defined herein and defined in Regulation S under the
U.S. Securities Act of 1933 (the “Securities Act”) or in the Indenture shall
have the meanings given to them in Regulation S or the Indenture, as the case
may be.

 

This certificate relates to
U.S.$           principal
amount of Securities, which are evidenced by the following certificate(s) (the
“Specified Securities”):

 

[CUSIP] [ISIN] No(s).

 

CERTIFICATE No(s).

 

The person in whose name this certificate is
executed below (the “Undersigned”) hereby certifies that either (i) it is
the sole beneficial owner of the Specified Securities or (ii) it is acting
on behalf of all the beneficial owners of the Specified Securities and is duly
authorized by them to do so.  Such
beneficial owner or owners are referred to herein collectively as the “Owner”.  If the Specified Securities are represented
by a Global Security, they are held through the Depositary or an Agent Member
in the name of the Undersigned, as or on behalf of the Owner.

 

The Owner has requested that the Specified
Securities be transferred to a person (the “Transferee”) who will take delivery
in the form of an interest in the Regulation S Global Security.  In connection with such transfer, the Owner
hereby certifies that such transfer is being 

 

C-1-1

 

effected in accordance with Rule 904
under the Securities Act and with all applicable securities laws of the states
of the United States and other jurisdictions. 
Accordingly, the Owner hereby further certifies as follows:

 

1.  the Owner
is not a distributor of the Specified Securities, an Affiliate of the Company
or any such distributor or a person acting on behalf of any of the foregoing;

 

2.  the offer
of the Specified Securities was not made to a person in the United States;

 

3.  either:

 

(a)  at the time the
buy order was originated, the Transferee was outside the United States or the
Owner and any person acting on its behalf reasonably believed that the
Transferee was outside the United States; or

 

(b)  the transaction is
being executed in, on or through the facilities of the Eurobond market, as
regulated by the Association of International Bond Dealers, or another designated
offshore securities market and neither the Owner nor any person acting on its
behalf knows that the transactions have been prearranged with a buyer in the
United States;

 

4.  no
directed selling efforts have been made in the United States by or on behalf of
the Owner or any Affiliate thereof;

 

5.  if the
Owner is a dealer in securities or has received a selling concession, fee or
other remuneration in respect of the Specified Securities, and the transfer is
to occur during the Restricted Period, then the requirements of Rule 904(c)(1) have
been satisfied;

 

6.  the
transaction is not part of a plan or scheme to evade the registration requirements
of the Securities Act; and

 

7.  upon
completion of the transaction, the beneficial interest being transferred will
be held through an Agent Member.

 

C-1-2

 

This certificate and the statements contained herein
are made for your benefit and the benefit of the Company and the Initial
Purchasers under the Purchase Agreement.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print
  the name of the Undersigned, as such term is

  
	
   

  	
  defined
  in the second paragraph of this certificate.)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  (If
  the Undersigned is a corporation, partnership or

  
	
   

  	
  fiduciary,
  the title of the person signing on behalf of

  
	
   

  	
  the Undersigned must be stated.)

  

 

C-1-3

 

EXHIBIT C-2

 

FORM OF TRANSFER CERTIFICATE

RESTRICTED GLOBAL SECURITY TO UNRESTRICTED

GLOBAL SECURITY

 

(Transfers Pursuant to Section 2.16(a)(iii) of the Indenture)

 

Wells
Fargo Bank, National Association

Sixth
Street and Marquette Avenue

MAC
N9303-120

Minneapolis,
Minnesota 55479

Attention:
Corporate Trust Services

 

Huntsman
International LLC

500
Huntsman Way

Salt
Lake City, Utah 84108

Attention:  Secretary

 

Re:          Huntsman International LLC 85/8% Senior Subordinated Notes

due 2020 (the “Securities”)

 

Reference is hereby made to the Indenture, dated as
of March 17, 2010 between the Company, the Guarantors named therein and
Wells Fargo Bank, National Association, as trustee, (the “Indenture”).  Terms used but not defined herein and defined
in Regulation S under the U.S. Securities Act of 1933 (the “Securities Act”) or
in the Indenture shall have the meanings given to them in Regulation S or the
Indenture, as the case may be.

 

This certificate relates to
U.S.$           principal
amount of Securities, which are evidenced by the following certificate(s) (the
“Specified Securities”):

 

[CUSIP] [ISIN] No(s).

 

CERTIFICATE No(s).

 

The person in whose name this certificate is
executed below (the “Undersigned”) hereby certifies that either (i) it is
the sole beneficial owner of the Specified Securities or (ii) it is acting
on behalf of all the beneficial owners of the Specified Securities and is duly
authorized by them to do so.  Such
beneficial owner or owners are referred to herein collectively as the “Owner”.  If the Specified Securities are represented
by a Global Security, they are held through the Depositary or an Agent Member
in the name of the Undersigned, as or on behalf of the Owner.

 

The Owner has requested that the Specified
Securities be transferred to a person (the “Transferee”) who will take delivery
in the form of an interest in the Unrestricted Global Security.  In connection with such transfer, the Owner
hereby certifies that such transfer is being effected in accordance with Rule 904
or Rule 144 under the Securities Act and with all applicable 

 

C-2-1

 

securities laws of the
states of the United States and other jurisdictions.  Accordingly, the Owner hereby further
certifies as follows:

 

(1)           Rule 904 Transfers.  If the transfer is being effected in
accordance with Rule 904:

 

(A)          the Owner is not a
distributor of the Specified Securities, an Affiliate of the Company or any
such distributor or a person acting on behalf of any of the foregoing;

 

(B)           the offer of the Specified
Securities was not made to a person in the United States;

 

(C)           either:

 

(i)            at the time the buy order
was originated, the Transferee was outside the United States or the Owner and
any person acting on its behalf reasonably believed that the Transferee was outside
the United States; or

 

(ii)           the transaction is being
executed in, on or through the facilities of the Eurobond market, as regulated
by the Association of International Bond Dealers, or another designated
offshore securities market and neither the Owner nor any person acting on its
behalf knows that the transactions has been prearranged with a buyer in the
United States;

 

(D)          no directed selling efforts
have been made in the United States by or on behalf of the Owner or any
Affiliate thereof;

 

(E)           if the Owner is a dealer in
securities or has received a selling concession, fee or other remuneration in
respect of the Specified Securities, and the transfer is to occur during the
Restricted Period, then the requirements of Rule 904(c)(1) have been
satisfied; and

 

(F)           the transaction is not part
of a plan or scheme to evade the registration requirements of the Securities
Act.

 

(2)           Rule 144 Transfers.  If the transfer is being effected pursuant to
Rule 144:

 

(A)          the transfer is occurring
after [date one year after the latest date of issuance of any of the Specified
Securities] and is being effected in accordance with the applicable amount,
manner of sale and notice requirements of Rule 144; or

 

(B)           the transfer is occurring
after [date two years after the latest date of issuance of any of the Specified
Securities] and the Owner is not, and during the preceding three months has not
been, an Affiliate of the Company.

 

C-2-2

 

This certificate and the statements contained herein
are made for your benefit and the benefit of the Company and the Initial
Purchasers under the Purchase Agreement.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print
  the name of the Undersigned, as such term is

  
	
   

  	
  defined
  in the second paragraph of this certificate.)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(If the Undersigned is a corporation, partnership or
fiduciary, the title of the person signing on behalf of the Undersigned must be
stated.)

 

C-2-3

 

EXHIBIT C-3

 

FORM OF TRANSFER CERTIFICATE —

REGULATION S GLOBAL SECURITY TO

RESTRICTED GLOBAL SECURITY

 

(Transfers to QIBs Pursuant to Sections 2.16(a)(iv) of the
Indenture)

 

Wells
Fargo Bank, National Association

Sixth
Street and Marquette Avenue

MAC
N9303-120

Minneapolis,
Minnesota 55479

Attention:
Corporate Trust Services

 

Huntsman
International LLC

500
Huntsman Way

Salt
Lake City, Utah 84108

Attention:  Secretary

 

Re:          Huntsman International LLC 85/8% Senior Subordinated Notes

due 2020 (the “Securities”)

 

Reference is hereby made to the Indenture, dated as
of March 17, 2010 between the Company, the Guarantors named therein and
Wells Fargo Bank, National Association, as trustee, (the “Indenture”).  Terms used but not defined herein and defined
in Regulation S under the U.S. Securities Act of 1933 (the “Securities Act”) or
in the Indenture shall have the meanings given to them in Regulation S or the
Indenture, as the case may be.

 

This certificate relates to
U.S.$            
principal amount of Securities, which are evidenced by the following
certificate(s) (the “Specified Securities”):

 

[CUSIP] [ISIN] No(s).

 

CERTIFICATE No(s).

 

The person in whose name this certificate is
executed below (the “Undersigned”) hereby certifies that either (i) it is
the sole beneficial owner of the Specified Securities or (ii) it is acting
on behalf of all the beneficial owners of the Specified Securities and is duly
authorized by them to do so.  Such
beneficial owner or owners are referred to herein collectively as the “Owner”.  If the Specified Securities are represented
by a Global Security, they are held through the Depositary or an Agent Member
in the name of the Undersigned, as or on behalf of the Owner.

 

The Owner has requested that the Specified
Securities be transferred to a person (the “Transferee”) who will take delivery
in the form of an interest in the Restricted Global Security.  In connection with such transfer, the Owner
hereby certifies that such transfer is being effected in accordance with Rule 144A
under the Securities Act and with all applicable securities 

 

C-3-1

 

laws of the states of the
United States and other jurisdictions. 
Accordingly, the Owner hereby further certifies as follows:

 

(1)           the Specified Securities are being transferred to a
person that the Owner and any person acting on its behalf reasonably believe is
a “qualified institutional buyer” within the meaning of Rule 144A,
acquiring for its own account or for the account of a qualified institutional
buyer; and

 

(2)           the Owner and any person acting on its behalf have
taken reasonable steps to ensure that the Transferee is aware that the Owner
may be relying on Rule 144A in connection with the transfer.

 

This certificate and the statements contained herein
are made for your benefit and the benefit of the Company and the Initial
Purchasers under the Purchase Agreement.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print
  the name of the Undersigned, as such term is

  
	
   

  	
  defined
  in the second paragraph of this certificate.)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(If the Undersigned is a corporation, partnership or
fiduciary, the title of the person signing on behalf of the Undersigned must be
stated.)

 

C-3-2

 

EXHIBIT D

 

FORM OF CERTIFICATE TO BE

DELIVERED IN CONNECTION WITH

TRANSFERS TO INSTITUTIONAL ACCREDITED INVESTORS

 

(Transfers Pursuant to Section 2.17(a) of the Indenture)

 

Wells
Fargo Bank, National Association

Sixth
Street and Marquette Avenue

MAC
N9303-120

Minneapolis,
Minnesota 55479

Attention:
Corporate Trust Services

 

Huntsman
International LLC

500
Huntsman Way

Salt
Lake City, Utah 84108

Attention:  Secretary

 

Re:          Huntsman International LLC 85/8% Senior Subordinated Notes

due 2020 (the “Securities”)

 

Ladies and Gentlemen:

 

Reference is hereby made to the Indenture, dated as
of March 17, 2010 between the Company and Wells Fargo Bank, National
Association, as trustee (the “Indenture”). 
Terms used but not defined herein have the meanings given to them in the
Indenture.

 

This certificate relates to U.S.
$         principal amount of
Securities, which are evidenced by the following certificate(s):

 

1.  We
understand that the Securities have not been registered under the Securities
Act of 1933, as amended (the “Securities Act”), and may not be sold except as
permitted in the following sentence.  We
understand and agree, on our own behalf and on behalf of any accounts for which
we are acting as hereinafter stated, (x) that such Securities are being
offered only in a transaction not involving any public offering within one year
after the date of the original issuance of the Securities and, such Securities
may be resold, pledged or transferred only (i) to the Company, (ii) so
long as the Securities are eligible for resale pursuant to Rule 144A under
the Securities Act (“Rule 144A”), to a person whom we reasonably believe
is a “qualified institution buyer” (as defined in Rule 144A) (“QIB”) that
purchases for its own account or for the account of a QIB to whom notice is
given that the resale, pledge or transfer is being made in reliance on Rule 144A
(as indicated by the box checked by the transferor on the Certificate of
Transfer on the reverse of the certificate for the Securities), (iii) in
an offshore transaction in accordance with Regulation S under the Securities
Act (as indicated by the box checked by the transferor on the Certificate of
Transfer on the reverse of the Note if the Note is not in book-entry form),
and, if such transfer is being effected by certain transferors prior to the
expiration of the “40-day distribution compliance period” (within the meaning
of Rule 903(b)(2) of Regulation S under the 

 

D-1

 

Securities Act), a
certificate that may be obtained from the Trustee is delivered by the transferee,
(iv) to an institution that is an “accredited investor” as defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act (as indicated by the box
checked by the transferor on the Certificate of Transfer on the reverse of the
certificate for the Securities) which has certified to the Company and the
Trustee for the Securities that it is such an accredited investor and is
acquiring the Securities for investment purposes and not for distribution
(provided that no Securities purchased from a foreign purchaser or from any
person other than a QIB or an institutional accredited investor pursuant to
this clause (iii) shall be permitted to transfer any Securities so
purchased to an institutional accredited investor pursuant to this clause (iv) prior
to the expiration of the “applicable restricted period” (within the meaning of
Regulation S under the Securities Act), (v) pursuant to an exemption from
registration under the Securities Act provided by Rule 144 (if applicable)
under the Securities Act, or (vi) pursuant to an effective registration
statement under the Securities Act, in each case in accordance with any
applicable securities laws of any state of the United States, and we will
notify any purchaser of the Securities from us of the above resale restriction,
if then applicable.  We further understand
that in connection with any transfer of the Securities by us that the Company
and the Trustee for the Securities may request, and if so requested we will
furnish, such certificates, legal opinions and other information as they may reasonably
require to confirm that any such transfer complies with the foregoing restrictions.

 

2.  We are
able to fend for ourselves in the transactions contemplated by this Offering
Circular, we have such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of our investment
in the Securities, and we and any accounts for which we are acting are each
able to bear the economic risk of our or its investment and can afford the
complete loss of such investment.

 

3.  We
understand that the Company and others will rely upon the truth and accuracy of
the foregoing acknowledgments, representations and agreements and we agree that
if any of the acknowledgments, representations and warranties deemed to have
been made by us by our purchase of Securities, for our own account or of one or
more accounts as to each of which we exercise sole investment discretion, are
no longer accurate, we shall promptly notify the Company.

 

4.  We are
acquiring the Securities purchased by us for investment purposes and not for
distribution of our own account or for one or more accounts as to each of which
we exercise sole investment discretion and we are or such account is an
institutional “accredited investor” (as defined in rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act).

 

5.  You are
entitled to rely upon this letter and you are irrevocably authorized to produce
this letter or a copy hereof to any interested party in any administrative or
legal proceeding or official inquiry with respect to the matters covered
hereby.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Name of Purchaser)

  

 

D-2

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  

 

D-3

 

EXHIBIT E

 

GUARANTEE

 

For value received, the undersigned hereby
unconditionally guarantees, as principal obligor and not only as a surety, to
the Holder of this Note the payments of principal of, premium, if any, and
interest on this Note in the amounts and at the times when due and interest on
the overdue principal, premium, if any, and interest, if any, of this Note, if
lawful, and the payment or performance of all other obligations of the Company
under the Indenture (as defined below) or the Notes, to the Holder of this Note
and the Trustee, all in accordance with and subject to the terms and
limitations of this Note, Article Eleven of the Indenture and this
Guarantee.  This Guarantee will become
effective in accordance with Article Eleven of the Indenture and its terms
shall be evidenced therein.  The validity
and enforceability of any Guarantee shall not be affected by the fact that it
is not affixed to any particular Note.

 

Capitalized terms used but not defined herein shall
have the meanings ascribed to them in the Indenture dated as of March 17,
2010, among HUNTSMAN INTERNATIONAL LLC as issuer (the “Company”), each of the
Guarantors named therein and Wells Fargo Bank, National Association, as trustee
(the “Trustee”), as amended or supplemented (the “Indenture”).

 

The obligations of the undersigned to the Holders of
Notes and to the Trustee pursuant to this Guarantee and the Indenture are
expressly set forth in Article Eleven of the Indenture (including, without
limitation, the applicable limitations on this Guarantee as set forth in Section 11.02
of the Indenture and the provisions relating to the release of this Guarantee
as set forth in Section 11.04 of the Indenture) and reference is hereby
made to the Indenture for the precise terms of the Guarantee and all of the
other provisions of the Indenture to which this Guarantee relates.

 

THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  The undersigned Guarantor hereby agrees to
submit to the jurisdiction of the courts of the State of New York in any action
or proceeding arising out of or relating to this Guarantee.

 

This Guarantee is subject to release upon the terms
set forth in the Indenture.

 

E-1

 

IN WITNESS WHEREOF, each Guarantor has caused its
Guarantee to be duly executed.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
                                                                                ,

  
	
   

  	
  as
  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

E-2Exhibit
10.1

 

EXECUTION VERSION

 

HUNTSMAN INTERNATIONAL LLC

 

$350,000,000 85/8%
Senior Subordinated Notes due 2020

 

guaranteed on a senior subordinated basis as to the

payment of principal, premium,

if any, and interest by

 

AIRSTAR CORPORATION

HUNTSMAN ADVANCED MATERIALS AMERICAS LLC

HUNTSMAN ADVANCED MATERIALS LLC

HUNTSMAN AUSTRALIA INC.

HUNTSMAN CHEMICAL PURCHASING CORPORATION

HUNTSMAN ENTERPRISES, INC.

HUNTSMAN ETHYLENEAMINES LLC

HUNTSMAN FUELS LLC

HUNTSMAN INTERNATIONAL FINANCIAL LLC

HUNTSMAN INTERNATIONAL FUELS LLC

HUNTSMAN INTERNATIONAL TRADING CORPORATION

HUNTSMAN MA INVESTMENT CORPORATION

HUNTSMAN MA SERVICES CORPORATION

HUNTSMAN PETROCHEMICAL LLC

HUNTSMAN PETROCHEMICAL PURCHASING CORPORATION

HUNTSMAN PROCUREMENT CORPORATION

HUNTSMAN PROPYLENE OXIDE LLC

HUNTSMAN PURCHASING, LTD.

POLYMER MATERIALS INC.

TIOXIDE AMERICAS INC.

TIOXIDE GROUP

 

Exchange and Registration Rights Agreement

 

 

March 17, 2010

 

Goldman,
Sachs & Co.

J.P. Morgan Securities Inc.

Barclays Capital Inc.

Banc of America Securities LLC

Citigroup Global Markets Inc.

Credit Suisse Securities (USA) LLC

c/o Goldman Sachs & Co.

200
West Street

New York, New York  10004

 

Ladies
and Gentlemen:

 

Huntsman International LLC, a Delaware limited
liability company (the “Company”), proposes to issue and sell to the
Purchasers (as defined herein) upon the terms set forth in the Purchase
Agreement (as defined herein) $350,000,000 aggregate principal amount of the
Company’s 85/8% Senior Subordinated Notes
due 2020, which are guaranteed on a senior subordinated basis by each of the
guarantors listed on Schedule I hereto.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

effective and (ii) a Shelf Registration, shall
mean the time and date as of which the Commission declares the Shelf Registration
Statement effective or as of which the Shelf Registration Statement otherwise
becomes effective.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Indenture” shall mean the Indenture,
dated as of March 17, 2010, between the Company, the Guarantors and Wells
Fargo Bank, N.A., as Trustee, as the same shall be amended from time to time
relating to the Securities.

 

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

 

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

 

“Purchase Agreement” shall mean the
Purchase Agreement, dated as of March 12, 2010, among the Purchasers, the
Guarantors and the Company relating to the Securities.

 

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

 

3

 

“Registrable Securities” shall mean
the Securities; provided, however, that a
Security shall cease to be a Registrable Security when (i) in the
circumstances contemplated by Section 2(a) hereof, the Security has
been exchanged for an Exchange Security in an Exchange Offer as contemplated in
Section 2(a) hereof (provided that
any Exchange Security that, pursuant to the last two sentences of Section 2(a),
is included in a prospectus for use in connection with resales by
broker-dealers shall be deemed to be a Registrable Security with respect to
Sections 5, 6 and 9 until resale of such Security has been effected within the
120-day period referred to in Section 2(a)); (ii) in the
circumstances contemplated by Section 2(b) hereof, a Shelf
Registration Statement registering such Security under the Securities Act has
been declared or becomes effective and such Security has been sold or otherwise
transferred by the holder thereof pursuant to and in a manner contemplated by
such effective Shelf Registration Statement; (iii) such Security is sold
pursuant to Rule 144 under circumstances in which any legend borne by such
Security relating to restrictions on transferability thereof, under the
Securities Act or otherwise, is removed by the Company or pursuant to the
Indenture; (iv) such Security may be sold to the public in accordance with
Rule 144 per the person that is not an “affiliate” (as defined in Rule 144)
of the Company where no conditions of Rule 144 are then applicable (other
than the holding period requirement in paragraph (d) of Rule 144, so
long as such holding period requirement is satisfied at such time of
determination); or (v) such Security shall cease to be outstanding.

 

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

 

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

 

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

 

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

 

“Restricted Holder” shall mean (i) a
holder that is an affiliate of the Company within the meaning of Rule 405,
(ii) a holder who acquires Exchange Securities outside the ordinary course
of such holder’s business, (iii) a holder who has arrangements or
understandings with any person to participate in the Exchange Offer for the
purpose of distributing Exchange Securities and (iv) a holder that is a
broker-dealer, but only with respect to Exchange Securities received by such
broker-dealer pursuant to an Exchange Offer in exchange for Registrable
Securities acquired by the broker-dealer directly from the Company.

 

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

 

“Securities” shall mean, collectively,
the $350,000,000 in aggregate principal amount of the Company’s 85/8% Senior Subordinated Notes due 2020 to be issued
and 

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2.             Registration Under the Securities Act.

 

(a)           Except as set forth in Section 2(b) below,
the Company and the Guarantors agree to use their reasonable best efforts to
file under the Securities Act a registration statement relating to offers to
exchange (such registration statement, the “Exchange Registration Statement,”
and such offers, collectively, the “Exchange Offer”) any and all of the
Registrable Securities for a like aggregate principal amount of debt securities
issued by the Company and guaranteed by the Guarantors, which debt securities
and guarantee are substantially identical to the Securities and the related
Guarantees, respectively (and are entitled to the benefits of a trust indenture
which is substantially identical to the Indenture and which has been qualified
under the Trust Indenture Act), except that they have been registered pursuant
to an effective registration statement under the Securities Act and do not
contain provisions for registration rights or the Special Interest contemplated
in Section 2(c) below (such new debt securities and guarantee
hereinafter called “Exchange Securities”).  The Company and the Guarantors agree to use
their reasonable best efforts to cause the Exchange Registration Statement to
become effective under the Securities Act no later than December 13,
2010.  The Exchange Offer will be
registered under the Securities Act on the appropriate form and will comply
with all applicable tender offer rules and regulations under the Exchange
Act.  The Company further agrees to use
its reasonable 

 

5

 

best efforts to commence and
complete the Exchange Offer within 45 days after the date the Exchange
Registration Statement is declared effective by the Commission, hold the
Exchange Offer open for at least 20 days (or longer if required by applicable
law) and  exchange Exchange Securities for all
Registrable Securities that have been properly tendered and not withdrawn on or
prior to the expiration of the Exchange Offer. 
The Exchange Offer will be deemed to have been “completed” only if the
debt securities  and related guarantee received by
holders other than Restricted Holders in the Exchange Offer for Registrable
Securities are, upon receipt, transferable by each such holder without
restriction under the Securities Act and without material restrictions under
the blue sky or securities laws of a substantial majority of the States of the
United States of America, it being understood that broker-dealers receiving
Exchange Securities will be subject to certain prospectus delivery requirements
with respect to resale of the Exchange Securities.  The Exchange Offer shall be deemed to have
been completed upon the earlier to occur of (i) the Company having
exchanged the Exchange Securities for all outstanding Registrable Securities
pursuant to the Exchange Offer and (ii) the Company having exchanged,
pursuant to the Exchange Offer, Exchange Securities for all Registrable
Securities that have been properly tendered and not withdrawn before the
expiration of the Exchange Offer, which shall be on a date that is at least 20
days following the commencement of the Exchange Offer.  The Company and the Guarantors agree (x) to
include in the Exchange Registration Statement a prospectus for use in any
resales by any holder of Exchange Securities that is a broker-dealer and (y) to
keep such Exchange Registration Statement effective for a period (the “Resale
Period”) beginning when Exchange Securities are first issued in the
Exchange Offer and ending upon the earlier of the expiration of the 120th day
after the Exchange Offer has been completed or such time as such broker-dealers
no longer own any Registrable Securities. 
With respect to such Exchange Registration Statement, such holders shall
have the benefit of the rights of indemnification and contribution set forth in
Sections 6(a), (c), (d) and (e) hereof.

 

Each holder that participates in the Exchange Offer
will be required, as a condition to its participation in the Exchange Offer, to
represent to the Company in writing (which may be contained in the applicable
letter of transmittal) (i) that any Exchange Securities to be received by
it will be acquired in the ordinary course of its business, (ii) that at the
time of the commencement of the Exchange Offer, such holder has no arrangement
or understanding with any Person to participate in the distribution (within the
meaning of the Securities Act) of the Exchange Securities in violation of the
Securities Act, (iii) that such holder is not an “affiliate” of the
Company as such term is defined in Rule 405 promulgated under the
Securities Act, (iv) if such holder is a broker-dealer, that it is not
engaged in, and does not intend to engage in, the distribution of Exchange
Securities; and (v) if such holder is a broker-dealer that will receive
Exchange Securities for its own account in exchange for Securities that were
acquired as a result of market-making or other trading activities (an “Exchanging
Dealer”), that it will deliver a prospectus in connection with the resale
of such Exchange Securities.  A
broker-dealer that is not able to make the representation in clause (v) above
will not be permitted to participate in the Exchange Offer.

 

(b)           If on or prior to the time the
Exchange Offer is completed, any law or the existing Commission interpretations
are changed such that (i) the debt securities or the related guarantee
received by holders other than Restricted Holders in the Exchange Offer for
Registrable Securities are not or would not be, upon receipt, transferable by
each such holder without restriction under the Securities Act, (ii) for
any other reason the Exchange Offer has not 

 

6

 

been completed within 45
days after December 13, 2010 or (iii) the Exchange Offer is not
available to any holder of the Securities by reason of U.S. law or Commission
policy (other than due solely to the status of such holder as an affiliate of
the Company within the meaning of the Securities Act or as an Exchanging
Dealer), the Company and the Guarantors shall, in lieu of (or, in the case of
clause (iii), in addition to) conducting the Exchange Offer contemplated by Section 2(a),
file under the Securities Act as soon as practicable, and cause to become or be
declared effective no later of 90 days after the time such obligation to file
arises, a “shelf” registration statement providing for the registration of, and
the sale on a continuous or delayed basis by the holders of, all of the Registrable
Securities, pursuant to Rule 415 or any similar rule that may be
adopted by the Commission (such filing, the “Shelf Registration” and
such registration statement, the “Shelf Registration Statement”).  The Company and the Guarantors agree to use
its reasonable best efforts (x) to cause the Shelf Registration Statement
to become or be declared effective and to keep such Shelf Registration
Statement continuously effective for a period ending on the earlier of the
second anniversary of the Effective Time or such time as there are no longer
any Registrable Securities outstanding; provided, however, that (I) no holder shall be entitled to be
named as a selling securityholder in the Shelf Registration Statement or to use
the prospectus forming a part thereof for resales of Registrable Securities
unless such holder is an Electing Holder and (II) the Company shall be
permitted to take any action that would suspend the effectiveness of a Shelf
Registration Statement or result in holders covered by a Shelf Registration
Statement not being able to offer and sell such Securities if (i) such
action is required by law or (ii) such action is taken by the Company in
good faith and for valid business reasons involving a material undisclosed
event, and (y) after the Effective Time of the Shelf Registration
Statement, within 30 days following the request of any holder of Registrable
Securities that is not then an Electing Holder, to take any action reasonably
necessary to enable such holder to use the prospectus forming a part thereof
for resales of Registrable Securities, including, without limitation, any
action necessary to identify such holder as a selling securityholder in the
Shelf Registration Statement; provided, however,
that nothing in this clause (y) shall relieve any such holder of the
obligation to return a completed and signed Notice and Questionnaire to the
Company in accordance with Section 3(d)(iii) hereof.  The Company further agrees to supplement or
make amendments to the Shelf Registration Statement, as and when required by
the rules, regulations or instructions applicable to the registration form used
by the Company for such Shelf Registration Statement or by the Securities Act
or rules and regulations thereunder for shelf registration, and the
Company agrees to furnish to each Electing Holder copies of any such supplement
or amendment prior to its being used or promptly following its filing with the
Commission.

 

(c)           In the event that (i) the
Exchange Registration Statement or Shelf Registration Statement has not become
effective or been declared effective by the Commission on or before the date on
which such registration statement is required to become or be declared
effective pursuant to Section 2(a) or 2(b), respectively, or (ii) the
Exchange Offer has not been completed within 45 business days after the initial
effective date of the Exchange Registration Statement relating to the Exchange
Offer (if the Exchange Offer is then required to be made) or (iii) any
Exchange Registration Statement or Shelf Registration Statement required by Section 2(a) or
2(b) hereof is filed and declared effective but shall thereafter either be
withdrawn by the Company or shall become subject to an effective stop order
issued pursuant to Section 8(d) of the Securities Act suspending the
effectiveness of such registration statement (except as specifically permitted
herein) without being succeeded immediately by an additional registration
statement 

 

7

 

filed and declared effective
(each such event referred to in clauses (i) through (iv), a “Registration
Default” and each period during which a Registration Default has occurred
and is continuing, a “Registration Default Period”), then, as liquidated
damages for such Registration Default, subject to the provisions of Section 9(b),
special interest (“Special Interest”), in addition to the Base Interest,
shall accrue at a per annum rate of 0.125% for the first 90 days of the
Registration Default Period, at a per annum rate of 0.25% for the second 90
days of the Registration Default Period, at a per annum rate of 0.375% for the
third 90 days of the Registration Default Period and at a per annum rate of
0.5% thereafter for the remaining portion of the Registration Default Period; provided, however, that Special Interest shall not accrue if
the failure of the Company to comply with its obligations hereunder is a result
of the failure of any of the holders, underwriters, Purchasers or placement or
sales agents to fulfill their respective obligations hereunder; and provided, further,
Special Interest shall only accrue until, but excluding, the earlier of (1) the
date on which such Registration Default has been cured or (2) the date on
which the Securities accruing such Special Interest cease to be Registrable
Securities.  Special Interest accrued for
any period shall be payable at the relevant interest payment date for such
period under the terms of the applicable series of Securities.

 

(d)           Notwithstanding the foregoing: (1) the
amount of Special Interest that accrues will not increase because more than one
Registration Default has occurred and is pending; (2) a holder of
Registrable Securities or Exchange Securities who is not entitled to the
benefits of the Shelf Registration Statement (including, but not limited to any
such holder who has not returned a completed and signed Notice and
Questionnaire to the Company in accordance with Section 3(d)(iii) hereof)
will not be entitled to Special Interest with respect to a Registration Default
that pertains to the Shelf Registration Statement; and (3) a holder of
Registrable Securities constituting an unsold allotment from the original sale
of the notes or who otherwise is not entitled to participate in the Exchange
Offer will not be entitled to the accrual of Special Interest by reason of a
Registration Default that pertains to the Exchange Offer.

 

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

 

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

 

3.             Registration Procedures.

 

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

 

8

 

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

 

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

 

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

 

(i)      use their reasonable best
efforts to prepare and file with the Commission an Exchange Registration
Statement on any form which may be utilized by the Company and the Guarantors
and which shall permit the Exchange Offer and resales of Exchange Securities by
broker-dealers during the Resale Period to be effected as contemplated by Section 2(a),
and use its best reasonable efforts to cause such Exchange Registration
Statement to become effective no later than December 13, 2010;

 

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

 

(iii)    after the Effective Time
of the Exchange Registration Statement and during the Resale Period promptly
notify each broker-dealer that has requested copies of the prospectus included
in such registration statement, and confirm such advice in writing, (A) with
respect to such Exchange Registration Statement or any post-effective
amendment, when the same has become effective, (B) of the issuance by the
Commission of any stop order suspending the effectiveness of such Exchange Registration
Statement or the initiation or threatening of any proceedings for that purpose,
(C) of the receipt by the Company of any notification with respect to the
suspension of the qualification of the Exchange Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose, or (D) at any time during the Resale Period 

 

9

 

when
a prospectus is required to be delivered under the Securities Act, that such
Exchange Registration Statement, prospectus, prospectus amendment or supplement
or post-effective amendment does not conform in all material respects to the
applicable requirements of the Securities Act and the Trust Indenture Act and
the rules and regulations of the Commission thereunder or contains an
untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing, which such notice, in
the case of clauses (B), (C) and (D) shall require any broker-dealer
to suspend the use of such prospectus until further notice;

 

(iv)    in the event that the
Company and the Guarantors would be required, pursuant to Section 3(c)(iii)(D) above,
to notify any broker-dealers holding Exchange Securities, prepare and furnish
to each such holder a reasonable number of copies of a prospectus supplemented
or amended so that, as thereafter delivered to purchasers of such Exchange
Securities during the Resale Period, such prospectus shall conform in all
material respects to the applicable requirements of the Securities Act and the
Trust Indenture Act and the rules and regulations of the Commission
thereunder and shall not contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing; provided, however, the Company shall not be required to
amend or supplement such prospectus if (i) not permitted by law or (ii) the
Company in good faith and for valid business reasons determines that to do so
would involve disclosing a material undisclosed event;

 

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

 

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

 

10

 

(vii)   provide an ISIN and
a CUSIP number for all Exchange Securities, not later than the applicable Effective
Time; and

 

(viii)  comply with all applicable rules and regulations of
the Commission, and make generally available to its securityholders as soon as
practicable but no later than 18 months after the effective date of such
Exchange Registration Statement, an earning statement of the Company and its
subsidiaries complying with Section 11(a) of the Securities Act
(including, at the option of the Company, Rule 158 thereunder).

 

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

 

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

 

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

 

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

 

(iv)    after the Effective Time
of the Shelf Registration Statement, except as permitted hereunder, as soon as
reasonably practicable prepare and file 

 

11

 

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

 

(v)     comply with the provisions
of the Securities Act with respect to the disposition of all of the Registrable
Securities covered by such Shelf Registration Statement in accordance with the
intended methods of disposition by the Electing Holders provided for in such
Shelf Registration Statement;

 

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

 

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

 

12

 

with
applicable requirements of the federal securities laws and the rules and
regulations of the Commission and does not contain an untrue statement of a
material fact or omit to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading in light of
the circumstances then existing;

 

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

 

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

 

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

 

13

 

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

 

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

 

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

 

14

 

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

 

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

 

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

 

15

 

governmental
approvals required to be obtained in connection with the Shelf Registration,
the offering and sale of the Registrable Securities, this Exchange and
Registration Rights Agreement or any agreement of the type referred to in Section 3(d)(xiv)
hereof, except such approvals as may have been obtained or may be required
under state securities or blue sky laws; the material compliance as to form of
such Shelf Registration Statement and any documents incorporated by reference
therein and of the Indenture with the requirements of the Securities Act and
the Trust Indenture Act and the rules and regulations of the Commission
thereunder, respectively; and, if addressed to any underwriters, as of the date
of the opinion and of the Shelf Registration Statement or most recent
post-effective amendment thereto, as the case may be, the absence from such
Shelf Registration Statement and the prospectus included therein, as then
amended or supplemented, and from the documents incorporated by reference
therein (in each case other than the financial statements and other financial
or accounting information contained therein) of an untrue statement of a
material fact or the omission to state therein a material fact necessary to
make the statements therein not misleading (in the case of such documents, in
the light of the circumstances existing at the time that such documents were
filed with the Commission under the Exchange Act)); (C) obtain a “cold
comfort” letter or letters from the independent certified public accountants of
the Company addressed to the selling Electing Holders, the placement or sales
agent, if any, therefor or the underwriters, if any, thereof, dated (i) the
effective date of such Shelf Registration Statement and (ii) the effective
date of any prospectus supplement to the prospectus included in such Shelf
Registration Statement or post-effective amendment to such Shelf Registration
Statement which includes unaudited or audited financial statements as of a date
or for a period subsequent to that of the latest such statements included in
such prospectus (and, if such Shelf Registration Statement contemplates an
underwritten offering pursuant to any prospectus supplement to the prospectus
included in such Shelf Registration Statement or post-effective amendment to
such Shelf Registration Statement which includes unaudited or audited financial
statements as of a date or for a period subsequent to that of the latest such
statements included in such prospectus, dated the date of the closing under the
underwriting agreement relating thereto), such letter or letters to be in customary
form and covering such matters of the type customarily covered by letters of
such type; and (D) deliver such documents and certificates, including
officers’ certificates, as may be reasonably requested by any Electing Holders
of at least 20% in aggregate principal amount of the Registrable Securities at
the time outstanding or the placement or sales agent, if any, therefor and the
managing underwriters, if any, thereof to evidence the accuracy of the
representations and warranties made pursuant to clause (A) above or those
contained in Section 5(a) hereof and the compliance with or
satisfaction of any agreements or conditions contained in the underwriting
agreement or other agreement entered into by the Company or the Guarantors;

 

(xvi)  notify in writing each
holder of Registrable Securities of any proposal by the Company to amend or
waive any provision of this Exchange and Registration Rights Agreement in any
material respect pursuant to Section 9(h) 

 

16

 

hereof
and of any such amendment or waiver effected pursuant thereto, each of which
notices shall contain the text of the amendment or waiver proposed or effected,
as the case may be;

 

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

 

(xviii) comply with all applicable rules and regulations of the
Commission, and make generally available to its securityholders as soon as
practicable but in any event not later than 18 months after the effective date
of such Shelf Registration Statement, an earning statement of the Company and
its subsidiaries complying with Section 11(a) of the Securities Act
(including, at the option of the Company, Rule 158 thereunder).

 

(e)           In the event that the Company would be required, pursuant
to Section 3(d)(viii)(D) above, to notify the Electing Holders, the
placement or sales agent, if any, therefor and the managing underwriters, if
any, thereof, the Company shall as soon as reasonably practicable prepare and
furnish to each of the Electing Holders, to each placement or sales agent, if
any, and to each such underwriter, if any, a reasonable number of copies of a
prospectus supplemented or amended so that, as thereafter delivered to
purchasers of Registrable Securities, such prospectus shall conform in all
material respects to the applicable requirements of the Securities Act and the
Trust Indenture Act and the rules and regulations of the Commission
thereunder and shall not contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing; provided, however, the
Company shall not be required to amend or supplement such prospectus if (i) not
permitted by law or (ii) the Company in good faith and for valid business
reasons determines that to do so would involve disclosing a material
undisclosed event.  Each Electing Holder
agrees that upon receipt of any notice from the Company pursuant to Section 3(d)(viii)(D) hereof,
such Electing Holder shall forthwith discontinue the disposition of Registrable
Securities pursuant to the Shelf Registration Statement applicable to such
Registrable Securities until such Electing Holder shall have received copies of
such amended or supplemented prospectus, and if so directed by the Company,
such Electing Holder shall deliver to the Company (at the Company’s expense)
all copies, other than permanent file copies, then in such Electing Holder’s
possession of the prospectus covering such Registrable Securities at the time
of receipt of such notice.

 

(f)            In the event of a Shelf Registration, in addition to the
information required to be provided by each Electing Holder in its Notice and
Questionnaire, the Company 

 

17

 

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

 

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

 

4.             Registration Expenses.

 

The Company agrees to bear and to pay or cause to be
paid promptly all expenses incident to the Company’s performance of or compliance
with this Exchange and Registration Rights Agreement, including (a) all
Commission and any FINRA registration, filing and review fees and expenses, (b) all
fees and expenses in connection with the qualification of the Securities for
offering and sale under the State securities and blue sky laws referred to in Section 3(d)(xii)
hereof under the laws of such jurisdictions as any managing underwriters or the
Electing Holders may designate, including any fees and disbursements of one
counsel for the Electing Holders or underwriters in connection with such
qualification, (c) all expenses relating to the preparation, printing,
production, distribution and reproduction of each registration statement
required to be filed hereunder, each prospectus included therein or prepared
for distribution pursuant hereto, each amendment or supplement to the
foregoing, and the expenses of preparing the Securities for delivery, (d) messenger,
telephone and delivery expenses relating to the preparation of documents
referred in clause (c) above, (e) fees and expenses of the Trustee
under the Indenture, (f) internal expenses (including all salaries and
expenses of the Company’s officers and employees performing legal or accounting
duties), (g) fees, disbursements and expenses of counsel and independent
certified public accountants of the Company (including the expenses of any
opinions or “cold comfort” letters required by or incident to such performance
and compliance), (h) reasonable fees, disbursements and expenses of one
counsel for the Electing Holders retained in connection with a Shelf
Registration, as selected by the Electing Holders of at least a majority in
aggregate principal amount of the Registrable Securities held by Electing
Holders (which counsel shall be reasonably satisfactory to the Company), (j) any
fees charged by 

 

18

 

securities rating services
for rating the Securities, and (k) fees, expenses and disbursements of any
other persons, including special experts, retained by the Company in connection
with such registration (collectively, the “Registration Expenses”).  To the extent that any Registration Expenses
are incurred, assumed or paid by any holder of Registrable Securities or any
placement or sales agent therefor or underwriter thereof, the Company shall
reimburse such person for the full amount of the reasonable Registration
Expenses so incurred, assumed or paid promptly after receipt of a request
therefor.  Notwithstanding the foregoing,
the holders of the Registrable Securities being registered shall pay all agency
fees and commissions and underwriting discounts and commissions attributable to
the sale of such Registrable Securities and the fees and disbursements of any
counsel or other advisors or experts retained by such holders (severally or
jointly), other than the counsel and experts specifically referred to above.

 

5.             Representations and Warranties.

 

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

 

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

 

(b)           Any documents incorporated by reference in any prospectus
referred to in Section 5(a) hereof, when they become or became
effective or are or were filed with the Commission, as the case may be, will
conform or conformed in all material respects to the requirements of the
Securities Act or the Exchange Act, as applicable, and, as of such effective or
filing date, none of such documents will contain or contained an untrue
statement of a material fact or will omit or omitted to state a material fact
required to be 

 

19

 

stated therein or necessary to make the statements therein not
misleading; provided, however, that this
representation and warranty shall not apply to any statements or omissions made
in reliance upon and in conformity with information furnished in writing to the
Company by a holder of Registrable Securities, a placement or sales agent or an
underwriter expressly for use therein.

 

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

 

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

 

6.             Indemnification.

 

(a)           Indemnification by the
Company and the Guarantors.  The
Company and the Guarantors, jointly and severally, will indemnify and hold
harmless each broker dealer selling Exchange Securities during the Resale
Period, and each of the Electing Holders of Registrable Securities included in
a Shelf Registration Statement against any losses, claims, damages or liabilities,
joint or several, to which such holder may become subject under the Securities
Act or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon an untrue statement
or alleged untrue statement of a material fact contained in any Exchange
Registration Statement or Shelf Registration Statement, as the case may be,
under which such Registrable Securities were registered under the Securities
Act, or any preliminary, final or summary prospectus contained therein or furnished
by the Company to any such holder, or any amendment or supplement thereto, or
arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be 

 

20

 

stated therein or necessary
to make the statements therein not misleading, and will reimburse such holder
for any out-of-pocket legal or other expenses reasonably incurred by them in
connection with investigating or defending any such action or claim as such
expenses are incurred; provided, however,
that (i) neither the Company nor any Guarantor shall be liable to any such
person in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in such registration statement,
or preliminary, final or summary prospectus, or amendment or supplement
thereto, in reliance upon and in conformity with written information furnished
to the Company by any holder, placement or sales agent or underwriter expressly
for use therein  and (ii) such
indemnity with respect to any preliminary prospectus shall not inure to the
benefit of any holder, placement agent or underwriter (or any person
controlling such person) to the extent that any loss, claim, damage or
liability of such person results from the fact that such person sold Securities
to a person as to whom it shall be established that there was not sent or given,
a copy of the final prospectus (or the final prospectus as amended or supplemented)
at or prior to the confirmation of the sale of such Securities to such person
if (x) the Company has previously furnished copies thereof in sufficient
quantity to such indemnified person and the loss, claim, damage or liability of
such indemnified person results from an untrue statement or omission of a
material fact contained in such preliminary prospectus which was corrected in
the final prospectus (or the final prospectus as amended or supplemented) and (y) such
loss, liability, claim, damage or expense would have been eliminated by the
delivery of such corrected final prospectus or the final prospectus as then
amended or supplemented.

 

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

 

21

 

(c)           Notices of Claims,
Etc.  Promptly after receipt
by an indemnified party under Section 6(a) or Section 6(b) above
of written notice of the commencement of any action, such indemnified party
shall, if a claim in respect thereof is to be made against an indemnifying
party pursuant to the indemnification provisions of or contemplated by this Section 6,
notify such indemnifying party in writing of the commencement of such action;
but the omission so to notify the indemnifying party shall not relieve it from
any liability which it may have to any indemnified party otherwise than under
the indemnification provisions of or contemplated by Section 6(a) or
6(b) above.  In case any such action
shall be brought against any indemnified party and it shall notify an indemnifying
party of the commencement thereof, such indemnifying party shall be entitled to
participate therein and, to the extent that it shall wish, jointly with any
other indemnifying party similarly notified, to assume the defense thereof,
with counsel reasonably satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the
indemnifying party), and, after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, such
indemnifying party shall not be liable to such indemnified party for any legal
expenses of other counsel or any other expenses, in each case subsequently
incurred by such indemnified party, in connection with the defense thereof other
than reasonable costs of investigation. 
In no event shall the indemnifying parties be liable for fees and
expenses of more than one counsel (in addition to any local counsel) separate
from their own counsel for all indemnified parties in connection with any one
action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances.  No indemnifying party shall, without the
written consent of the indemnified party, effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or
threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or
potential party to such action or claim) unless such settlement, compromise or
judgment (i) includes an unconditional release of the indemnified party
from all liability arising out of such action or claim and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act by or on behalf of any indemnified party. 
No indemnifying party shall be liable under this Section 6(c) for
any settlement of any claim or action effected without its consent, which
consent shall not be unreasonably withheld.

 

(d)           Contribution.  If for any reason the
indemnification provisions contemplated by Section 6(a) or Section 6(b) above
are unavailable to or insufficient to hold harmless an indemnified party in respect
of any losses, claims, damages or liabilities (or actions in respect thereof)
referred to therein, then each indemnifying party shall contribute to the
amount paid or payable by such indemnified party as a result of such losses,
claims, damages or liabilities (or actions in respect thereof) in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party and the indemnified party in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities (or actions in
respect thereof), as well as any other relevant equitable considerations.  The relative fault of such indemnifying party
and indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact relates to information supplied by
such indemnifying party or by such indemnified party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.  The parties
hereto agree that it would not be just and equitable if contributions pursuant
to this Section 6(d) were determined by pro rata allocation (even if
the holders or any agents or underwriters or all of them were treated 

 

22

 

as one entity for such
purpose) or by any other method of allocation which does not take account of
the equitable considerations referred to in this Section 6(d).  The amount paid or payable by an indemnified
party as a result of the losses, claims, damages, or liabilities (or actions in
respect thereof) referred to above shall be deemed to include any legal or
other fees or expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim.  Notwithstanding the provisions of this Section 6(d),
no holder shall be required to contribute any amount in excess of the amount by
which the proceeds received by such holder from the sale of any Registrable Securities
(after deducting any fees, discounts and commissions applicable thereto)
exceeds the amount of any damages which such holder has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission, and no underwriter shall be required to contribute any amount
in excess of the amount by which the total price at which the Registrable
Securities underwritten by it and distributed to the public were offered to the
public exceeds the amount of any damages which such underwriter has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission.  No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.  The holders’ and any underwriters’
obligations in this Section 6(d) to contribute shall be several in
proportion to the principal amount of Registrable Securities registered or
underwritten, as the case may be, by them and not joint.

 

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

 

7.             Underwritten Offerings.

 

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

 

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

 

23

 

attorney, indemnities,
underwriting agreements and other documents reasonably required under the terms
of such underwriting arrangements.

 

8.             Rule 144.

 

The Company covenants to the holders of Registrable
Securities that to the extent it shall be required to do so under the Exchange
Act, the Company shall timely file the reports required to be filed by it under
the Exchange Act or the Securities Act (including the reports under Sections 13
and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144
adopted by the Commission under the Securities Act) and the rules and
regulations adopted by the Commission thereunder, and shall take such further
action as any holder of Registrable Securities may reasonably request, all to
the extent required from time to time to enable such holder to sell Registrable
Securities without registration under the Securities Act within the limitations
of the exemption provided by Rule 144 under the Securities Act, as such Rule may
be amended from time to time, or any similar or successor rule or
regulation hereafter adopted by the Commission. 
Upon the request of any holder of Registrable Securities in connection
with that holder’s sale pursuant to Rule 144, the Company shall deliver to
such holder a written statement as to whether it has complied with such
requirements.

 

9.             Miscellaneous.

 

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

 

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

 

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

 

24

 

(d)           Parties in Interest.  All the terms and provisions of this Exchange
and Registration Rights Agreement shall be binding upon, shall inure to the
benefit of and shall be enforceable by the parties hereto and the holders from
time to time of the Registrable Securities and the respective successors and
assigns of the parties hereto and such holders. 
In the event that any transferee of any holder of Registrable Securities
shall acquire Registrable Securities, in any manner, whether by gift, bequest,
purchase, operation of law or otherwise, such transferee shall, without any
further writing or action of any kind, be deemed a beneficiary hereof for all
purposes and such Registrable Securities shall be held subject to all of the
terms of this Exchange and Registration Rights Agreement, and by taking and
holding such Registrable Securities such transferee shall be entitled to
receive the benefits of, and be conclusively deemed to have agreed to be bound
by all of the applicable terms and provisions of this Exchange and Registration
Rights Agreement.  If the Company shall
so request, any such successor, assign or transferee shall agree in writing to
acquire and hold the Registrable Securities subject to all of the applicable
terms hereof.

 

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

 

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

 

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

 

(h)           Entire Agreement;
Amendments.  This Exchange and
Registration Rights Agreement and the other writings referred to herein
(including the Indenture and the form of Securities) or delivered pursuant
hereto which form a part hereof contain the entire understanding of the parties
with respect to its subject matter.  This
Exchange and Registration Rights Agreement supersedes all prior agreements and
understandings between the parties with respect to its subject matter.  This Exchange and Registration Rights
Agreement may be amended and the observance of any term of this Exchange and
Registration Rights Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively) only by a
written instrument duly executed by the Company and the holders of at least a
majority in aggregate principal amount of the Registrable Securities at the
time outstanding.  Each holder of any of
the Registrable Securities at the time or thereafter outstanding shall be bound
by any amendment or waiver effected pursuant to this Section 9(h), 

 

25

 

whether or not any notice,
writing or marking indicating such amendment or waiver appears on such
Registrable Securities or is delivered to such holder.

 

(i)            Inspection.  For so long as this Exchange and Registration
Rights Agreement shall be in effect, this Exchange and Registration Rights
Agreement and a complete list of the names and addresses of all the holders of
Registrable Securities shall be made available for inspection and copying on
any business day by any holder of Registrable Securities for proper purposes
only (which shall include any purpose related to the rights of the holders of
Registrable Securities under the Securities, the Indenture and this Exchange
and Registration Rights Agreement) at the offices of the Trustee under the Indenture.

 

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

 

(k)           Severability.  If any
provision of this Exchange and Registration Rights Agreement, or the
application thereof in any circumstances, is held to be invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of such provision in every other respect and of the remaining
provisions contained in this Exchange and Registration Rights Agreement shall
not be affected or impaired thereby.

 

26

 

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

 

 

Very truly yours,

 

 

HUNTSMAN INTERNATIONAL LLC

 

 

	
  By:

  	
  /s/ John R. Heskett

  	
   

  
	
   

  	
  Name: John R. Heskett

  	
   

  
	
   

  	
  Title:  Vice President, Planning and Treasurer

  	
   

  

 

 

	
   

  	
  GUARANTORS

  
	
   

  	
   

  
	
   

  	
  AIRSTAR
  CORPORATION

  
	
   

  	
  HUNTSMAN
  ADVANCED MATERIALS AMERICAS LLC

  
	
   

  	
  HUNTSMAN
  ADVANCED MATERIALS LLC

  
	
   

  	
  HUNTSMAN
  AUSTRALIA INC.

  
	
   

  	
  HUNTSMAN
  CHEMICAL PURCHASING CORPORATION

  
	
   

  	
  HUNTSMAN
  ENTERPRISES, INC.

  
	
   

  	
  HUNTSMAN
  ETHYLENEAMINES LLC

  
	
   

  	
  HUNTSMAN
  FUELS LLC

  
	
   

  	
  HUNTSMAN
  INTERNATIONAL FINANCIAL LLC

  
	
   

  	
  HUNTSMAN
  INTERNATIONAL FUELS LLC

  
	
   

  	
  HUNTSMAN
  INTERNATIONAL TRADING CORPORATION

  
	
   

  	
  HUNTSMAN
  MA INVESTMENT CORPORATION

  
	
   

  	
  HUNTSMAN
  MA SERVICES CORPORATION

  
	
   

  	
  HUNTSMAN
  PETROCHEMICAL LLC

  
	
   

  	
  HUNTSMAN PETROCHEMICAL PURCHASING CORPORATION

  
	
   

  	
  HUNTSMAN
  PROCUREMENT CORPORATION

  
	
   

  	
  HUNTSMAN
  PROPYLENE OXIDE LLC

  
	
   

  	
  HUNTSMAN
  PURCHASING, LTD.

  
	
   

  	
  By: HUNTSMAN PROCUREMENT CORPORATION, its General Partner

  
	
   

  	
  POLYMER MATERIALS INC.

  

 

	
   

  	
  By:

  	
  /s/ John R. Heskett

  
	
   

  	
   

  	
  Name: John R. Heskett

  
	
   

  	
   

  	
  Title: Vice President, Planning and Treasurer

  

 

 

	
  Executed
  as a Deed by 

  	
  TIOXIDE
  AMERICAS INC.

  
	
  John
  R. Heskett

  	
   

  
	
  for
  and on behalf of 

  	
   

  
	
  Tioxide
  Americas Inc 

  	
  By:

  	
  /s/
  John R. Heskett

  
	
  in
  the presence of 

  	
   

  	
  Name:
  John R. Heskett 

  
	
   

  	
   

  	
  Title:
  Vice President, Planning and Treasurer

  
	
  /s/
  Michelle Fujinami

  	
   

  	
   

  
	
  Witness

  	
   

  
				

 

2

 

	
   

  	
  TIOXIDE GROUP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mike Dixon

  
	
   

  	
   

  	
  Name: Mike Dixon

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Maughan

  
	
   

  	
   

  	
  Name: Michael Maughan

  
	
   

  	
   

  	
  Title: Director

  

 

 

	
  Accepted
  as of the date hereof:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  GOLDMAN,
  SACHS & CO.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Goldman, Sachs & Co.

  	
   

  
	
   

  	
  Name:
  Goldman, Sachs & Co.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  J.P.
  MORGAN SECURITIES INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Jack D. Smith

  	
   

  
	
   

  	
  Name:
  Jack D. Smith

  	
   

  
	
   

  	
  Title:
  Executive Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BARCLAYS
  CAPITAL INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Paul Cugno

  	
   

  
	
   

  	
  Name:
  Paul Cugno

  	
   

  
	
   

  	
  Title:
  Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BANC
  OF AMERICA SECURITIES LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  John C. Cokinos

  	
   

  
	
   

  	
  Name:
  John C. Cokinos

  	
   

  
	
   

  	
  Title:
  Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  CITIGROUP
  GLOBAL MARKETS INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Barbara R. Matas

  	
   

  
	
   

  	
  Name:
  Barbara R. Matas

  	
   

  
	
   

  	
  Title:
  Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  CREDIT
  SUISSE SECURITIES (USA) LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Timothy Hunt

  	
   

  
	
   

  	
  Name: Timothy Hunt

  	
   

  
	
   

  	
  Title: Director

  	
   

  

 

2

 

SCHEDULE I

 

	
  GUARANTORS

  	
   

  	
  JURISDICTION

  OF

  ORGANIZATION

  
	
  Airstar
  Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Advanced Materials Americas LLC

  	
   

  	
  Delaware

  
	
  Huntsman
  Advanced Materials LLC

  	
   

  	
  Delaware

  
	
  Huntsman
  Australia Inc.

  	
   

  	
  Utah

  
	
  Huntsman
  Chemical Purchasing Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Enterprises, Inc.

  	
   

  	
  Utah

  
	
  Huntsman
  Ethyleneamines LLC

  	
   

  	
  Texas

  
	
  Huntsman
  Fuels LLC

  	
   

  	
  Texas

  
	
  Huntsman
  International Financial LLC

  	
   

  	
  Delaware

  
	
  Huntsman
  International Fuels LLC

  	
   

  	
  Texas

  
	
  Huntsman
  International Trading Corporation

  	
   

  	
  Delaware

  
	
  Huntsman
  MA Investment Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  MA Services Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Petrochemical LLC

  	
   

  	
  Delaware

  
	
  Huntsman
  Petrochemical Purchasing Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Procurement Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Propylene Oxide LLC

  	
   

  	
  Texas

  
	
  Huntsman
  Purchasing, Ltd.

  	
   

  	
  Utah

  
	
  Polymer
  Materials Inc.

  	
   

  	
  Utah

  
	
  Tioxide
  Americas Inc.

  	
   

  	
  Cayman Islands

  
	
  Tioxide
  Group

  	
   

  	
  United Kingdom

  

 

3

 

Exhibit A

 

Huntsman International LLC

 

INSTRUCTION TO DTC PARTICIPANTS

 

(Date of Mailing)

 

URGENT - IMMEDIATE ATTENTION REQUESTED

 

DEADLINE FOR RESPONSE:  [DATE]
*

 

The Depository Trust Company (“DTC”)
has identified you as a DTC Participant through which beneficial interests in
the Huntsman International LLC (the “Company”) 85/8% Senior Subordinated Notes due 2020 (the “Securities”)
are held.

 

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

 

It is important that beneficial
owners of the Securities receive a copy of the enclosed materials as soon as
possible as their rights to have the Securities included in
the registration statement depend upon their returning the Notice and
Questionnaire by [Deadline For Response].  Please forward a copy of the enclosed
documents to each beneficial owner that holds interests in the Securities
through you.  If you require more copies
of the enclosed materials or have any questions pertaining to this matter,
please contact Huntsman International LLC, 500 Huntsman Way, Salt Lake City,
Utah 84108, (801) 532-5200.

 

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

 

 

Huntsman International LLC

 

Notice of Registration Statement

and

Selling Securityholder Questionnaire

 

(Date)

 

Reference is hereby made to the Exchange and
Registration Rights Agreement (the “Exchange and Registration Rights
Agreement”) among Huntsman International LLC (the “Company”), the
Guarantors named therein and the Purchasers named therein.  Pursuant to the Exchange and Registration
Rights Agreement, the Company has filed with the United States Securities and
Exchange Commission (the “Commission”) a registration statement on Form [    ] (the “Shelf Registration
Statement”) for the registration and resale under Rule 415 of the
Securities Act of 1933, as amended (the “Securities Act”), of the
Company’s 85/8% Senior Subordinated Notes
due 2020 (the “Securities”).  A
copy of the Exchange and Registration Rights Agreement has been filed as an
exhibit to the Shelf Registration Statement. 
All capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in the Exchange and Registration Rights Agreement.

 

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

 

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

 

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

 

2

 

ELECTION

 

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

 

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

 

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

 

3

 

QUESTIONNAIRE

 

	
  (1)

  	
  (a)

  	
  Full Legal Name of Selling Securityholder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                                                                                                                                                                

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                                                                                                                                                                

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
                                                                                                                                                                

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  Address for Notices to Selling Securityholder:

  
	
   

  	
   

  
	
   

  	
                                                                         

  	
   

  
	
   

  	
                                                                         

  	
   

  
	
   

  	
                                                                         

  	
   

  
	
   

  	
  Telephone:

  	
                                                                         

  	
   

  
	
   

  	
  Fax:

  	
                                                                         

  	
   

  
	
   

  	
  Contact Person:

  	
                                                                         

  	
   

  
	
   

  	
   

  	
   

  
	
  (3)

  	
  Beneficial Ownership of Securities:

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  Principal amount of Registrable Securities beneficially owned:                                                         

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Principal amount of Securities other than Registrable Securities
  beneficially owned:

  
	
   

  	
   

  	
                                                                                                                                                               

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  (c)

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
                                                                                                                                                               

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  Beneficial Ownership of Other Securities of the Company:

  
					

 

4

 

	
   

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

  
	
   

  	
   

  
	
   

  	
  State any exceptions here:                                                                                                                                

  
	
   

  	
   

  
	
  (5)

  	
  Relationships with the Company:

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  State any exceptions here:

  
	
   

  	
   

  
	
  (6)

  	
  Plan of Distribution:

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  State any exceptions here:

  

 

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

 

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

 

5

 

By signing below, the Selling Securityholder
consents to the disclosure of the information contained herein in its answers
to Items (1) through (6) above and the inclusion of such information
in the Shelf Registration Statement and related Prospectus.  The Selling Securityholder understands that
such information will be relied upon by the Company in connection with the
preparation of the Shelf Registration Statement and related Prospectus.

 

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

 

	
   

  	
  (i)

  	
  To
  the Company:

  	
  Huntsman
  International LLC

  
	
   

  	
   

  	
   

  	
  500
  Huntsman Way

  
	
   

  	
   

  	
   

  	
  Salt
  Lake City, Utah 84108

  
	
   

  	
   

  	
   

  	
  Attention:
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  With
  a copy to:

  	
  Vinson &
  Elkins L.L.P.

  
	
   

  	
   

  	
   

  	
  2300
  First City Tower

  
	
   

  	
   

  	
   

  	
  1001
  Fannin

  
	
   

  	
   

  	
   

  	
  Houston,
  TX 77002

  
	
   

  	
   

  	
   

  	
  Attention:
  David Stone

  

 

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

 

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

 

	
  Dated:

  	
   

  	
   

  

 

	
   

  	
   

  
	
   

  	
  Selling
  Securityholder

  
	
   

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

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

6

 

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

 

	
  Huntsman
  International LLC

  
	
  500
  Huntsman Way

  
	
  Salt
  Lake City, Utah 84108

  

 

7

 

Exhibit B

 

NOTICE OF TRANSFER PURSUANT TO
REGISTRATION STATEMENT

 

[             ]

Huntsman
International LLC

[c/o        ]

[                                ]

[                                ]

	
  Attention:

  	
  Huntsman
  Administrator

  
	
   

  	
   

  
	
   

  	
  Re:

  	
  Huntsman International LLC
  (the “Company”)

  
	
   

  	
   

  	
  85/8% Senior Subordinated
  Notes due 2020

  

 

Dear
Sirs:

 

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

 

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

 

Dated:

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Name)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Authorized
  Signature)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]