Document:

Exhibit 10.2

                                Table of Contents
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Section 1 Interpretation...........................................................................................1

Section 2 Appointment of the Agents................................................................................3

Section 3 Forms of Notes; Authentication; Signatures...............................................................3

Section 4 Authorized Officers......................................................................................4

Section 5 Execution, Authentication, Delivery, Dating and Notification.............................................4

Section 6 Payments to Holders......................................................................................5

Section 7 Deposit of Moneys; Prescription..........................................................................9

Section 8 Registration of Transfer and Exchange....................................................................10

Section 9 Replacement Notes........................................................................................10

Section 10 Cancellation............................................................................................10

Section 11 Representations, Warranties and Certain Covenants of the Issuer.........................................10

Section 12 Fees and Expenses.......................................................................................10

Section 13 Rights and Liabilities of the Agents....................................................................11

Section 14 Notes Held by the Agents................................................................................13

Section 15 Duties as Information ..................................................................................13

Section 16 Duties of the Agents....................................................................................13

Section 17 Changes in Agents.......................................................................................14

Section 18 Indemnification.........................................................................................16

Section 19 Merger, Consolidation or Sale of Business by any Agent..................................................17

Section 20 Notices.................................................................................................17

Section 21 Modifications and Waivers...............................................................................19

Section 22 Judgment Currency.......................................................................................19

Section 23 Rights of Third Parties.................................................................................20

Section 24 Governing Law; Submission to Jurisdiction...............................................................20

Section 25 Counterparts............................................................................................21
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<PAGE>

                                                                  EXECUTION COPY

                           SANITEC INTERNATIONAL S.A.
                                    AS ISSUER

                                       AND

                              THE BANK OF NEW YORK
         AS PRINCIPAL PAYING AGENT, NEW YORK PAYING AGENT AND REGISTRAR

                                       AND

                     THE BANK OF NEW YORK (LUXEMBOURG) S.A.
                           AS LUXEMBOURG PAYING AGENT

                                       AND

                              THE BANK OF NEW YORK
                                   AS TRUSTEE

                            9% SENIOR NOTES DUE 2012

                       ----------------------------------

                             PAYING AGENCY AGREEMENT

                       ----------------------------------

<PAGE>

         THIS AGREEMENT is made on May 7, 2002, among SANITEC INTERNATIONAL S.A.
(the "Issuer"); THE BANK OF NEW YORK, as principal paying agent (the "Principal
Paying Agent"); THE BANK OF NEW YORK, as registrar and transfer agent (the
"Registrar"); THE BANK OF NEW YORK, as New York paying agent (the "New York
Paying Agent"); THE BANK OF NEW YORK (LUXEMBOURG) S.A., as Luxembourg paying
agent (the "Luxembourg Paying Agent" and, together with the Principal Paying
Agent and the New York Paying Agent, the "Paying Agents" which expression shall,
where the context so admits, include any successor paying agent(s) or
registrar(s) for the time being appointed); and THE BANK OF NEW YORK, as trustee
(the "Trustee", which expression includes any other trustee for the time being
of the Indenture referred to below).

         WHEREAS, the Issuer has authorised the creation and issue of
(Euro)260,000,000 in aggregate principal amount of 9% Senior Notes due 2012 (the
"Notes"); the Notes are constituted by and have the benefit of, an indenture
dated May 7, 2002 (as amended and/or supplemented from time to time, the
"Indenture") and made between the Issuer and the Trustee; the Notes will be in
registered form and in a minimum denomination of (Euro)1,000; the Notes will be
represented by Global Notes, which will be exchangeable for certificates
representing Definitive Registered Notes only in the limited circumstances
specified therein; and the Issuer, the Registrar, the Paying Agents and the
Trustee wish to record certain arrangements which they have made in relation to
the Notes;

         IT IS AGREED as follows:

SECTION 1       INTERPRETATION

         (a) In this Agreement, the following expressions have the following
meanings:

         "AGENTS" means the Paying Agents and the Registrar and "AGENT" means
any one of the Agents;

         "BUSINESS DAY" means any day on which commercial banking institutions
are open for business and carrying out transactions in euro in the country in
which the Principal Paying Agent has its Specified Office and is a day on which
the Trans-European Automated Real-Time Gross Settlement Express Transfer System
("TARGET") is operating;

         "CLEARSTREAM BANKING" means Clearstream Banking, SOCIETE ANONYME;

<PAGE>

         "DEPOSITARY" or "DEPOSITARIES" means one or more of Euroclear,
Clearstream Banking, or the successor of either of them, in each case acting
directly, or through a custodian, nominee or depository, as registered Holder of
a Global Note;

         "EUROCLEAR" means Euroclear Bank S.A./N.A., as operator of the
Euroclear System;

         "HOLDER" means a Person in whose name a Note is registered in the
Registrar's books;

         "PERSON" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organisation, limited
liability company, government or any agency or political jurisdiction thereof or
any other entity;

         "REQUIRED AGENT" means any Paying Agent or any Registrar which is the
sole remaining Paying Agent with its Specified Office in any city where each
stock exchange or other relevant authority (if any) on which the Notes are then
listed requires there to be a Paying Agent or a Registrar; and

         "SPECIFIED OFFICE" means, in relation to any Agent:

                  (1) the office specified against its name in Exhibit 1 hereto;
         or

                  (2) such other office as such Agent may specify in accordance
         with Section 17(g).

         (b) In this Agreement, any reference to principal includes premium and
any reference to principal or interest includes any Special Interest or
Additional Amounts payable in relation thereto under the Notes.

         (c) Terms and expressions used but not defined herein have the
respective meaning given to them in the Notes or the Indenture.

         (d) Headings and sub-headings are for ease of reference only and shall
not affect the construction of this Agreement.

         (e) If and to the extent that any provision of this Agreement conflicts
or is inconsistent with the Indenture, the Indenture shall prevail.

                                      -2-
<PAGE>

SECTION 2       APPOINTMENT OF THE AGENTS

         (a) The Issuer, and for the purposes of Section 13(b) only, the Trustee
hereby appoints each Agent to act in relation to the Notes, on the terms and
conditions specified herein for the purposes specified in this Agreement, the
Indenture and the Notes.

         (b) Each Agent hereby accepts the appointment set forth in Section 2(a)
above upon the terms, and subject to, the conditions set forth in this Agreement
and agrees to comply with the terms of this Agreement. Each Agent shall have the
powers and authority granted to and conferred upon it herein and in the Notes
and such further powers and authority, acceptable to it, to act on behalf of the
Issuer, and, for the purposes of Section 13(b) hereof, the Trustee as the Issuer
and/or, the Trustee as the case may be, may hereafter grant to or confer upon
it.

SECTION 3       FORMS OF NOTES; AUTHENTICATION; SIGNATURES

         (a) The face and reverse of each Global Note and any Definitive
Registered Notes shall be in substantially the form set out in the Indenture.
The Global Notes and any Definitive Registered Notes shall be executed in
accordance with Section 2.02 of the Indenture and authenticated manually by or
on behalf of the Principal Paying Agent. The Global Notes shall be deposited
with The Bank of New York, and registered in the name of The Bank of New York
Depository (Nominees) Limited, a nominee for a common depositary for the
Depositaries.

         (b) Notes may also have such additional provisions, omissions,
variations or substitutions as are not inconsistent with the provisions of this
Agreement and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may be required to comply
with any law or with any rules made pursuant thereto or with the rules of the
Depositaries, each stock exchange, quotation system or listing authority (if
any) on or by which the Notes are listed or quoted from time to time, any
depository, clearance facility or governmental agency or as may consistently
herewith be determined by the authorized Officers (as defined in the Indenture)
of the Issuer executing such Notes, as evidenced by execution of such Notes. If
the Issuer is required to deliver Definitive Registered Notes pursuant to the
Indenture the Issuer shall promptly furnish the Principal Paying Agent with an
adequate supply of Definitive Registered Notes (unauthenticated and with the
names of the Holders left blank but executed on behalf of the Issuer and
otherwise complete). The Issuer shall also arrange for such Global Notes and
Definitive Registered

                                      -3-
<PAGE>

Notes as are required to enable the Registrar to perform their respective
obligations under Section 8 and Section 9 to be made available to or to the
order of the Registrar from time to time. The Registrar shall hold in safe
custody all unauthenticated Global Notes and Definitive Registered Notes
delivered to it in accordance with this Section and Section 4 below and shall
ensure that they are authenticated and delivered only in accordance with the
terms hereof (and any Authentication Order (as defined in the Indenture) made
pursuant to the terms hereof), of the Global Notes (if applicable) and of the
Indenture. Each Note will bear the manual signature or facsimile signature of
two authorized Officers of the Issuer and the Principal Paying Agent shall, upon
the receipt of a Authentication Order, authenticate and deliver the Notes in
accordance with such Authentication Order. The aggregate principal amount of the
Notes issued on the closing date of the offering of the Notes shall be equal to
the aggregate principal amount of the Notes which the Issuer has authorised the
creation of and shall not exceed (Euro)260,000,000.

SECTION 4       AUTHORIZED OFFICERS

         As necessary, the Issuer will furnish the Trustee and Registrar with a
certificate of the Issuer certifying the incumbency and specimen signature of
each authorized Officer and a certificate of the Issuer certifying the
incumbency and specimen signatures of officers authorized to give instructions
to the Trustee and/or Registrar as the case may be, with respect to the
completion and delivery of Notes. Until, in each such case, the Trustee and/or
Registrar as the case may be, receives a subsequent incumbency certificate, the
Trustee and/or Registrar as the case may be, shall be entitled to rely on the
information set forth in the incumbency certificates it last received for the
purposes of determining the authorized Officers. Any such subsequent incumbency
certificate of an authorized Officer shall be accompanied by an adequate supply
of Definitive Registered Notes which are unauthenticated and with the names of
the Holders left blank but executed on behalf of the Issuer by the authorized
Officers and otherwise complete.

SECTION 5       EXECUTION, AUTHENTICATION, DELIVERY, DATING AND NOTIFICATION

         The Notes shall be executed upon issuance on behalf of the Issuer by
two authorized Officers of the Issuer. If not already completed by the Issuer,
the Principal Paying Agent will complete each Note with the name of the relevant
Holder and with the principal amount in accordance with an Authentication Order
of the Issuer and will authenticate such Note. If an authorized Officer whose
signature is on a Note was an authorized Officer at the time of such execution
but no longer holds that office or position at the time (for whatever reason,
including

                                      -4-
<PAGE>

death) and the Principal Paying Agent authenticates the Note, the Note shall
nevertheless be valid. A Note shall not be valid until an authorised signatory
of the Principal Paying Agent manually signs the certificate of authentication
(substantially in the form set out in the Indenture) on the Note. The signature
shall be conclusive evidence that the Note has been authenticated under this
Agreement. The Notes shall be issued in the order of the serial numbers
imprinted thereon and shall be dated the date of their authentication by the
Principal Paying Agent and delivery to the Holder shall be made in the manner
agreed upon by the Issuer and the Principal Paying Agent and set forth in the
relevant Authentication Order. The Issuer will provide the Registrar with such
information necessary to maintain a register of Holders. Any instructions given
by the Issuer shall be given in the form of a Authentication Order signed on
behalf of the Issuer by an authorized Officer or authorized Officers in the
manner provided for in the resolutions of the Board of Directors of the Issuer
or duly authorized committees thereof applicable to the Notes, at the time any
such instruction is given. The Principal Paying Agent shall be entitled to rely
upon any Authentication Order signed by an authorized Officer or authorized
Officers as a confirmation that the issuance of the Notes contemplated by such
written order complies with the requirements of such resolutions.

SECTION 6       PAYMENTS TO HOLDERS

         (a) The relevant Agent will pay, subject to the deposit of funds by the
Issuer in accordance with Section 7(a), the principal amount of each Note at
maturity or upon redemption, together with accrued interest due at maturity or
redemption, as the case may be, to the Holder as set forth on the face of the
Note against presentation and surrender of such Note, upon which the Principal
Paying Agent will cancel and destroy such Note and remit a certificate of
destruction directly to the Issuer in accordance with the Principal Paying
Agent's customary practice.

         (b) Each payment of interest and principal shall be made by wire
transfer of immediately available funds to the accounts specified by the Holder
of the relevant Global Note. With respect to Definitive Registered Notes, all
payments of interest and principal will be made by wire transfer of immediately
available funds to the accounts specified by the Holders thereof or, if no such
account is specified, by mailing a cheque to each Holder's registered address.

         (c) All payments in respect of the Notes are subject in all cases to
any applicable fiscal or other laws and regulations, but without prejudice to
the provisions of the Notes. No commissions or expenses shall be charged to the
Holders in respect of such payments.

                                      -5-
<PAGE>

         (d) Where payment is to be made by transfer to a euro account, payment
instructions (for value on the due date, or, if the due date is not a business
day, for value on the next succeeding business day) will be initiated and, where
payment is to be made by euro cheque, the cheque will be mailed (i) (in the case
of payments of principal and interest payable on redemption) on the later of the
due date for payment and the day on which the relevant Note is surrendered (or,
in the case of part payment only, endorsed) at the Specified Office of a Paying
Agent and (ii) (in the case of payments of interest payable other than on
redemption) on the due date for payment. A Holder of a Note shall not be
entitled to any interest or other payment in respect of any delay in payment
resulting from (A) the due date for a payment not being a business day or (B) a
cheque mailed in accordance with this Section 6 arriving after the due date for
payment or being lost in the mail. In this paragraph, "business day" means any
day which is a day on which TARGET is operating and on which banks are open for
business (including dealings in foreign currencies), in the case of surrender
(or, in the case of part payment only, endorsement) of a Note, in the place in
which the Note is surrendered (or, as the case may be, endorsed).

         (e) Each Paying Agent acting through its Specified Office shall make
payments of interest and principal in respect of Notes, so long as the Notes are
evidenced by the Global Note, in accordance with the terms thereof; provided,
however, that:

                  (1) if the Global Note or Definitive Registered Note is
         presented or surrendered for payment to any Paying Agent and such
         Paying Agent has delivered a replacement therefor or has been notified
         that the same has been replaced, such Paying Agent shall forthwith
         notify the Issuer and (if such Paying Agent is not the Principal Paying
         Agent) the Principal Paying Agent of such presentation or surrender and
         shall not make payment against the same until it is so instructed by
         the Issuer and the Principal Paying Agent has received the amount to be
         so paid;

                  (2) a Paying Agent shall not be obliged (but shall be
         entitled) to make such payments if:

                  (A)      in the case of the Principal Paying Agent, it has not
                           received the full amount of any payment due to it
                           under Section 7(a); or

                  (B)      in the case of any other Paying Agent:

                                      -6-
<PAGE>

                           (i) it has been notified in accordance with Section
                           7(a) that the full amount of any payment required to
                           be made has not been received, unless it is
                           subsequently notified that the full amount of any
                           payment required to be made has been received; or

                           (ii) it is not able to establish that the Principal
                           Paying Agent has received (whether or not at the due
                           time) the full amount of any payment due to it under
                           Section 7(a);

                  (3) each Paying Agent shall cancel each Note against
         presentation and surrender of which it has made full payment and shall
         deliver each Note so cancelled by it to, or to the order of, the
         Registrar; and

                  (4) notwithstanding any other provision of this Agreement,
         each Paying Agent shall be entitled to make a deduction or withholding
         from any payment which it makes under this Agreement for or on account
         of any present or future taxes, duties or charges if and to the extent
         so required by applicable law, in which event such Paying Agent shall
         make such payment after such withholding or deduction has been made and
         shall account to the relevant authorities for the amount so withheld or
         deducted.

         (f) No Paying Agent shall exercise any lien, right of set-off or
similar claim against any person to whom it makes any payment under Section 6(e)
in respect thereof, nor shall any commission or expense be charged by it to any
such person in respect thereof.

         (g) If a Paying Agent other than the Principal Paying Agent makes any
payment in accordance with Section 6(e):

                  (1) it shall notify the Principal Paying Agent of the amount
         so paid by it and the serial number and principal amount of each Note
         in relation to which payment of principal or interest was made; and

                  (2) subject to and to the extent of compliance by the Issuer
         with Section 7(a), (whether or not at the due time), the Principal
         Paying Agent shall pay to such Paying Agent out of the funds received
         by it under Section 7(a), by credit transfer in euro and in immediately
         available, freely transferable, cleared funds to such account with such
         bank as such Paying

                                      -7-
<PAGE>

         Agent has by notice to the Principal Paying Agent specified for the
         purpose, an amount equal to the amount so paid by such Paying Agent.

         (h) If the Principal Paying Agent makes any payment in accordance with
Section 6(e) it shall be entitled to appropriate for its own account out of the
funds received by it under Section 7(a) an amount equal to the amount so paid by
it.

         (i) Subject to sub-clauses 6(e)(1) and 6(e)(2), if a Paying Agent makes
a payment in respect of Notes on or after the due date for such payment under
the Indenture at a time at which the Principal Paying Agent has not received the
full amount of the relevant payment due to it under Section 7(a) and the
Principal Paying Agent is not able out of funds received by it under Section
7(a) to reimburse such Paying Agent therefor (whether by payment under Section
6(g) or appropriation under Section 6(h)), the Issuer shall from time to time on
demand pay to the Principal Paying Agent for account of such Paying Agent:

                  (1) the amount so paid out by such Paying Agent and not so
         reimbursed to it; and

                  (2) interest on such amount from the date on which such Paying
         Agent made such payment until the date of reimbursement of such amount;

PROVIDED, HOWEVER, that any payment made under sub-paragraph (1) shall satisfy
PRO TANTO the obligations of the Issuer under Section 6(a).

         Interest shall accrue for the purpose of sub-paragraph (1) of Section
6(i) (as well after as before judgment) on the basis of a year of 365 days and
the actual number of days elapsed and at the rate per annum which is the
aggregate of one percent per annum and the rate per annum specified by such
Paying Agent as reflecting its cost of funds for the time being in relation to
the unpaid amount.

         If at any time and for any reason a Paying Agent makes a partial
payment in respect of any Note presented for payment to it, such Paying Agent
shall endorse thereon a statement indicating the amount and the date of such
payment. In addition, if, on any due date for payment, less than the full amount
of any principal or interest is paid in respect of the Notes, the Registrar will
note on the register of Holders a memorandum of the amount and date of any
payment then made and, if the Note is presented for payment in accordance with
this Agreement and the Indenture and no payment is then made, the date of
presentation of such Note.

                                      -8-
<PAGE>

SECTION 7       DEPOSIT OF MONEYS; PRESCRIPTION

         (a) Prior to 10:00 a.m. (London time) on or prior to each Interest
Payment Date, the Maturity Date and each payment date relating to an Asset Sale,
Offer or a Change of Control Offer, and on the Business Day immediately
following an acceleration of the Notes pursuant to Section 6.02 of the
Indenture, the Issuer shall have deposited with the Trustee or its designated
Paying Agent (which shall be the Principal Paying Agent unless otherwise
notified to the Issuer by the Trustee) in immediately available funds money (in
Euros) sufficient to make cash payments, if any, due on such Interest Payment
Date, Maturity Date or Business Day, as the case may be, on all Notes then
outstanding. Such payments shall be made by the Issuer in a timely manner which
permits the Paying Agent to remit payment to the Holders on such Interest
Payment Date, Maturity Date or Business Day, as the case may be, to the Persons
and in the manner set forth in paragraph 2 of the Notes. In the event that the
Principal Paying Agent does not receive from the Issuer the full amount of any
payment required to be made on any interest payment date or at Maturity, in
accordance with this Section 7, (i) the Principal Paying Agent shall give prompt
notice to the Issuer, the Trustee and each other Paying Agent of any such non
payment and (ii) each payment on account of principal of and interest on the
Notes shall be made pro rata according to the respective principal amounts of
the Notes then outstanding.

         (b) Claims against the Issuer in respect of principal, premium,
interest, Special Interest and Additional Amounts will become void unless made
within a period of ten years (in the case of principal, premium or Additional
Amounts) and five years (in the case of interest or Special Interest) from the
appropriate interest payment date. Any money deposited with the Principal Paying
Agent for the payment of the principal of, premium, if any, or interest or
Special Interest or Additional Amounts, if any, on any Note which remains
unclaimed for two years after such amounts have become due and payable, shall be
paid to the Issuer upon its request PROVIDED, that the Principal Paying Agent,
before being required to make any payment, may at the expense of the Issuer
cause to be published once in a newspaper of general circulation in Luxembourg
(which is expected to be the LUXEMBURGER WORT) and mail to each Holder entitled
to such money notice that such money remains unclaimed and that after a date
specified therein which shall be at least 30 days from the date of such
publication and mailing, any unclaimed balance of such money then remaining will
be repaid to the Issuer. After payment to the Issuer, the Holder of the relevant
Note shall thereafter, as an unsecured subordinated creditor, look only to the
Issuer for payment thereof and all liability of the Principal Paying Agent with
respect to such money shall thereupon cease.

                                      -9-
<PAGE>

         (c) The relevant Agent shall be entitled to deal with each amount paid
to it under Section 7(a) in the same manner as other amounts paid to it as a
banker by its customers; provided, however, that it shall not exercise against
the Issuer any lien, right of set-off or similar claim in respect thereof and it
shall not be liable to any person for interest thereon.

SECTION 8       REGISTRATION OF TRANSFER AND EXCHANGE

         Registration of transfers and exchanges shall be made pursuant to
Section 2.07 of the Indenture.

SECTION 9       REPLACEMENT NOTES

         Replacement Notes shall be issued pursuant to Section 2.08 of the
Indenture.

SECTION 10      CANCELLATION

         Cancellation of Notes shall be made pursuant to Section 2.12 of the
Indenture.

SECTION 11      REPRESENTATIONS, WARRANTIES AND CERTAIN COVENANTS OF THE ISSUER

         (a) Each instruction given to the Registrar in accordance with Section
4 hereof shall constitute a representation and warranty to the Registrar by the
Issuer that the issuance and delivery of the Notes has been duly and validly
authorized by the Issuer and that the Notes constitute the valid and legally
binding obligations of the Issuer.

         (b) The Issuer shall provide the Registrar with (i) conformed copies of
this Agreement and the Indenture, and (ii) the information and reports it is
required to provide to the Trustee under Sections 4.03 and 4.04 of the
Indenture.

         (c) The Issuer shall take all actions necessary, including but not
limited to obtaining all permits and agreeing to all amendments necessary due to
any change in, or interpretation regarding, any law, to ensure that the Notes
remain legal, valid and enforceable under English law.

SECTION 12      FEES AND EXPENSES

         (a) Each of the Agents shall be entitled to such compensation
(including any value added tax or any similar tax thereon) for its services
under

                                      -10-
<PAGE>

this Agreement at such rate as shall be agreed upon between the Principal Paying
Agent, on behalf of the Agents, and the Issuer, which shall be paid annually in
advance. The Issuer shall promptly reimburse the Principal Paying Agent for the
account of the Agents for all out-of-pocket expenses (including fees and
disbursements of its legal counsel) plus any applicable value added tax or
similar tax reasonably and properly incurred by it in connection with the
services rendered by it hereunder. The obligations of the Issuer to the Agents
pursuant to this Section 12 shall survive the satisfaction or termination of
this Agreement.

         (b) The Issuer shall pay all stamp, registration and other taxes and
duties (including any interest and penalties thereon or in connection therewith)
which are payable upon or in connection with the execution and delivery of this
Agreement, and the Issuer shall indemnify each Agent on demand against any
claim, demand, action, liability, damages, cost, loss or expense (including,
without limitation, legal fees and any applicable value added tax or similar
tax) which it incurs as a result of, or arising out of or in relation to, any
failure to pay or delay in paying any of the same. All payments of compensation
or remuneration to the Agents under this Section 12 shall be made free and clear
of, and without withholding or deduction for or on account of, any present or
future Taxes, imposed or levied by or on behalf of any Taxing Authority within
Luxembourg or within any other jurisdiction in which the Issuer is organised or
resident for tax purposes or any political subdivision thereof or any Taxing
Authority therein (each, a "Relevant Taxing Jurisdiction"), unless the
withholding or deduction of Taxes is then required by law or by the
interpretation or administration thereof. If any deduction or withholding for,
or on account of, any Taxes imposed by a Relevant Taxing Jurisdiction, shall at
any time be required on any such payments of compensation and remuneration, the
Issuer will pay (together with such payments) such additional amounts as may be
necessary so that the net amounts received in respect of such payments by the
Agents, after such withholding or deduction (including any such deduction or
withholding from such additional amounts), shall equal the respective amounts
which would have been received by the Agents if such Taxes had not been withheld
or deducted.

SECTION 13      RIGHTS AND LIABILITIES OF THE AGENTS

         (a) Each of the Agents shall incur no liability for, or in respect of,
any action taken, omitted to be taken or suffered by it in reliance upon any
certificate, affidavit, instruction, notice, request, direction, order,
statement or other paper, document or communication reasonably believed by it to
be genuine and made or given and signed by the proper person or persons on
behalf of the proper parties; provided, however, that this Section 13 shall not
protect any Agent from any

                                      -11-
<PAGE>

liability relating to or arising out of actions or omissions in any capacity
hereunder caused by its wilful default, negligence or bad faith. Any order,
certificate, affidavit, written instruction, notice, request, direction,
statement or other communication from the Issuer made or given by it and sent,
delivered or directed to any Agent under, pursuant to or as permitted by, any
provision of this Agreement shall be sufficient for purposes of this Agreement
so long as it is in writing and signed by any authorized Officer of the Issuer.
Each of the Agents may, but will not be obligated to, consult with counsel
satisfactory to it and the advice of such counsel shall constitute full and
compete authorisation and protection of such Agent with respect to any action
taken, omitted to be taken or suffered by it hereunder in good faith and in
accordance with and in reliance upon the advice of such counsel.

         The recitals contained herein and in the Notes shall be taken as the
statements of the Issuer and the Agents assume no responsibility for the
correctness of the same. The Agents do not make any representation as to the
validity or sufficiency of this Agreement or the Notes, except for each Agent's
due authorisation, execution and delivery of this Agreement. The Agents shall
not be accountable for the use or application by the Issuer of the proceeds of
any Notes.

         Unless herein or in the Notes otherwise specifically provided, any
order, certificate, notice, request, direction or other communication from the
Issuer made or given under any provision of this Agreement shall be sufficient
if signed by an authorized officer or any attorney-in-fact of the Issuer.

         (b) If any Default or Event of Default occurs, the Agents shall, if so
required by notice given by the Trustee to the Issuer and the Agents (or such of
them as are specified by the Trustee):

                  (1) act thereafter, until otherwise instructed by the Trustee,
         as the agents of the Trustee in relation to payments and calculations
         to be made by or on behalf of the Trustee under the Indenture (save
         that the Trustee's liability for the indemnification, remuneration and
         expenses of the Agents shall be limited to the amounts for the time
         being held by the Trustee on the trusts of the Indenture and available
         to the Trustee for such purpose) and thereafter to hold all Notes and
         all moneys, documents and records held by them in respect of the Notes
         on behalf of the Trustee; and/or

                  (2) deliver up all Notes and all moneys, documents and records
         held by them in respect of the Notes to the Trustee or as the Trustee
         shall

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<PAGE>

         direct in such notice; provided, however, that such notice shall not be
         deemed to apply to any document or record which any Agent is obliged
         not to release by any law or regulation.

SECTION 14      NOTES HELD BY THE AGENTS

         Any of the Agents, its officers, employees and shareholders may become
the owner of, or acquire any interests in the Notes, with the same rights (and
subject to the same limitations) as if such Agent were not an Agent hereunder.
Any of the Agents may engage in, or have an interest in, any financial or other
transaction with the Issuer or any of its Affiliates (as defined in the
Indenture) (including, without limitation, foreign exchange transactions of any
type or nature and in any currency, whether a spot transaction, forward
transaction, option, future or otherwise) and may act on, or as depository,
trustee or agent for, any committee or body of holders of the Notes or other
obligations of the Issuer, as if such Agent were not an Agent hereunder.

SECTION 15      DUTIES AS INFORMATION AGENT

         (a) The Registrar will arrange for all materials set forth in Section
11(b), if any, made available by the Issuer and supplied to the Registrar to be
made available for inspection at the office of each Agent to the Holders
appearing on the register of Holders, or to any prospective purchaser of a Note
designated by the Holder of such Note to the relevant Agent. Whenever the Issuer
intends to provide such information to the Holders or a prospective purchaser,
the Issuer will cooperate with the Registrar, on behalf of the Agents, so that
such information is provided to the Holders or the prospective purchaser in a
timely manner.

         (b) The Registrar will carry out such other acts as may be necessary to
give effect to the Notes and the other provisions of this Agreement and the
Indenture. The Registrar shall notify the Issuer forthwith upon any changes in
the register of Holders in order to enable the Issuer to maintain a register
consistent in all respects with the register of Holders as required under
Luxembourg law at its registered office. In addition, upon notification by the
Issuer of receipt of service of demands, requests, instructions, orders,
judgments or awards, the Registrar shall (to the extent required by law)
forthwith make such entries in the register of Holders to give effect to such
demands, requests, instructions, orders, judgments or awards.

                                      -13-
<PAGE>

SECTION 16      DUTIES OF THE AGENTS

         (a) In acting under this Agreement and in connection with the Notes,
each of the Agents shall be obligated only to perform such duties as are
specifically set forth herein and in the Notes, and as are required of such
Agent by applicable law, and none of the Agents shall be liable except for the
performance of such duties and obligations as are specifically set forth in this
Agreement, and no other duties or obligations on the part of any Agent shall be
implied by this Agreement or the Notes. In acting under this Agreement, none of
the Agents assumes any obligation towards, or any relationship of agency or
trust for or with, the Holders.

         (b) Upon receipt by the Registrar of notice from the Issuer that a
Default or an Event of Default has occurred, the Registrar shall give notice of
the occurrence thereof to the Trustee, the other Agents and the Holders, in
accordance with the terms of the Notes.

         (c) Each Agent shall promptly forward to the Issuer (with a copy to the
Trustee) any notice or demand received by such Agent from any Holder.

         (d) The Registrar shall, upon and in accordance with the instructions
of the Issuer received at least 10 days before the proposed publication date,
arrange at the cost of the Issuer for the publication and delivery of any notice
which is to be given to the Holders and shall supply a copy thereof to the other
Agents, the Trustee, each stock exchange or other relevant authority (if any) on
which the Notes are then listed and each Depositary.

SECTION 17      CHANGES IN AGENTS

         (a) Any Agent may at any time resign its appointment by giving no less
than 30 days' written notice to the Issuer (with a copy, in the case of an Agent
other than the Registrar, to the Registrar and, in each case, to the Trustee),
provided however, that (i) if such resignation would otherwise take effect less
than 30 days before or after the maturity of the Notes or other Redemption Date
or any Regular Record Date for an Interest Payment Date, it shall not take
effect until the 90th day following such date; and (ii) in the case of the
Registrar or a Required Agent, such resignation shall not take effect until a
successor has been duly appointed consistently with Section 17(d) and 17(e) and
notice of such appointment has been given to the Holders.

         (b) The Issuer may (with the prior written approval of the Trustee)
revoke its appointment of any Agent by not less than 30 days' notice to such

                                      -14-
<PAGE>

Agent (with a copy, in the case of an Agent other than the Registrar, to the
Registrar); provided, however, that, in the case of the Registrar or any
Required Agent, such revocation shall not take effect until a successor has been
duly appointed consistent with Section 17(d) and 17(e) and previously approved
in writing by the Trustee and notice of such appointment has been given to the
Holders.

         (c) The appointment of any Agent shall terminate forthwith if (i) such
Agent becomes incapable of acting, (ii) a secured party takes possession, or a
receiver, manager or other similar officer is appointed, of the whole or any
part of the undertaking, assets and revenues of such Agent, (iii) such Agent
admits in writing its insolvency or inability to pay its debts as they fall due,
(iv) an administrator or liquidator of such Agent or the whole or any part of
the undertaking, assets and revenues of such Agent is appointed (or application
for any such appointment is made), (v) such Agent takes any action for a
readjustment or deferment of any of its obligations or makes a general
assignment or an arrangement or composition with or for the benefit of its
creditors or declares a moratorium in respect of any of its indebtedness, (vi)
an order is made or an effective resolution is passed for the winding-up of such
Agent or (vii) any event occurs which has an analogous effect to any of the
foregoing. If the appointment of the Registrar or any Required Agent is
terminated in accordance with the preceding sentence, the Issuer shall forthwith
appoint a successor in accordance with Section 17(d).

         (d) The Issuer may (with the prior written approval of the Trustee)
appoint a successor Registrar or Paying Agents and shall forthwith give notice
of any such appointment to the continuing Agents, the Holders and the Trustee,
whereupon the Issuer, the continuing Agents, and the additional or successor
Registrar, Principal Paying Agent, Paying Agent and the Trustee shall acquire
and become subject to the same rights and obligations between themselves as if
they had entered into an agreement in the form MUTATIS MUTANDIS of this
Agreement.

         (e) If the Registrar or any Required Agent gives notice of its
resignation in accordance with Section 17(a) and by the fifteenth day before the
expiry of such notice a successor has not been duly appointed in accordance with
Section 17(a), the Registrar or Required Agent may itself, following such
consultation with the Issuer as is practicable in the circumstances and with the
prior written approval of the Trustee, appoint as its successor any reputable
and experienced financial institution and give notice of such appointment to the
Issuer, the Trustee, the remaining Agents and the Holders, whereupon the Issuer,
the remaining Agents and such successor shall acquire and become subject to the

                                      -15-
<PAGE>

same rights and obligations between themselves as if they had entered into an
agreement in the form MUTATIS MUTANDIS of this Agreement.

         (f) Upon any resignation or revocation taking effect under Section
17(a) or Section 17(b) or any termination taking effect under Section 17(c), the
relevant Agent shall:

                  (1) be released and discharged from its obligations under this
         Agreement (save that it shall remain entitled to the benefit of and
         subject to Section 12(b), Section 14, this Section 17 and Section
         18(a)); PROVIDED that this clause shall not relieve the relevant Agent
         from any liability to the Issuer in respect of any matters prior to
         such resignation or revocation becoming effective;

                  (2) in the case of the Registrar, deliver to the Issuer and to
         its successor a copy, certified as true and up-to-date by an officer or
         authorised signatory of the Registrar, of the records maintained by it
         in accordance with Section 8; and

                  (3) forthwith (upon payment to it of any amount due to it in
         accordance with Section 12) transfer all moneys and papers (including
         any unissued Notes held by it hereunder and any documents held by it
         pursuant to Section 15) to its successor and, upon appropriate notice,
         provide reasonable assistance to its successor for the discharge of its
         duties and responsibilities hereunder.

         (g) If any Agent decides to change its Specified Office (which may only
be effected within the same city unless the prior written approval of the Issuer
and the Trustee has been obtained), it shall give notice to the Issuer (with a
copy to the other Agents) of the address of the new Specified Office stating the
date on which such change is to take effect, which date shall be not less than
30 days after the date of such notice. The Trustee shall at the expense of the
Issuer not less than 14 days prior to the date on which such change is to take
effect (unless the appointment of the relevant Agent is to terminate pursuant to
any of the foregoing provisions of this Section 17 on or prior to the date of
such change) give notice thereof to the Holders.

SECTION 18      INDEMNIFICATION

         (a) The Issuer shall indemnify and hold harmless each Agent, its
officers and employees from and against all actions, claims, demands, damages,
liabilities, losses, costs and expenses (including, without limitation,

                                      -16-
<PAGE>

legal fees and expenses and any applicable value added tax or similar tax)
relating to or arising out of actions or omissions in any capacity hereunder,
except such as may result from the wilful default, wilful misconduct, negligence
or bad faith of such Agent.

         (b) This Section 18 shall survive the payment in full of all
obligations under the Notes, whether by redemption or otherwise, and the
termination of this Agreement by the Issuer or any of the Agents.

SECTION 19      MERGER, CONSOLIDATION OR SALE OF BUSINESS BY ANY AGENT

         Any legal entity into which any Agent or the Trustee may be merged,
converted or consolidated, or any legal entity resulting from any merger,
conversion or consolidation to which any Agent, or, as the case may be, the
Trustee shall be a party shall, to the extent permitted by applicable law, be
the successor to such Agent or, as the case may be, the Trustee under this
Agreement without the execution of any document or any further act by the
parties hereto, whereupon the Issuer, the Trustee, the other Agents and such
successor shall acquire and become subject to the same rights and obligations
between themselves as if they had entered into an agreement in the form mutatis
mutandis of this Agreement. Each Agent (or its successor) is required to notify
the Issuer in the event that such Agent is merged with, converted into or
consolidated with any other legal entity.

SECTION 20      NOTICES

         Any notice or other communication given hereunder, or pursuant to the
Notes shall be in writing delivered in person, sent by letter or telecopy (with
confirmation of receipt) or to such other address or facsimile number as the
party to receive such notice may have previously specified:

         (1)      if to the Issuer, to it at:

                  Sanitec International S.A.
                  19-21 boulevard Prince Henri
                  L-1724 Luxembourg
                  RC Luxembourg 13 82 055

                  Attention:  Dr. Manuel Frias
                  Facsimile: +352-26 26 89-834

                  with a copy to:

                                      -17-
<PAGE>

                  Sanitec Oy
                  Mikonkatu 15A
                  00100 Helsinki, Finland

                  Attention:  Dr. Rainer S. Simon

         (2) if to an Agent, to it at the address or facsimile number specified
against its name in Exhibit 1 hereto (or, in the case of an Agent not originally
a party hereto, specified by notice to the parties hereto at the time of its
appointment) for the attention of the person or department therein specified and
with a copy to:

                  The Bank of New York
                  One Canada Square
                  London E14 5AL
                  United Kingdom

                  Attn:  Global Trust Services
                  Facsimile:  +44 (0) 20 7964 6399

         (3)      If to the New York Paying Agent, to it at;

                  The Bank of New York
                  101 Barclay Street
                  Floor 21 West
                  New York, NY 10286

         4)       if to the Trustee, to it at:

                  The Bank of New York
                  One Canada Square
                  London E14 5AL
                  United Kingdom

                  Attn:  Global Trust Services
                  Facsimile: +44 (0) 20 7964 6399

         All notices and communications (other than those sent to holders of
Global Notes or Definitive Registered Notes) shall be deemed to have been duly
given (i) at the time delivered by hand, if personally delivered; (ii) five
Business Days after being deposited in the mail, postage prepaid, if mailed;
(iii) when answered back, if telexed; (iv) when receipt acknowledged, if
telecopied; and the

                                      -18-
<PAGE>

next Business Day after timely delivery to the courier, if sent by overnight air
courier guaranteeing next day delivery.

         Any notice or communication to a Holder of one or more Global Notes or
Definitive Registered Notes will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing
next day delivery to its address shown on the register kept by the Registrar.
Failure to mail a notice or communication to a Holder or any defect in it shall
not affect its sufficiency with respect to other Holders.

         All notices to the Holders (whilst any Notes are represented by one or
more Global Notes) shall be delivered to the Depositaries for communication to
entitled Participants. Any notice will be deemed to have been given on the date
of delivery to the Depositary. Alternatively, any notice shall be valid if
published in a leading newspaper having a general circulation in New York City
(which is expected to be the WALL STREET JOURNAL), a leading newspaper having a
general circulation in London (which is expected to be the FINANCIAL TIMES) and,
so long as the Notes are listed on the Luxembourg Stock Exchange and the rules
of such exchange shall so require, a newspaper having a general circulation in
Luxembourg (which is expected to be the LUXEMBURGER WORT). If publication as
provided above is not practicable, notice will be given in such other manner,
and shall be deemed to have been given on such date, as the Trustee may approve.

         Any notices and other communication hereunder shall be made in the
English language or shall be accompanied by a certified English translation
thereof. Any certified English translation shall be certified a true and
accurate translation by a professionally qualified translator or by some other
person competent to do so.

         The Principal Paying Agent hereby agrees to give the notices required
to be delivered by it pursuant to the Indenture.

SECTION 21      MODIFICATIONS AND WAIVERS

         The Issuer and the Trustee shall only agree to any amendment or
modification to this Agreement in compliance with the relevant provisions of the
Indenture.

SECTION 22      JUDGMENT CURRENCY

         The Issuer shall indemnify the Holders against any loss incurred, as a
result of any judgment or award in connection with the Notes, or Indenture being

                                      -19-
<PAGE>

expressed in a currency (the "Judgment Currency") other than Euros and as a
result of any variation as between (i) the spot rate of exchange used to
calculate the Judgment Currency in which such judgment or award is paid, and
(ii) the spot rate of exchange at which the indemnified party converts or could
have converted such Judgment Currency at the earliest practicable time after
such judgment or award is rendered and becomes final. The foregoing shall
constitute a separate and independent obligation of the Issuer and shall
continue in full force and effect notwithstanding any such judgment or order.
The term "spot rate of exchange" includes any premiums and costs of exchange
payable in connection with the purchase of, or conversion into, the relevant
currency

SECTION 23      RIGHTS OF THIRD PARTIES

         This Agreement does not create any right under the Contracts (Rights of
Third Parties) Act 1999 which is enforceable by any person who is not a party to
this Agreement.

SECTION 24      GOVERNING LAW; SUBMISSION TO JURISDICTION

         (a) This Agreement and the Notes, and the rights and duties of the
parties hereunder and thereunder, shall be governed by and construed in
accordance with English law (articles 86 to 94-8 of the Luxembourg law of 10th
August 1915 having been expressly waived).

         (b) The Issuer hereby irrevocably submits to the non-exclusive
jurisdiction of any English court over any suit, action or proceeding arising
out of or related to this Agreement or any Note. The Issuer irrevocably waives,
to the fullest extent permitted by law, any objection which it may have to the
laying of the venue of any such suit, action or proceeding brought in such a
court and any claim that any such suit, action or proceeding brought in such a
court has been brought in an inconvenient forum.

         (c) As long as any of the Notes remain outstanding, the Issuer will at
all times have an authorized agent in England, upon whom process may be served
in any suit, action or proceeding arising out of or relating to this Agreement
or any Note. Service of process upon such agent and written notice of such
service mailed or delivered to the Issuer shall, to the extent permitted by law,
be deemed in every respect effective service of process upon the Issuer in any
such suit, action or proceeding. The Issuer has appointed Twyford Bathrooms, as
its initial authorized agent upon which all writs and processed summonses may be
served in any suit, action or proceeding brought in connection with this
Agreement or the Notes against the Issuer (or at such other address or at the
office of such other

                                      -20-
<PAGE>

authorized agent as the Issuer may designate by written notice to the Registrar
on behalf of the Agents).

SECTION 25      COUNTERPARTS

         This Agreement may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument. Such counterparts shall together
constitute but one and the same instrument.

                                      -21-
<PAGE>

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

                  The Issuer

                  SANITEC INTERNATIONAL S.A.

                  By:

                           Name:
                           Title:

                  By:

                           Name:
                           Title:

The provisions set out in Section 24 are hereby expressly agreed to by SANITEC
INTERNATIONAL S.A. for the purposes, INTER ALIA, of Article 1 of the Protocol
annexed to the Convention on jurisdiction and enforcement of judgments in civil
and commercial matters signed in Brussels on 27 September 1968.

For and on behalf of SANITEC INTERNATIONAL S.A.:

                _______________________

                _______________________

                  The Trustee

                  THE BANK OF NEW YORK

                           By:

                           Name:
                           Title:

                                      -22-
<PAGE>

                  The Registrar, the Principal Paying Agent and the New York
                  Paying Agent

                  THE BANK OF NEW YORK

                           By:

                           Name:
                           Title:

                  The Luxembourg Paying Agent

                  THE BANK OF NEW YORK (LUXEMBOURG) S.A.

                           By:

                           Name:
                           Title:

                  By:

                           Name:
                           Title:

The provisions set out in Section 24 are hereby expressly agreed to by The Bank
of New York (Luxembourg) S.A. for the purposes, INTER ALIA, of Article 1 of the
Protocol annexed to the Convention on jurisdiction and enforcement of judgments
in civil and commercial matters signed in Brussels on 27 September 1968.

For and on behalf of
THE BANK OF NEW YORK (LUXEMBOURG) S.A.:

                __________________________

                __________________________

                                      -23-
<PAGE>

                                    EXHIBIT 1

                         SPECIFIED OFFICES OF THE AGENTS

The Principal Paying Agent and Registrar:

The Bank of New York
One Canada Square
London E14 5AL
United Kingdom

Fax:              + 44 20 7964 6399

Attention:        Global Trust Services

The Luxembourg Paying Agent:

The Bank of New York (Luxembourg) S.A.
c/o The Bank of New York
One Canada Square
London E14 5AL
United Kingdom

Fax:              + 44 20 7964 6399

Attention:        Global Trust Services

The New York Paying Agent:

The Bank of New York
101 Barclay Street
Floor 21 West
New York, NY 10286

                                      -24-Exhibit 10.3

                                                                  EXECUTION COPY

================================================================================

                                  A/B EXCHANGE
                          REGISTRATION RIGHTS AGREEMENT

                             DATED AS OF MAY 7, 2002

                                  BY AND AMONG

                           SANITEC INTERNATIONAL S.A.

                                       AND

                          MERRILL LYNCH INTERNATIONAL,

                        GOLDMAN SACHS INTERNATIONAL, AND

                      BAYERISCHE HYPO- UND VEREINSBANK AG.

================================================================================

<PAGE>

         This Registration Rights Agreement (this "AGREEMENT") is made and
entered into as of May 7, 2002, by and among Sanitec International S.A., a
public limited liability company organized under the laws of Luxembourg with its
registered office at 19-21, boulevard Prince Henri, L-1724 Luxembourg (the
"COMPANY"), and Merrill Lynch International ("MERRILL LYNCH"), Goldman Sachs
International ("GOLDMAN SACHS") and Bayerische Hypo- und Vereinsbank AG
("HYPOVEREINSBANK," and together with Merrill Lynch and Goldman Sachs, the
"INITIAL PURCHASERS"), each of whom has agreed to purchase the Company's 9%
Senior Notes due 2012 (the "SERIES A NOTES") pursuant to the Purchase Agreement
(as defined below).

         This Agreement is made pursuant to the Purchase Agreement, dated April
30, 2002 (the "PURCHASE AGREEMENT"), by and among the Company and the Initial
Purchasers. In order to induce the Initial Purchasers to purchase the Series A
Notes, the Company has agreed to provide the registration rights set forth in
this Agreement. The execution and delivery of this Agreement is a condition to
the obligations of the Initial Purchasers set forth in Section 5 of the Purchase
Agreement. Capitalized terms used herein and not otherwise defined shall have
the meaning assigned to them the Indenture, dated as of the date hereof, between
the Company and The Bank of New York, as Trustee, relating to the Series A Notes
and the Series B Notes (the "INDENTURE").

         The parties hereby agree as follows:

SECTION 1.        DEFINITIONS

         As used in this Agreement, the following capitalized terms shall have
the following meanings:

         ACT:  The U.S. Securities Act of 1933, as amended.

         AFFILIATE:  As defined in Rule 144 promulgated under the Act.

         BROKER-DEALER: Any broker or dealer registered under the Exchange Act.

         CERTIFICATED SECURITIES:  Definitive Notes, as defined in the
Indenture.

         CLOSING DATE:  The date hereof.

         COMMISSION:  The U.S. Securities and Exchange Commission.

         CONSUMMATE: An Exchange Offer shall be deemed "Consummated" for
purposes of this Agreement upon the occurrence of (a) the filing and
effectiveness under the Act of the Exchange Offer Registration Statement
relating to the Series B Notes to be issued in the Exchange Offer, (b) the
maintenance of such Exchange Offer Registration Statement continuously effective
and the keeping of the Exchange Offer open for a period not less than the period
required pursuant to Section 3(b) hereof and (c) the delivery by the Company to
the Registrar under the Indenture of Series B Notes in the same aggregate
principal amount as the aggregate principal amount of Series A Notes tendered by
Holders thereof pursuant to the Exchange Offer.

         CONSUMMATION DEADLINE:  As defined in Section 3(b) hereof.

<PAGE>

         EFFECTIVENESS DEADLINE:  As defined in Section 3(a) and 4(a) hereof.

         EXCHANGE ACT:  The U.S. Securities Exchange Act of 1934, as amended.

         EXCHANGE OFFER: The exchange and issuance by the Company of a principal
amount of Series B Notes (which exchange and issuance shall be registered
pursuant to the Exchange Offer Registration Statement) equal to the outstanding
principal amount of Series A Notes that are tendered by such Holders in
connection with such exchange and issuance.

         EXCHANGE OFFER REGISTRATION STATEMENT: The Registration Statement
relating to the Exchange Offer, including the related Prospectus.

         EXEMPT RESALES: The transactions in which the Initial Purchasers
propose to resell the Series A Notes to certain "qualified institutional
buyers," as such term is defined in Rule 144A, pursuant to Rule 144A and
Regulation S.

         FILING DEADLINE:  As defined in Sections 3(a) and 4(a) hereof.

         HOLDERS:  As defined in Section 2 hereof.

         PROSPECTUS: The prospectus included in a Registration Statement at the
time such Registration Statement is declared effective by the Commission, as
amended or supplemented by any prospectus supplement and by all other amendments
thereto, including post-effective amendments, and all material incorporated by
reference into such Prospectus.

         RECOMMENCEMENT DATE:  As defined in Section 6(d) hereof.

         REGISTRATION DEFAULT:  As defined in Section 5 hereof.

         REGISTRATION STATEMENT: Any registration statement of the Company
relating to (a) an offering of Series B Notes pursuant to an Exchange Offer, or
(b) the registration for resale of Transfer Restricted Securities pursuant to
the Shelf Registration Statement, in each case, (i) that is filed pursuant to
the provisions of this Agreement, and (ii) including the Prospectus included
therein, all amendments and supplements thereto (including post-effective
amendments) and all exhibits and material incorporated by reference therein.

         REGULATION S: Regulation S of the rules and regulations promulgated
under the Act.

         RULE 144: Rule 144 of the rules and regulations promulgated under the
Act.

         SERIES B NOTES: The Company's 9% Senior Notes due 2012 to be issued
pursuant to the Indenture: (i) in the Exchange Offer, or (ii) as contemplated by
Section 4 hereof.

         SHELF REGISTRATION STATEMENT:  As defined in Section 4 hereof.

         SUSPENSION NOTICE:  As defined in Section 6(d) hereof.

         TIA: The U.S. Trust Indenture Act of 1939 as in effect on the date of
the Indenture.

                                       2
<PAGE>

         TRANSFER RESTRICTED SECURITIES: Each (A) Series A Note, until the
earliest to occur of (i) the date on which such Series A Note is exchanged in
the Exchange Offer for a Series B Note which is entitled to be resold to the
public by the Holder thereof without complying with the prospectus delivery
requirements of the Act, (ii) the date on which such Series A Note has been
disposed of in accordance with a Shelf Registration Statement (and the
purchasers thereof have been issued Series B Notes), or (iii) the date on which
such Series A Note is distributed to the public pursuant to Rule 144, and each
(B) Series B Note held by a Broker Dealer until the date on which such Series B
Note is disposed of by a Broker-Dealer pursuant to the "Plan of Distribution"
contemplated by the Exchange Offer Registration Statement (including the
delivery of the Prospectus contained therein).

SECTION 2.        HOLDERS

         A Person is deemed to be a holder of Transfer Restricted Securities
(each, a "HOLDER") whenever such Person owns Transfer Restricted Securities.

SECTION 3.        REGISTERED EXCHANGE OFFER

         (a) Unless the Exchange Offer shall not be permitted by applicable U.S.
federal law (after the procedures set forth in Section 6(a)(i) below have been
complied with), the Company shall (i) cause the Exchange Offer Registration
Statement to be filed with the Commission (or, if permitted by the Commission,
submitted for confidential review) as soon as practicable after the Closing
Date, but in no event later than 180 days after the Closing Date (such 180th day
being the "FILING DEADLINE"), (ii) use its best efforts to cause such Exchange
Offer Registration Statement to become effective at the earliest possible time,
but in no event later than 270 days after the Closing Date (such 270th day being
the "EFFECTIVENESS DEADLINE"), (iii) in connection with the foregoing, (A) file
all pre-effective amendments to such Exchange Offer Registration Statement as
may be necessary in order to cause it to become effective, (B) file, if
applicable, a post-effective amendment to such Exchange Offer Registration
Statement pursuant to Rule 430A under the Act and (C) cause all necessary
filings, if any, in connection with the registration and qualification of the
Series B Notes to be made under the "blue sky" laws of such jurisdictions as are
necessary to permit Consummation of the Exchange Offer, and (iv) upon the
effectiveness of such Exchange Offer Registration Statement, commence and
Consummate the Exchange Offer. The Exchange Offer shall be on the appropriate
form permitting (i) registration of the Series B Notes to be offered in exchange
for the Series A Notes that are Transfer Restricted Securities and (ii) resales
of Series B Notes by Broker-Dealers that tendered into the Exchange Offer Series
A Notes that such Broker-Dealer acquired for its own account as a result of
market making activities or other trading activities (other than Series A Notes
acquired directly from the Company or any of its Affiliates) as contemplated by
Section 3(c) below.

         (b) The Company shall use its best efforts to cause the Exchange Offer
Registration Statement to be effective continuously, and shall keep the Exchange
Offer open for a period of not less than the minimum period required under
applicable national, federal and state securities laws to Consummate the
Exchange Offer; PROVIDED, HOWEVER, that in no event shall such period be less
than 20 business days. The Company shall cause the Exchange Offer to comply with
all applicable U.S. federal and state securities laws. No securities other than
the Series B Notes shall be included in the Exchange Offer Registration
Statement. The Company shall use its best

                                       3
<PAGE>

efforts to cause the Exchange Offer to be Consummated on the earliest
practicable date after the Exchange Offer Registration Statement has become
effective, but in no event later than 30 business days thereafter (such 30th day
being the "CONSUMMATION DEADLINE").

         (c) The Company shall include a "Plan of Distribution" section in the
Prospectus contained in the Exchange Offer Registration Statement and indicate
therein that any Broker-Dealer who holds Transfer Restricted Securities that
were acquired for the account of such Broker-Dealer as a result of market-making
activities or other trading activities (other than Series A Notes acquired
directly from the Company or any Affiliate of the Company), may exchange such
Transfer Restricted Securities pursuant to the Exchange Offer. Such "Plan of
Distribution" section shall also contain all other information with respect to
such sales by such Broker-Dealers that the Commission may require in order to
permit such sales pursuant thereto, but such "Plan of Distribution" shall not
name any such Broker-Dealer or disclose the amount of Transfer Restricted
Securities held by any such Broker-Dealer, except to the extent required by the
Commission as a result of a change in policy, rules or regulations after the
date of this Agreement.

         Because such Broker-Dealer may be deemed to be an "underwriter" within
the meaning of the Act and must, therefore, deliver a prospectus meeting the
requirements of the Act in connection with its initial sale of any Series B
Notes received by such Broker-Dealer in the Exchange Offer, the Company shall
permit the use of the Prospectus contained in the Exchange Offer Registration
Statement by such Broker-Dealer to satisfy such prospectus delivery requirement.
To the extent necessary to ensure that the Prospectus contained in the Exchange
Offer Registration Statement is available for sales of Series B Notes by
Broker-Dealers, the Company agrees to use its best efforts to keep the Exchange
Offer Registration Statement continuously effective, supplemented, amended and
current as required by and subject to the provisions of Section 6(a) and (c)
hereof and in conformity with the requirements of this Agreement, the Act and
the policies, rules and regulations of the Commission as announced from time to
time, for a period of 180 days from the Consummation Deadline or such shorter
period as will terminate when all Transfer Restricted Securities covered by such
Registration Statement have been sold pursuant thereto. The Company shall
provide sufficient copies of the latest version of such Prospectus to such
Broker-Dealers, promptly upon request, and in no event later than one day after
such request, at any time during such period.

SECTION 4.        SHELF REGISTRATION

         (a) SHELF REGISTRATION. If (i) the Exchange Offer is not permitted by
applicable law (after the Company has complied with the procedures set forth in
Section 6(a)(i) below), or (ii) if any Holder of Transfer Restricted Securities
shall notify the Company within 20 business days following the Consummation
Deadline that (A) such Holder was prohibited by law or Commission policy from
participating in the Exchange Offer, (B) such Holder may not resell the Series B
Notes acquired by it in the Exchange Offer to the public without delivering a
prospectus and the Prospectus contained in the Exchange Offer Registration
Statement is not appropriate or available for such resales by such Holder or (C)
such Holder is a Broker-Dealer and holds Series A Notes acquired directly from
the Company or any of its Affiliates, then the Company shall:

                                       4
<PAGE>

                  (i) cause to be filed, on or prior to 30 days after the
         earlier of (i) the date on which the Company determines that the
         Exchange Offer Registration Statement cannot be filed as a result of
         clause (a)(i) above and (ii) the date on which the Company receives the
         notice specified in clause (a)(ii) above, (such earlier date, the
         "FILING DEADLINE"), a shelf registration statement pursuant to Rule 415
         under the Act (which may be an amendment to the Exchange Offer
         Registration Statement (the "SHELF REGISTRATION STATEMENT")), relating
         to all Transfer Restricted Securities, and

                  (ii) shall use its best efforts to cause such Shelf
         Registration Statement to become effective on or prior to 90 days after
         the Filing Deadline for the Shelf Registration Statement (such 90th day
         the "EFFECTIVENESS DEADLINE").

         If, after the Company has filed an Exchange Offer Registration
Statement that satisfies the requirements of Section 3(a) above, the Company is
required to file and make effective a Shelf Registration Statement solely
because the Exchange Offer is not permitted under applicable law (i.e., clause
(a)(i) above), then the filing of the Exchange Offer Registration Statement
shall be deemed to satisfy the requirements of clause (i) of the preceding
paragraph; PROVIDED that, in such event, the Company shall remain obligated to
meet the Effectiveness Deadline set forth in clause (ii) of the preceding
paragraph.

         To the extent necessary to ensure that the Shelf Registration Statement
is available for sales of Transfer Restricted Securities by the Holders thereof
entitled to the benefit of this Section 4(a) and the other securities required
to be registered therein pursuant to Section 6(b)(ii) hereof, the Company shall
use its best efforts to keep any Shelf Registration Statement required by this
Section 4(a) continuously effective, supplemented, amended and current as
required by and subject to the provisions of Sections 6(b) and (c) hereof and in
conformity with the requirements of this Agreement, the Act and the policies,
rules and regulations of the Commission as announced from time to time, for a
period of at least two years (as extended pursuant to Section 6(c)(i)) following
the Closing Date, or such shorter period as will terminate when all Transfer
Restricted Securities covered by such Shelf Registration Statement have been
sold pursuant thereto.

         (b) PROVISION BY HOLDERS OF CERTAIN INFORMATION IN CONNECTION WITH THE
SHELF REGISTRATION STATEMENT. No Holder of Transfer Restricted Securities may
include any of its Transfer Restricted Securities in any Shelf Registration
Statement pursuant to this Agreement unless and until such Holder furnishes to
the Company in writing, within 20 days after receipt of a request therefore, the
information (i) specified in Item 507 or 508 of Regulation S-K, as applicable,
of the Act, (ii) specified in Items 9(B) and 9(D) of Part I of Form 20-F, or
(iii) is otherwise required by the Company so as to enable the Company to comply
with those requirements of Item 4 of Form F-1 described in paragraphs 1(c)(ii)
and 1(c)(iii) of the Instructions as to Summary Prospectuses contained in Form
F-1, in each case for use in connection with any Shelf Registration Statement or
Prospectus or preliminary Prospectus included therein. No Holder of Transfer
Restricted Securities shall be entitled to Special Interest pursuant to Section
5 hereof unless and until such Holder shall have provided all such information.
Each selling Holder agrees to promptly furnish additional information required
to be disclosed in order to make the information previously furnished to the
Company by such Holder not materially misleading.

                                       5
<PAGE>

SECTION 5.        SPECIAL INTEREST

         If (i) any Registration Statement required by this Agreement is not
filed with the Commission on or prior to the applicable Filing Deadline, (ii)
any such Registration Statement has not been declared effective by the
Commission on or prior to the applicable Effectiveness Deadline, (iii) the
Exchange Offer has not been Consummated on or prior to the Consummation Deadline
or (iv) any Registration Statement required by this Agreement is filed and
declared effective but shall thereafter cease to be effective or fail to be
usable for its intended purpose without being succeeded immediately by a
post-effective amendment to such Registration Statement that cures such failure
and that is itself declared effective immediately (each such event referred to
in clauses (i) through (iv), a "REGISTRATION DEFAULT"), then the interest rate
borne on the Transfer Restricted Securities during the first 90-day period
immediately following the occurrence of the first Registration Default shall be
increased by one-half of one percent (0.5%) per annum, which interest rate (as
increased aforesaid) will increase by an additional one-half of one percent
(0.5%) per annum during each subsequent 90 day period until all Registration
Defaults have been cured, up to a maximum increase of one and one-half percent
(1.5%) per annum (all such interest increases referred to as "SPECIAL
INTEREST"). Notwithstanding anything to the contrary set forth herein, (1) upon
filing of the Exchange Offer Registration Statement (and/or, if applicable, the
Shelf Registration Statement), in the case of (i) above, (2) upon the
effectiveness of the Exchange Offer Registration Statement (and/or, if
applicable, the Shelf Registration Statement), in the case of (ii) above, (3)
upon Consummation of the Exchange Offer, in the case of (iii) above, or (4) upon
the filing of a post-effective amendment to the Registration Statement or an
additional Registration Statement that causes the Exchange Offer Registration
Statement (and/or, if applicable, the Shelf Registration Statement) to again be
declared effective or made usable in the case of (iv) above, the Special
Interest payable with respect to the Transfer Restricted Securities as a result
of such clause (i), (ii), (iii) or (iv), as applicable, shall cease.

         All accrued Special Interest shall be paid to the Holders entitled
thereto, in the manner provided for the payment of interest in the Indenture, on
each Interest Payment Date, as more fully set forth in the Indenture and the
Notes. Notwithstanding the fact that any securities for which Special Interest
is due cease to be Transfer Restricted Securities, all obligations of the
Company to pay special interest with respect to securities shall survive until
such time as such obligations with respect to such securities shall have been
satisfied in full.

SECTION 6.        REGISTRATION PROCEDURES

         (a) EXCHANGE OFFER REGISTRATION STATEMENT. In connection with the
Exchange Offer, the Company shall (x) comply with all applicable provisions of
Section 6(c) below, (y) use its best efforts to effect such exchange and to
permit the resale of Series B Notes by Broker-Dealers that tendered in the
Exchange Offer Series A Notes that such Broker-Dealer acquired for its own
account as a result of its market making activities or other trading activities
(other than Series A Notes acquired directly from the Company or any of its
Affiliates) being sold in accordance with the intended method or methods of
distribution thereof, and (z) comply with all of the following provisions:

                                       6
<PAGE>

                  (i) If, following the date hereof there has been announced a
         change in Commission policy with respect to exchange offers such as the
         Exchange Offer, that in the reasonable opinion of nationally recognized
         counsel to the Company raises a substantial question as to whether the
         Exchange Offer is permitted by applicable U.S. federal law, the Company
         hereby agrees to seek a no-action letter or other favorable decision
         from the Commission allowing the Company to Consummate an Exchange
         Offer for such Transfer Restricted Securities. The Company hereby
         agrees to pursue the issuance of such a decision to the Commission
         staff level. In connection with the foregoing, the Company hereby
         agrees to take all such other reasonable actions as may be requested by
         the Commission or otherwise required in connection with the issuance of
         such decision, including, without limitation, (A) participating in
         telephonic conferences with the Commission, (B) delivering to the
         Commission staff an analysis prepared by counsel to the Company setting
         forth the legal bases, if any, upon which such counsel has concluded
         that such an Exchange Offer should be permitted, and (C) diligently
         pursuing a resolution (which need not be favorable) by the Commission
         staff.

                  (ii) As a condition to its participation in the Exchange
         Offer, each Holder of Transfer Restricted Securities (including,
         without limitation, any Holder who is a Broker Dealer) shall furnish,
         upon the request of the Company, prior to the Consummation of the
         Exchange Offer, a written representation to the Company (which may be
         contained in the letter of transmittal contemplated by the Exchange
         Offer Registration Statement) to the effect that (A) it is not an
         Affiliate of the Company, (B) it is not engaged in, and does not intend
         to engage in, and has no arrangement or understanding with any person
         to participate in, a distribution of the Series B Notes to be issued in
         the Exchange Offer, and (C) it is acquiring the Series B Notes in its
         ordinary course of business. As a condition to its participation in the
         Exchange Offer each Holder using the Exchange Offer to participate in a
         distribution of the Series B Notes shall acknowledge and agree that, if
         the resales are of Series B Notes obtained by such Holder in exchange
         for Series A Notes acquired directly from the Company or an Affiliate
         thereof, it (1) could not, under Commission policy as in effect on the
         date of this Agreement, rely on the position of the Commission
         enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and
         Exxon Capital Holdings Corporation (available May 13, 1988), as
         interpreted in the Commission's letter to Shearman & Sterling dated
         July 2, 1993, and similar no-action letters (including, if applicable,
         any no-action letter obtained pursuant to clause (i) above), and (2)
         must comply with the registration and prospectus delivery requirements
         of the Act in connection with a secondary resale transaction and that
         such a secondary resale transaction must be covered by an effective
         registration statement containing the selling security holder
         information required by Item 507 or 508, of Regulation S-K or Item 9.B.
         or 9.D. of Form 20-F, as applicable.

                  (iii) Prior to effectiveness of the Exchange Offer
         Registration Statement, the Company shall provide a supplemental letter
         to the Commission (A) stating that the Company are registering the
         Exchange Offer in reliance on the position of the Commission enunciated
         in Exxon Capital Holdings Corporation (available May 13, 1988), Morgan
         Stanley and Co., Inc. (available June 5, 1991) as interpreted in the
         Commission's letter to Shearman & Sterling dated July 2, 1993, and, if
         applicable, any no-action letter obtained pursuant to clause (i) above,
         (B) including a representation that

                                       7
<PAGE>

         the Company has not entered into any arrangement or understanding with
         any Person to distribute the Series B Notes to be received in the
         Exchange Offer and that, to the best of the Company's information and
         belief, each Holder participating in the Exchange Offer is acquiring
         the Series B Notes in its ordinary course of business and has no
         arrangement or understanding with any Person to participate in the
         distribution of the Series B Notes received in the Exchange Offer, and
         (C) any other undertaking or representation required by the Commission
         as set forth in any no-action letter obtained pursuant to clause (i)
         above, if applicable.

         (b) SHELF REGISTRATION STATEMENT. In connection with the Shelf
Registration Statement, the Company shall:

                  (i) comply with all the provisions of Section 6(c) below and
         use its best efforts to effect such registration to permit the sale of
         the Transfer Restricted Securities being sold in accordance with the
         intended method or methods of distribution thereof (as indicated in the
         information furnished to the Company pursuant to Section 4(b) hereof),
         and pursuant thereto the Company will prepare and file with the
         Commission a Registration Statement relating to the registration on any
         appropriate form under the Act, which form shall be available for the
         sale of the Transfer Restricted Securities in accordance with the
         intended method or methods of distribution thereof within the time
         periods and otherwise in accordance with the provisions hereof, and

                  (ii) issue, upon the request of any Holder or purchaser of
         Series A Notes covered by any Shelf Registration Statement contemplated
         by this Agreement, Series B Notes having an aggregate principal amount
         equal to the aggregate principal amount of Series A Notes sold pursuant
         to the Shelf Registration Statement and surrendered to the Company for
         cancellation; the Company shall register Series B Notes on the Shelf
         Registration Statement for this purpose and issue the Series B Notes to
         the purchaser(s) of securities subject to the Shelf Registration
         Statement in the names as such purchaser(s) shall designate.

                  (iii) furnish to each Holder in connection with such exchange
         or sale, if any, before filing with the Commission, copies of any
         Registration Statement or any Prospectus included therein or any
         amendments or supplements to any such Registration Statement or
         Prospectus (including all documents incorporated by reference after the
         initial filing of such Registration Statement), which documents will be
         subject to the review and comment of such Holders in connection with
         such sale, if any, for a period of at least five business days, and the
         Company will not file any such Registration Statement or Prospectus or
         any amendment or supplement to any such Registration Statement or
         Prospectus (including all such documents incorporated by reference) to
         which such Holders shall reasonably object within five business days
         after the receipt thereof. A Holder shall be deemed to have reasonably
         objected to such filing if such Registration Statement, amendment,
         Prospectus or supplement, as applicable, as proposed to be filed,
         contains an untrue statement of a material fact or omit to state any
         material fact necessary to make the statements therein not misleading
         or fails to comply with the applicable requirements of the Act;

                                       8
<PAGE>

                  (iv) promptly prior to the filing of any document that is to
         be incorporated by reference into a Registration Statement or
         Prospectus, provide copies of such document to each Holder in
         connection with such exchange or sale, if any, make the Company's
         representatives available for discussion of such document and other
         customary due diligence matters, and include such information in such
         document prior to the filing thereof as such Holders may reasonably
         request;

                  (v) make available, at reasonable times, for inspection by
         each Holder and any attorney or accountant retained by such Holders,
         all financial and other records, pertinent corporate documents of the
         Company and cause the Company's officers, directors and employees to
         supply all information reasonably requested by any such Holder,
         attorney or accountant in connection with such Registration Statement
         or any post-effective amendment thereto subsequent to the filing
         thereof and prior to its effectiveness;

                  (vi) deliver to each Holder without charge, as many copies of
         the Prospectus (including each preliminary prospectus) and any
         amendment or supplement thereto as such Persons reasonably may request;
         the Company hereby consents to the use (in accordance with law) of the
         Prospectus and any amendment or supplement thereto by each selling
         Holder in connection with the offering and the sale of the Transfer
         Restricted Securities covered by the Prospectus or any amendment or
         supplement thereto;

         (c) GENERAL PROVISIONS. In connection with any Registration Statement
and any related Prospectus required by this Agreement, the Company shall:

                  (i) use its best efforts to keep such Registration Statement
         continuously effective and provide all requisite financial statements
         for the period specified in Section 3 or 4 of this Agreement, as
         applicable. Upon the occurrence of any event that would cause any such
         Registration Statement or the Prospectus contained therein (A) to
         contain an untrue statement of material fact or omit to state any
         material fact necessary to make the statements therein not misleading,
         or (B) not to be effective and usable for resale of Transfer Restricted
         Securities during the period required by this Agreement, the Company
         shall file promptly an appropriate amendment to such Registration
         Statement curing such defect, and, if Commission review is required,
         use its best efforts to cause such amendment to be declared effective
         as soon as practicable.

                  (ii) prepare and file with the Commission such amendments and
         post-effective amendments to the applicable Registration Statement as
         may be necessary to keep such Registration Statement effective for the
         applicable period set forth in Section 3 or 4 hereof, as the case may
         be; cause the Prospectus to be supplemented by any required Prospectus
         supplement, and as so supplemented to be filed pursuant to Rule 424
         under the Act, and to comply fully with Rules 424, 430A and 462, as
         applicable, under the Act in a timely manner; and comply with the
         provisions of the Act with respect to the disposition of all securities
         covered by such Registration Statement during the applicable period in
         accordance with the intended method or methods of distribution by the
         sellers thereof set forth in such Registration Statement or supplement
         to the Prospectus;

                                       9
<PAGE>

                  (iii) advise each Holder promptly and, if requested by such
         Holder, confirm such advice in writing, (A) when the Prospectus or any
         Prospectus supplement or post-effective amendment has been filed, and,
         with respect to any applicable Registration Statement or any
         post-effective amendment thereto, when the same has become effective,
         (B) of any request by the Commission for amendments to the Registration
         Statement or amendments or supplements to the Prospectus or for
         additional information relating thereto, (C) of the issuance by the
         Commission of any stop order suspending the effectiveness of the
         Registration Statement under the Act or of the suspension by any state
         securities commission of the qualification of the Transfer Restricted
         Securities for offering or sale in any jurisdiction, or the initiation
         of any proceeding for any of the preceding purposes, (D) of the
         existence of any fact or the happening of any event that makes any
         statement of a material fact made in the Registration Statement, the
         Prospectus, any amendment or supplement thereto or any document
         incorporated by reference therein untrue, or that requires the making
         of any additions to or changes in the Registration Statement in order
         to make the statements therein not misleading, or that requires the
         making of any additions to or changes in the Prospectus in order to
         make the statements therein, in the light of the circumstances under
         which they were made, not misleading. If at any time the Commission
         shall issue any stop order suspending the effectiveness of the
         Registration Statement, or any state securities commission or other
         regulatory authority shall issue an order suspending the qualification
         or exemption from qualification of the Transfer Restricted Securities
         under U.S. state securities or "blue sky" laws, the Company shall use
         its best efforts to obtain the withdrawal or lifting of such order at
         the earliest possible time;

                  (iv) subject to Section 6(c)(i), if any fact or event
         contemplated by Section 6(c)(iii)(D) above shall exist or have
         occurred, prepare a supplement or post-effective amendment to the
         Registration Statement or related Prospectus or any document
         incorporated therein by reference or file any other required document
         so that, as thereafter delivered to the purchasers of Transfer
         Restricted Securities, the Prospectus will not contain an untrue
         statement of a material fact or omit to state any material fact
         necessary to make the statements therein, in the light of the
         circumstances under which they were made, not misleading;

                  (v) if requested by any Holders in connection with such
         exchange or sale, promptly include in any Registration Statement or
         Prospectus, pursuant to a supplement or post-effective amendment if
         necessary, such information as such Holders may reasonably request to
         have included therein, including, without limitation, information
         relating to the "Plan of Distribution" of the Transfer Restricted
         Securities; and make all required filings of such Prospectus supplement
         or post-effective amendment as soon as practicable after the Company is
         notified of the matters to be included in such Prospectus supplement or
         post-effective amendment;

                  (vi) furnish or make reasonably available to each Holder in
         connection with such exchange or sale, without charge, at least one
         copy of the Registration Statement, as first publicly filed with the
         Commission, and of each amendment thereto, including all documents
         incorporated by reference therein and all exhibits (including exhibits
         incorporated therein by reference);

                                       10
<PAGE>

                  (vii) deliver to each Holder without charge, at least one copy
         of the Prospectus (including each preliminary prospectus) and any
         amendment or supplement thereto; the Company hereby consents to the use
         (in accordance with law) of the Prospectus and any amendment or
         supplement thereto by each selling Holder in connection with the
         offering and the sale of the Transfer Restricted Securities covered by
         the Prospectus or any amendment or supplement thereto;

                  (viii) upon the request of any Holder, enter into such
         agreements (including underwriting agreements) and make such
         representations and warranties and take all such other reasonable
         actions in connection therewith in order to expedite or facilitate the
         disposition of the Transfer Restricted Securities pursuant to any
         applicable Registration Statement contemplated by this Agreement as may
         be reasonably requested by any Holder in connection with any sale or
         resale pursuant to any applicable Registration Statement. In such
         connection, the Company shall:

                        (A) In connection with a Shelf Registration Statement
                  and upon request of any Holder, furnish (or in the case of
                  paragraphs (2) and (3), use its best efforts to cause to be
                  furnished) to each Holder, upon the effectiveness of the Shelf
                  Registration Statement:

                               (1) a certificate, dated such date, signed on
                        behalf of the Company by (x) two members of the
                        Company's board of directors, and (y) a principal
                        financial or accounting officer of the Company,
                        confirming, as of the date thereof, the matters set
                        forth in Sections 1(a)(vi) and 5(h) of the Purchase
                        Agreement and such other similar matters as such Holders
                        may reasonably request;

                               (2) an opinion, dated the date of Consummation of
                        the Exchange Offer or the date of effectiveness of the
                        Shelf Registration Statement, as the case may be, of
                        counsel for the Company covering matters similar to
                        those set forth in paragraphs (a), (b), (c) and (d) of
                        Section 5 (including the corresponding Exhibits) of the
                        Purchase Agreement and such other matter as such Holder
                        may reasonably request, and in any event including a
                        statement to the effect that such counsel has
                        participated in conferences with officers and other
                        representatives of the Company, representatives of the
                        independent public accountants for the Company and have
                        considered the matters required to be stated therein and
                        the statements contained therein, although such counsel
                        has not independently verified the accuracy,
                        completeness or fairness of such statements; and that
                        such counsel advises that, on the basis of the foregoing
                        (relying as to materiality to the extent such counsel
                        deems appropriate upon the statements of officers and
                        other representatives of the Company) and without
                        independent check or verification, no facts came to such
                        counsel's attention that caused such counsel to believe
                        that the Shelf Registration Statement, at the time such
                        Shelf Registration Statement or any post-effective
                        amendment thereto became effective) contained an untrue
                        statement of a material fact or omitted to state a
                        material fact

                                       11
<PAGE>

                        required to be stated therein or necessary to make the
                        statements therein not misleading, or that the
                        Prospectus contained in such Shelf Registration
                        Statement as of its date contained an untrue statement
                        of a material fact or omitted to state a material fact
                        necessary in order to make the statements therein, in
                        the light of the circumstances under which they were
                        made, not misleading. Without limiting the foregoing,
                        such counsel may state further that such counsel assumes
                        no responsibility for, and has not independently
                        verified, the accuracy, completeness or fairness of the
                        financial statements, notes and schedules included in
                        any Registration Statement contemplated by this
                        Agreement or the related Prospectus; and

                               (3) a customary comfort letter, dated as of the
                        date of effectiveness of the Shelf Registration
                        Statement, from the Company's independent accountants,
                        in the customary form and covering matters of the type
                        customarily covered in comfort letters to underwriters
                        in connection with underwritten offerings, and affirming
                        the matters set forth in the comfort letters delivered
                        pursuant to Section 5(i) of the Purchase Agreement, and

                        (B) deliver such other documents and certificates as may
                  be reasonably requested by the selling Holders to evidence
                  compliance with the matters covered in clause (A) above and
                  with any customary conditions contained in the any agreement
                  entered into by the Company pursuant to this clause (xi);

         (ix) prior to any public offering of Transfer Restricted Securities,
cooperate with the selling Holders and their counsel in connection with the
registration and qualification of the Transfer Restricted Securities under the
securities or Blue Sky laws of such jurisdictions as the selling Holders may
request and do any and all other acts or things reasonably necessary or
advisable to enable the disposition in such jurisdictions of the Transfer
Restricted Securities covered by the applicable Registration Statement;
PROVIDED, HOWEVER, that neither the Company shall be required to register or
qualify as a foreign corporation where it is not now so qualified or to take any
action that would subject it to the service of process in suits or to taxation,
other than as to matters and transactions relating to the Registration
Statement, in any jurisdiction where it is not now so subject;

         (x) in connection with any sale of Transfer Restricted Securities that
will result in such securities no longer being Transfer Restricted Securities,
cooperate with the Holders to facilitate the timely preparation and delivery of
certificates representing Transfer Restricted Securities to be sold and not
bearing any restrictive legends; and to register such Transfer Restricted
Securities in such denominations and such names as the selling Holders may
request at least two business days prior to such sale of Transfer Restricted
Securities;

         (xi) use its best efforts to cause the disposition of the Transfer
Restricted Securities covered by the Registration Statement to be registered
with or approved by such other governmental agencies or authorities of the U.S.
federal or state government

                                       12
<PAGE>

as may be necessary to enable the seller or sellers thereof to consummate the
disposition of such Transfer Restricted Securities, subject to the proviso
contained in clause (xii) above;

         (xii) provide an ISIN and/or Common Code number for all Notes that are
not -Transfer Restricted Securities not later than the effective date of a
Registration Statement covering such Transfer Restricted Securities and provide
the Trustee under the Indenture with printed certificates for the Transfer
Restricted Securities which are in a form eligible for deposit with Euroclear
Bank S.A/N.V., as operator of the Euroclear System, and Clearstream Banking,
societe anonyme;

         (xiii) otherwise use its best efforts to comply with all applicable
rules and regulations of the Commission, and make generally available to its
security holders with regard to any applicable Registration Statement, as soon
as practicable, a consolidated earnings statement meeting the requirements of
Rule 158 (which need not be audited) covering a twelve-month period beginning
after the effective date of the Registration Statement (as such term is defined
in paragraph (c) of Rule 158 under the Act);

         (xiv) cause the Indenture to be qualified under the TIA not later than
the effective date of the first Registration Statement required by this
Agreement and, in connection therewith, cooperate with the Trustee and the
Holders to effect such changes to the Indenture as may be required for such
Indenture to be so qualified in accordance with the terms of the TIA; and
execute and use its best efforts to cause the Trustee to execute, all documents
that may be required to effect such changes and all other forms and documents
required to be filed with the Commission to enable such Indenture to be so
qualified in a timely manner; and

         (xv) to the extent not otherwise reasonably available and accessible to
the Holders, provide promptly to each Holder, upon request, each document filed
with the Commission pursuant to the requirements of Section 13 or Section 15(d)
of the Exchange Act.

         (d) RESTRICTIONS ON HOLDERS. Each Holder agrees by acquisition of a
Transfer Restricted Security that, upon receipt of the notice referred to in
Section 6(c)(iii)(C) or any notice from the Company of the existence of any fact
of the kind described in Section 6(c)(iii)(D) hereof (in each case, a
"SUSPENSION NOTICE"), such Holder will forthwith discontinue disposition of
Transfer Restricted Securities pursuant to the applicable Registration Statement
until (i) such Holder has received copies of the supplemented or amended
Prospectus contemplated by Section 6(c)(iv) hereof, or (ii) such Holder is
advised in writing by the Company that the use of the Prospectus may be resumed,
and has received copies of any additional or supplemental filings that are
incorporated by reference in the Prospectus (in each case, the "RECOMMENCEMENT
DATE"). Each Holder receiving a Suspension Notice hereby agrees that it will
either (i) destroy any Prospectuses, other than permanent file copies, then in
such Holder's possession which have been replaced by the Company with more
recently dated Prospectuses, or (ii) deliver to the Company (at the Company's
expense) all copies, other than permanent file copies, then in such Holder's
possession of the Prospectus covering such Transfer Restricted Securities that
was current at the time of receipt of the Suspension Notice. The time period
regarding the

                                       13
<PAGE>

effectiveness of such Registration Statement set forth in Section 3 or 4 hereof,
as applicable, shall be extended by a number of days equal to the number of days
in the period from and including the date of delivery of the Suspension Notice
to the date of delivery of the Recommencement Date.

SECTION 7.        REGISTRATION EXPENSES

         (a) All expenses incident to the Company's performance of or compliance
with this Agreement will be borne by the Company, regardless of whether a
Registration Statement becomes effective, including, without limitation: (i) all
registration and filing fees and expenses; (ii) all fees and expenses of
compliance with national, federal and state securities and Blue Sky laws; (iii)
all expenses of printing (including printing certificates for the Series B Notes
to be issued in the Exchange Offer and printing of Prospectuses), messenger and
delivery services and telephone; (iv) all fees and disbursements of counsel for
the Company and the Holders of Transfer Restricted Securities; (v) all
application and filing fees in connection with listing the Series B Notes on the
Luxembourg Stock Exchange and any other national securities exchange or
automated quotation system pursuant to the requirements hereof; and (vi) all
fees and disbursements of independent certified public accountants of the
Company (including the expenses of any special audit and comfort letters
required by or incident to such performance).

         The Company will, in any event, bear its internal expenses (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expenses of any annual audit and the
fees and expenses of any Person, including special experts, retained by the
Company.

         (b) In connection with any Registration Statement required by this
Agreement (including, without limitation, the Exchange Offer Registration
Statement and the Shelf Registration Statement), the Company will reimburse the
Initial Purchasers and the Holders of Transfer Restricted Securities who are
tendering Series A Notes into in the Exchange Offer and/or selling or reselling
Series A Notes or Series B Notes pursuant to the "Plan of Distribution"
contained in the Exchange Offer Registration Statement or the Shelf Registration
Statement, as applicable, for the reasonable fees and disbursements of not more
than one counsel, who shall be Latham & Watkins, unless another firm shall be
chosen by the Holders of a majority in principal amount of the Transfer
Restricted Securities for whose benefit such Registration Statement is being
prepared.

SECTION 8.        INDEMNIFICATION

         (a) The Company agrees to indemnify and hold harmless each Holder, its
directors, officers and each Person, if any, who controls such Holder (within
the meaning of Section 15 of the Act or Section 20 of the Exchange Act), from
and against any and all losses, claims, damages, liabilities, judgments,
(including without limitation, any legal or other expenses incurred in
connection with investigating or defending any matter, including any action that
could give rise to any such losses, claims, damages, liabilities or judgments)
caused by any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement, preliminary prospectus or Prospectus
(or any amendment or supplement thereto) provided by the Company to any Holder
or any prospective purchaser of Series B Notes or

                                       14
<PAGE>

registered Series A Notes, or caused by any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, except that the Company shall not be
liable to a Holder under the foregoing provision insofar as such losses, claims,
damages, liabilities or judgments are caused by an untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity
with written information furnished to the Company by such Holder expressly for
use in the Registration Statement, preliminary prospectus or Prospectus (or any
amendment or supplement thereto).

         (b) Each Holder of Transfer Restricted Securities agrees, severally and
not jointly, to indemnify and hold harmless the Company and its directors and
officers, and each person, if any, who controls (within the meaning of Section
15 of the Act or Section 20 of the Exchange Act) the Company, to the same extent
as the foregoing indemnity from the Company set forth in section (a) above, but
only with reference to untrue statements or omissions, or alleged untrue
statements or omissions, made in the Registration Statement in reliance upon and
in conformity with written information furnished to the Company by such Holder
expressly for use in any Registration Statement. In no event shall any Holder,
its directors, officers or any Person who controls such Holder be liable or
responsible for any amount in excess of the amount by which the total amount
received by such Holder with respect to its sale of Transfer Restricted
Securities pursuant to a Registration Statement exceeds (i) the amount paid by
such Holder for such Transfer Restricted Securities, and (ii) the amount of any
damages that such Holder, its directors, officers or any Person who controls
such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission.

         (c) In case any action shall be commenced involving any person in
respect of which indemnity may be sought pursuant to Section 8(a) or 8(b) (the
"INDEMNIFIED PARTY"), the indemnified party shall promptly notify the person
against whom such indemnity may be sought (the "INDEMNIFYING PARTY") in writing
and the indemnifying party shall assume the defense of such action, including
the employment of counsel reasonably satisfactory to the indemnified party (who
shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party) and the payment of all fees and expenses of such counsel, as
incurred (except that in the case of any action in respect of which indemnity
may be sought pursuant to both Sections 8(a) and 8(b), a Holder shall not be
required to assume the defense of such action pursuant to this Section 8(c), but
may employ separate counsel and participate in the defense thereof, but the fees
and expenses of such counsel, except as provided below, shall be at the expense
of the Holder). Any indemnified party shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of the indemnified party
unless (i) the employment of such counsel shall have been specifically
authorized in writing by the indemnifying party, (ii) the indemnifying party
shall have failed to assume the defense of such action or employ counsel
reasonably satisfactory to the indemnified party, or (iii) the named parties to
any such action (including any impleaded parties) include both the indemnified
party and the indemnifying party, and the indemnified party shall have been
advised by such counsel that there may be one or more legal defenses available
to it which are different from or additional to those available to the
indemnifying party (in which case the indemnifying party shall not have the
right to assume the defense of such action on behalf of the indemnified party).
In any such case, the indemnifying party shall not, in connection with any one
action or separate but substantially similar or related

                                       15
<PAGE>

actions in the same jurisdiction arising out of the same general allegations or
circumstances, be liable for the fees and expenses of more than one separate
firm of attorneys (in addition to any local counsel) for all indemnified parties
and all such fees and expenses shall be reimbursed as they are incurred. Such
firm shall be designated in writing by a majority of the Holders, in the case of
the parties indemnified pursuant to Section 8(a), and by the Company, in the
case of parties indemnified pursuant to Section 8(b). The indemnifying party
shall indemnify and hold harmless the indemnified party from and against any and
all losses, claims, damages, liabilities and judgments by reason of any
settlement of any action (i) effected with its written consent, or (ii) effected
without its written consent if the settlement is entered into more than twenty
business days after the indemnifying party shall have received a request from
the indemnified party for reimbursement for the fees and expenses of counsel (in
any case where such fees and expenses are at the expense of the indemnifying
party) and, prior to the date of such settlement, the indemnifying party shall
have failed to comply with such reimbursement request. No indemnifying party
shall, without the prior written consent of the indemnified party, effect any
settlement or compromise of, or consent to the entry of judgment with respect
to, any pending or threatened action in respect of which the indemnified party
is or could have been a party and indemnity or contribution may be or could have
been sought hereunder by the indemnified party, unless such settlement,
compromise or judgment (i) includes an unconditional release of the indemnified
party from all liability on claims that are or could have been the subject
matter of such action, 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 the
indemnified party.

         (d) To the extent that the indemnification provided for in this Section
8 is unavailable to an indemnified party in respect of any losses, claims,
damages, liabilities or judgments referred to therein, then each indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified party as a result of such losses,
claims, damages, liabilities or judgments (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company, on the one
hand, and the Holders, on the other hand, from their sale of Transfer Restricted
Securities, or (ii) if the allocation provided by clause 8(d)(i) is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause 8(d)(i) above but also the
relative fault of the Company, on the one hand, and of the Holder, on the other
hand, in connection with the statements or omissions which resulted in such
losses, claims, damages, liabilities or judgments, as well as any other relevant
equitable considerations. The relative fault of the Company, on the one hand,
and of the Holder, on the other hand, shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Company, on the one hand, or by the Holder, on the
other hand, and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. The amount
paid or payable by a party as a result of the losses, claims, damages,
liabilities and judgments referred to above shall be deemed to include, subject
to the limitations set forth in the second paragraph of Section 8(a), any legal
or other fees or expenses reasonably incurred by such party in connection with
investigating or defending any action or claim.

         The Company and each Holder agree that it would not be just and
equitable if contribution pursuant to this Section 8(d) were determined by pro
rata allocation (even if the Holders were treated as one entity for such
purpose) or by any other method of allocation which

                                       16
<PAGE>

does not take account of the equitable considerations referred to in the
immediately preceding paragraph. The amount paid or payable by an indemnified
party as a result of the losses, claims, damages, liabilities or judgments
referred to in the immediately preceding paragraph shall be deemed to include,
subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any matter, including any action that could have given rise to such
losses, claims, damages, liabilities or judgments. Notwithstanding the
provisions of this Section 8, no Holder, its directors, its officers or any
Person, if any, who controls such Holder shall be required to contribute, in the
aggregate, any amount in excess of the amount by which the total received by
such Holder with respect to the sale of Transfer Restricted Securities pursuant
to a Registration Statement exceeds (i) the amount paid by such Holder for such
Transfer Restricted Securities, and (ii) 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. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Holders' obligations to contribute pursuant to this
Section 8(c) are several in proportion to the respective principal amount of
Transfer Restricted Securities held by each Holder hereunder and not joint.

SECTION 9.        RULE 144A AND RULE 144

         The Company agrees with each Holder, for so long as any Transfer
Restricted Securities remain outstanding and during any period in which the
Company (i) is not subject to Section 13 or 15(d) of the Exchange Act, to make
available, upon request of any Holder, to such Holder or beneficial owner of
Transfer Restricted Securities in connection with any sale thereof and any
prospective purchaser of such Transfer Restricted Securities designated by such
Holder or beneficial owner, the information required by Rule 144A(d)(4) of the
rules and regulations promulgated under the Act in order to permit resales of
such Transfer Restricted Securities pursuant to Rule 144A, and (ii) is subject
to Section 13 or 15(d) of the Exchange Act, to make all filings required thereby
in a timely manner in order to permit resales of such Transfer Restricted
Securities pursuant to Rule 144.

SECTION 10.       MISCELLANEOUS

         (a) REMEDIES. The Company acknowledge and agree that any failure by the
Company to comply with its obligations under Sections 3 and 4 hereof may result
in material irreparable injury to the Initial Purchasers or the Holders for
which there is no adequate remedy at law, that it will not be possible to
measure damages for such injuries precisely and that, in the event of any such
failure, the Initial Purchasers or any Holder may obtain such relief as may be
required to specifically enforce the Company's obligations under Sections 3 and
4 hereof. The Company further agrees to waive the defense in any action for
specific performance that a remedy at law would be adequate.

         (b) NO INCONSISTENT AGREEMENTS. The Company will not, on or after the
date of this Agreement, enter into any agreement with respect to its securities
that is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. The Company has not previously
entered into any agreement granting any registration rights

                                       17
<PAGE>

with respect to its securities to any Person. The rights granted to the Holders
hereunder do not in any way conflict with and are not inconsistent with the
rights granted to the holders of the Company's securities under any agreement in
effect on the date hereof.

         (c) AMENDMENTS AND WAIVERS. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to or departures from
the provisions hereof may not be given unless (i) in the case of Section 5
hereof and this Section 10(c)(i), the Company has obtained the written consent
of Holders of all outstanding Transfer Restricted Securities, and (ii) in the
case of all other provisions hereof, the Company has obtained the written
consent of Holders of a majority of the outstanding principal amount of Transfer
Restricted Securities (excluding Transfer Restricted Securities held by the
Company or its Affiliates). Notwithstanding the foregoing, a waiver or consent
to departure from the provisions hereof that relates exclusively to the rights
of Holders whose Transfer Restricted Securities are being tendered pursuant to
the Exchange Offer, and that does not affect directly or indirectly the rights
of other Holders whose Transfer Restricted Securities are not being tendered
pursuant to such Exchange Offer, may be given by the Holders of a majority of
the outstanding principal amount of Transfer Restricted Securities subject to
such Exchange Offer.

         (d) THIRD PARTY BENEFICIARY. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right to
enforce such agreements directly to the extent they may deem such enforcement
necessary or advisable to protect their rights hereunder.

         (e) NOTICES. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail
(registered or certified, return receipt requested), telex, telecopier,
facsimile, or air courier guaranteeing overnight delivery:

                  (i) if to a Holder, at the address set forth on the records of
         the Registrar under the Indenture, with a copy to the Registrar under
         the Indenture; and

                  (ii) if to the Company:

                                    Sanitec International S.A.
                                    19-21, boulevard Prince Henri
                                    L-1724 Luxembourg
                                    RC Luxembourg B 82 050 5
                                    Attention: Dr. Manuel Frais

                           with a copy to:

                                    Sanitec Corporation
                                    Mikonkatu 15A
                                    00100 Helsinki, Finland
                                    Telecopier No.:  +358 9 773 1207
                                    Attention: Senior Vice President and CFO

                                       18
<PAGE>

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five business
days after being deposited in the mail, postage prepaid, if mailed; when receipt
acknowledged, if telecopied; and on the next business day, if timely delivered
to an air courier guaranteeing overnight delivery.

         Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address specified in the Indenture.

         (f) SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit
of and be binding upon the successors and assigns of each of the parties,
including without limitation and without the need for an express assignment,
subsequent Holders; PROVIDED, that nothing herein shall be deemed to permit any
assignment, transfer or other disposition of Transfer Restricted Securities in
violation of the terms hereof or of the Purchase Agreement or the Indenture. If
any transferee of any Holder shall acquire Transfer Restricted Securities in any
manner, whether by operation of law or otherwise, such Transfer Restricted
Securities shall be held subject to all of the terms of this Agreement, and by
taking and holding such Transfer Restricted Securities such Person shall be
conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement, including the restrictions on resale set
forth in this Agreement and, if applicable, the Purchase Agreement, and such
Person shall be entitled to receive the benefits hereof.

         (g) COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

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

         (i) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE
CONFLICT OF LAW RULES THEREOF.

         (j) JURISDICTION. The Company irrevocably submits to the non-exclusive
jurisdiction of any federal or state court in the City and State of New York,
United States of America, in any legal suit, action or proceeding based on or
arising under this Agreement and agrees that all claims in respect of such suit
or proceeding may be determined in any such court. The Company irrevocably
waives any immunity from jurisdiction of any court or from any legal proceeding
and waives the defense of an inconvenient forum or objections to personal
jurisdiction with respect to the maintenance of such legal suit, action or
proceeding. To the extent permitted by law, the Company hereby waives any
objections to the enforcement by any competent court in either Finland or
Luxembourg of any judgment validly obtained in any such court in New York on the
basis of any such legal suit, action or proceeding. The Company has appointed CT
Corporation System (the "PROCESS AGENT") as its authorized agent upon whom
process may be served in any such legal suit, action or proceeding. Such
appointment shall be irrevocable. CT Corporation System has agreed to act as
said agent for service of process and the Company agrees to take any and all
action including the filing of any and all documents and instruments,

                                       19
<PAGE>

that may be necessary to continue such appointment in full force and effect as
aforesaid. The Company further agrees that service of process upon the Process
Agent and written notice of said service to the Company shall be deemed in every
respect effective service of process upon the Company in any such legal suit,
action or proceeding. Nothing herein shall affect the right of any Initial
Purchaser or any person controlling any Initial Purchaser to serve process in
any other manner permitted by law.

         (k) JUDGMENT CURRENCY. The obligation of the parties to make payments
under this Agreement is in Euro (the "OBLIGATION CURRENCY") and such obligation
shall not be discharged or satisfied by any tender or recovery pursuant to any
judgment expressed in any currency other than the Obligation Currency or any
other realization in such other currency, whether as proceeds of set-off,
security, guarantee, distributions, or otherwise, except to the extent to which
such tender, recovery or realization shall result in the receipt by the party
which is to receive such payment of the full amount of the Obligation Currency
expressed to be payable hereunder. The party liable to make such payment agrees
to indemnify the party which is to receive such payment for the amount (if any)
by which such receipt shall fall short of the full amount of the Obligation
Currency expressed to be payable hereunder and the party which is to receive
such payment agrees to pay to the party liable to make such payment the amount
(if any) by which such receipt, shall exceed the full amount of the Obligation
Currency, and, in each case, such obligation shall not be affected by judgment
being obtained for any other sums due under this Agreement. The parties agree
that the rate of exchange which shall be used to determine if such tender,
recovery or realization shall result in the receipt by the party which is to
receive such payment of the full amount of the Obligation Currency expressed to
be payable hereunder shall be the noon buying rate in New York City for cable
transfers in foreign currencies as certified for customs purposes by the Federal
Reserve Bank of New York for the business day preceding that on which the
judgment becomes a final judgment.

         (l) SEVERABILITY. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

         (m) ENTIRE AGREEMENT. This Agreement is intended by the parties as a
final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein
with respect to the registration rights granted with respect to the Transfer
Restricted Securities. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter.

                            (SIGNATURE PAGE FOLLOWS.)

<PAGE>

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

                                        SANITEC INTERNATIONAL S.A.

                                        _______________________________________
                                        Name:
                                        Title:

                                        _______________________________________
                                        Name:
                                        Title:

MERRILL LYNCH INTERNATIONAL

_______________________________
Name:
Title:

GOLDMAN SACHS INTERNATIONAL

_______________________________
Name:
Title:

BAYERISCHE HYPO- UND VEREINSBANK AG

_______________________________
Name:
Title:

                                      S-1

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