Document:

Exhibit 10.1

 

HUNTSMAN INTERNATIONAL LLC

 

$180,000,000 8 5/8%
Senior Subordinated Notes due 2021

 

guaranteed on a senior subordinated basis as to the

payment of principal, premium,

if any, and interest by

 

AIRSTAR CORPORATION

HUNTSMAN ADVANCED MATERIALS AMERICAS LLC

HUNTSMAN ADVANCED MATERIALS LLC

HUNTSMAN AUSTRALIA INC.

HUNTSMAN CHEMICAL PURCHASING CORPORATION

HUNTSMAN ENTERPRISES, INC.

HUNTSMAN ETHYLENEAMINES LLC

HUNTSMAN FUELS LLC

HUNTSMAN INTERNATIONAL FINANCIAL LLC

HUNTSMAN INTERNATIONAL FUELS LLC

HUNTSMAN INTERNATIONAL TRADING CORPORATION

HUNTSMAN MA INVESTMENT CORPORATION

HUNTSMAN MA SERVICES CORPORATION

HUNTSMAN PETROCHEMICAL LLC

HUNTSMAN PETROCHEMICAL PURCHASING CORPORATION

HUNTSMAN PROCUREMENT CORPORATION

HUNTSMAN PROPYLENE OXIDE LLC

HUNTSMAN PURCHASING, LTD.

POLYMER MATERIALS INC.

TIOXIDE AMERICAS LLC

TIOXIDE GROUP

 

 

Exchange and Registration Rights Agreement

 

 

November 12, 2010

 

Citigroup
Global Markets Inc.

388 Greenwich Street

New York, New York 
10013

 

Ladies
and Gentlemen:

 

Huntsman
International LLC, a Delaware limited liability company (the “Company”),
proposes to issue and sell to the Purchaser (as defined herein) upon the terms
set forth in the Purchase Agreement (as defined herein) $180,000,000 aggregate
principal amount of the Company’s 8 5/8% Senior Subordinated Notes due 2021, which are guaranteed on a senior
subordinated basis by each of the guarantors listed on Schedule I hereto.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Indenture” shall mean the Indenture, dated as of September 24,
2010, between the Company, the Guarantors and Wells Fargo Bank, N.A., as
Trustee, as the same shall be amended from time to time relating to the
Securities.

 

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

 

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

 

“Purchase Agreement” shall mean the Purchase Agreement, dated as
of October 28, 2010, among the Purchaser, the Guarantors and the Company
relating to the Securities.

 

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

 

“Registrable Securities” shall mean the Securities; provided, however, that a Security shall cease to be a
Registrable Security when (i) in the circumstances contemplated by Section 2(a)
hereof, the Security has been exchanged for an Exchange Security in an Exchange
Offer as contemplated in Section 2(a) hereof (provided
that any 

 

3

 

Exchange
Security that, pursuant to the last two sentences of Section 2(a), is included
in a prospectus for use in connection with resales by broker-dealers shall be
deemed to be a Registrable Security with respect to Sections 5, 6 and 9 until
resale of such Security has been effected within the 120-day period referred to
in Section 2(a)); (ii) in the circumstances contemplated by Section 2(b)
hereof, a Shelf Registration Statement registering such Security under the
Securities Act has been declared or becomes effective and such Security has
been sold or otherwise transferred by the holder thereof pursuant to and in a
manner contemplated by such effective Shelf Registration Statement; (iii) such
Security is sold pursuant to Rule 144 under circumstances in which any legend
borne by such Security relating to restrictions on transferability thereof,
under the Securities Act or otherwise, is removed by the Company or pursuant to
the Indenture; (iv) such Security may be sold to the public in accordance with
Rule 144 per the person that is not an “affiliate” (as defined in Rule 144) of
the Company where no conditions of Rule 144 are then applicable (other than the
holding period requirement in paragraph (d) of Rule 144, so long as such
holding period requirement is satisfied at such time of determination); or (v)
such Security shall cease to be outstanding.

 

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

 

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

 

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

 

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

 

“Restricted Holder” shall mean (i) a holder that is an affiliate
of the Company within the meaning of Rule 405, (ii) a holder who acquires
Exchange Securities outside the ordinary course of such holder’s business,
(iii) a holder who has arrangements or understandings with any person to
participate in the Exchange Offer for the purpose of distributing Exchange
Securities and (iv) a holder that is a broker-dealer, but only with respect to
Exchange Securities received by such broker-dealer pursuant to an Exchange
Offer in exchange for Registrable Securities acquired by the broker-dealer
directly from the Company.

 

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

 

“Securities” shall mean, collectively, the $180,000,000 in
aggregate principal amount of the Company’s 8 5/8% Senior Subordinated Notes due 2021 to be issued and sold to the
Purchaser pursuant to the Purchase Agreement, and securities issued in exchange
therefor or in lieu thereof pursuant to the Indenture (other than Exchange Securities).  Each Security is entitled to the benefit of
the Guarantee provided for in the Indenture and, unless the context otherwise
requires, any reference herein to a “Security,” 

 

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an
“Exchange Security” or a “Registrable Security” shall include a reference to
the related Guarantee.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2.             Registration Under the
Securities Act.

 

(a)           Except as set forth in Section 2(b) below, the Company and
the Guarantors agree to use their reasonable best efforts to file under the
Securities Act a registration statement relating to offers to exchange (such
registration statement, the “Exchange Registration Statement,” and such
offers, collectively, the “Exchange Offer”) any and all of the
Registrable Securities for a like aggregate principal amount of debt securities
issued by the Company and guaranteed by the Guarantors, which debt securities
and guarantee are substantially identical to the Securities and the related
Guarantees, respectively (and are entitled to the benefits of a trust indenture
which is substantially identical to the Indenture and which has been qualified
under the Trust Indenture Act), except that they have been registered pursuant
to an effective registration statement under the Securities Act and do not
contain provisions for registration rights or the Special Interest contemplated
in Section 2(c) below (such new debt securities and guarantee hereinafter
called “Exchange Securities”). 
The Company and the Guarantors agree to use their reasonable best
efforts to cause the Exchange Registration Statement to become effective under
the Securities Act no later than August 9, 2011.  The Exchange Offer will be registered under
the Securities Act on the appropriate form and will comply with all applicable
tender offer rules and regulations under the Exchange Act.  The Company further agrees to use its
reasonable best efforts to commence and complete the Exchange Offer within 45
days after the date the Exchange Registration Statement is declared effective
by the Commission, hold the Exchange Offer open for at least 20 days (or longer
if required by applicable law) and  exchange
Exchange Securities for all Registrable Securities that have been properly
tendered and not withdrawn on 

 

5

 

or prior to the expiration of the Exchange
Offer.  The Exchange Offer will be deemed
to have been “completed” only if the debt securities  and
related guarantee received by holders other than Restricted Holders in the
Exchange Offer for Registrable Securities are, upon receipt, transferable by
each such holder without restriction under the Securities Act and without
material restrictions under the blue sky or securities laws of a substantial
majority of the States of the United States of America, it being understood
that broker-dealers receiving Exchange Securities will be subject to certain
prospectus delivery requirements with respect to resale of the Exchange
Securities.  The Exchange Offer shall be
deemed to have been completed upon the earlier to occur of (i) the Company
having exchanged the Exchange Securities for all outstanding Registrable
Securities pursuant to the Exchange Offer and (ii) the Company having
exchanged, pursuant to the Exchange Offer, Exchange Securities for all
Registrable Securities that have been properly tendered and not withdrawn
before the expiration of the Exchange Offer, which shall be on a date that is
at least 20 days following the commencement of the Exchange Offer.  The Company and the Guarantors agree (x) to
include in the Exchange Registration Statement a prospectus for use in any
resales by any holder of Exchange Securities that is a broker-dealer and (y) to
keep such Exchange Registration Statement effective for a period (the “Resale
Period”) beginning when Exchange Securities are first issued in the
Exchange Offer and ending upon the earlier of the expiration of the 120th day
after the Exchange Offer has been completed or such time as such broker-dealers
no longer own any Registrable Securities. 
With respect to such Exchange Registration Statement, such holders shall
have the benefit of the rights of indemnification and contribution set forth in
Sections 6(a), (c), (d) and (e) hereof.

 

Each
holder that participates in the Exchange Offer will be required, as a condition
to its participation in the Exchange Offer, to represent to the Company in
writing (which may be contained in the applicable letter of transmittal) (i)
that any Exchange Securities to be received by it will be acquired in the
ordinary course of its business, (ii) that at the time of the commencement of
the Exchange Offer, such holder has no arrangement or understanding with any
Person to participate in the distribution (within the meaning of the Securities
Act) of the Exchange Securities in violation of the Securities Act, (iii) that
such holder is not an “affiliate” of the Company as such term is defined in
Rule 405 promulgated under the Securities Act, (iv) if such holder is a
broker-dealer, that it is not engaged in, and does not intend to engage in, the
distribution of Exchange Securities; and (v) if such holder is a broker-dealer
that will receive Exchange Securities for its own account in exchange for
Securities that were acquired as a result of market-making or other trading
activities (an “Exchanging Dealer”), that it will deliver a prospectus
in connection with the resale of such Exchange Securities.  A broker-dealer that is not able to make the
representation in clause (v) above will not be permitted to participate in the
Exchange Offer.

 

(b)           If on or prior to the time the Exchange Offer is
completed, any law or the existing Commission interpretations are changed such
that (i) the debt securities or the related guarantee received by holders other
than Restricted Holders in the Exchange Offer for Registrable Securities are
not or would not be, upon receipt, transferable by each such holder without
restriction under the Securities Act, (ii) for any other reason the Exchange
Offer has not been completed within 45 days after August 9, 2011 or (iii) the
Exchange Offer is not available to any holder of the Securities by reason of
U.S. law or Commission policy (other than due solely to the status of such
holder as an affiliate of the Company within the meaning of the Securities Act
or as an Exchanging Dealer), the Company and the Guarantors shall, in lieu of
(or, 

 

6

 

in the case of clause (iii), in addition to)
conducting the Exchange Offer contemplated by Section 2(a), file under the
Securities Act as soon as practicable, and cause to become or be declared
effective no later of 90 days after the time such obligation to file arises, a “shelf”
registration statement providing for the registration of, and the sale on a
continuous or delayed basis by the holders of, all of the Registrable
Securities, pursuant to Rule 415 or any similar rule that may be adopted by the
Commission (such filing, the “Shelf Registration” and such registration
statement, the “Shelf Registration Statement”).  The Company and the Guarantors agree to use
its reasonable best efforts (x) to cause the Shelf Registration Statement to
become or be declared effective and to keep such Shelf Registration Statement
continuously effective for a period ending on the earlier of the second
anniversary of the Effective Time or such time as there are no longer any
Registrable Securities outstanding; provided, however, that (I) no holder shall be entitled to be named as
a selling securityholder in the Shelf Registration Statement or to use the
prospectus forming a part thereof for resales of Registrable Securities unless
such holder is an Electing Holder and (II) the Company shall be permitted to
take any action that would suspend the effectiveness of a Shelf Registration
Statement or result in holders covered by a Shelf Registration Statement not
being able to offer and sell such Securities if (i) such action is required by
law or (ii) such action is taken by the Company in good faith and for valid
business reasons involving a material undisclosed event, and (y) after the
Effective Time of the Shelf Registration Statement, within 30 days following
the request of any holder of Registrable Securities that is not then an
Electing Holder, to take any action reasonably necessary to enable such holder
to use the prospectus forming a part thereof for resales of Registrable
Securities, including, without limitation, any action necessary to identify
such holder as a selling securityholder in the Shelf Registration Statement; provided, however, that nothing in this clause (y) shall
relieve any such holder of the obligation to return a completed and signed
Notice and Questionnaire to the Company in accordance with Section 3(d)(iii)
hereof.  The Company further agrees to
supplement or make amendments to the Shelf Registration Statement, as and when
required by the rules, regulations or instructions applicable to the
registration form used by the Company for such Shelf Registration Statement or
by the Securities Act or rules and regulations thereunder for shelf
registration, and the Company agrees to furnish to each Electing Holder copies
of any such supplement or amendment prior to its being used or promptly
following its filing with the Commission.

 

(c)           In the event that (i) the Exchange Registration Statement
or Shelf Registration Statement has not become effective or been declared
effective by the Commission on or before the date on which such registration
statement is required to become or be declared effective pursuant to Section
2(a) or 2(b), respectively, or (ii) the Exchange Offer has not been completed
within 45 business days after the initial effective date of the Exchange
Registration Statement relating to the Exchange Offer (if the Exchange Offer is
then required to be made) or (iii) any Exchange Registration Statement or Shelf
Registration Statement required by Section 2(a) or 2(b) hereof is filed and
declared effective but shall thereafter either be withdrawn by the Company or
shall become subject to an effective stop order issued pursuant to Section 8(d)
of the Securities Act suspending the effectiveness of such registration
statement (except as specifically permitted herein) without being succeeded
immediately by an additional registration statement filed and declared
effective (each such event referred to in clauses (i) through (iv), a “Registration
Default” and each period during which a Registration Default has occurred
and is continuing, a “Registration Default Period”), then, as liquidated
damages for such Registration Default, subject to the provisions of Section
9(b), special interest (“Special Interest”), in addition 

 

7

 

to the Base Interest, shall accrue at a per annum
rate of 0.125% for the first 90 days of the Registration Default Period, at a
per annum rate of 0.25% for the second 90 days of the Registration Default
Period, at a per annum rate of 0.375% for the third 90 days of the Registration
Default Period and at a per annum rate of 0.5% thereafter for the remaining
portion of the Registration Default Period; provided, however,
that Special Interest shall not accrue if the failure of the Company to comply
with its obligations hereunder is a result of the failure of any of the
holders, underwriters, Purchaser or placement or sales agents to fulfill their
respective obligations hereunder; and provided, further, Special Interest shall only accrue until, but
excluding, the earlier of (1) the date on which such Registration Default has
been cured or (2) the date on which the Securities accruing such Special
Interest cease to be Registrable Securities. 
Special Interest accrued for any period shall be payable at the relevant
interest payment date for such period under the terms of the applicable series
of Securities.

 

(d)           Notwithstanding the foregoing: (1) the amount of Special
Interest that accrues will not increase because more than one Registration
Default has occurred and is pending; (2) a holder of Registrable Securities or
Exchange Securities who is not entitled to the benefits of the Shelf
Registration Statement (including, but not limited to any such holder who has
not returned a completed and signed Notice and Questionnaire to the Company in
accordance with Section 3(d)(iii) hereof) will not be entitled to Special
Interest with respect to a Registration Default that pertains to the Shelf
Registration Statement; and (3) a holder of Registrable Securities constituting
an unsold allotment from the original sale of the notes or who otherwise is not
entitled to participate in the Exchange Offer will not be entitled to the
accrual of Special Interest by reason of a Registration Default that pertains
to the Exchange Offer.

 

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

 

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

 

3.             Registration Procedures.

 

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

 

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

 

8

 

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

 

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

 

(i)      use their reasonable best efforts to prepare and file with the
Commission an Exchange Registration Statement on any form which may be utilized
by the Company and the Guarantors and which shall permit the Exchange Offer and
resales of Exchange Securities by broker-dealers during the Resale Period to be
effected as contemplated by Section 2(a), and use its best reasonable efforts
to cause such Exchange Registration Statement to become effective no later than
August 9, 2011;

 

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

 

(iii)    after the Effective Time of the Exchange Registration Statement
and during the Resale Period promptly notify each broker-dealer that has
requested copies of the prospectus included in such registration statement, and
confirm such advice in writing, (A) with respect to such Exchange Registration
Statement or any post-effective amendment, when the same has become effective,
(B) of the issuance by the Commission of any stop order suspending the
effectiveness of such Exchange Registration Statement or the initiation or
threatening of any proceedings for that purpose, (C) of the receipt by the
Company of any notification with respect to the suspension of the qualification
of the Exchange Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, or (D) at any time during the
Resale Period when a prospectus is required to be delivered under the
Securities Act, that such Exchange Registration Statement, prospectus,
prospectus amendment or supplement or post-effective amendment does not conform
in all material respects to the applicable requirements of the Securities Act
and the Trust Indenture Act 

 

9

 

and the rules and
regulations of the Commission thereunder or contains an untrue statement of a
material fact or omits to state any material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the
circumstances then existing, which such notice, in the case of clauses (B), (C)
and (D) shall require any broker-dealer to suspend the use of such prospectus
until further notice;

 

(iv)    in the event that the Company and the Guarantors would be
required, pursuant to Section 3(c)(iii)(D) above, to notify any broker-dealers
holding Exchange Securities, prepare and furnish to each such holder a
reasonable number of copies of a prospectus supplemented or amended so that, as
thereafter delivered to purchasers of such Exchange Securities during the
Resale Period, such prospectus shall conform in all material respects to the
applicable requirements of the Securities Act and the Trust Indenture Act and
the rules and regulations of the Commission thereunder and shall not contain an
untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing; provided, however,
the Company shall not be required to amend or supplement such prospectus if (i)
not permitted by law or (ii) the Company in good faith and for valid business
reasons determines that to do so would involve disclosing a material
undisclosed event;

 

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

 

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

 

(vii)   provide an ISIN and a CUSIP number for all
Exchange Securities, not later than the applicable Effective Time; and

 

10

 

(viii)  comply with all applicable rules and
regulations of the Commission, and make generally available to its
securityholders as soon as practicable but no later than 18 months after the
effective date of such Exchange Registration Statement, an earning statement of
the Company and its subsidiaries complying with Section 11(a) of the Securities
Act (including, at the option of the Company, Rule 158 thereunder).

 

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

 

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

 

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

 

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

 

(iv)    after the Effective Time of the Shelf Registration Statement,
except as permitted hereunder, as soon as reasonably practicable prepare and
file with the Commission such amendments and supplements to such Shelf
Registration Statement and the prospectus included therein as may be necessary
to effect and maintain the effectiveness of such Shelf Registration Statement
for the 

 

11

 

period specified in Section
2(b) hereof and as may be required by the applicable rules and regulations of
the Commission and the instructions applicable to the form of such Shelf
Registration Statement, and furnish to the Electing Holders copies of any such
supplement or amendment simultaneously with or prior to its being used or filed
with the Commission;

 

(v)     comply with the provisions of the Securities Act with respect to
the disposition of all of the Registrable Securities covered by such Shelf
Registration Statement in accordance with the intended methods of disposition
by the Electing Holders provided for in such Shelf Registration Statement;

 

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

 

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

 

12

 

necessary to make the
statements therein not misleading in light of the circumstances then existing;

 

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

 

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

 

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

 

13

 

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

 

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

 

(xiii)  unless any Registrable Securities shall be in
book-entry only form, cooperate with the Electing Holders and the managing
underwriters, if any, to facilitate the timely preparation and delivery of
certificates representing 

 

14

 

Registrable Securities to be
sold, which certificates, if so required by any securities exchange upon which
any Registrable Securities are listed, shall be penned, lithographed or
engraved, or produced by any combination of such methods, on steel engraved
borders, and which certificates shall not bear any restrictive legends; and, in
the case of an underwritten offering, enable such Registrable Securities to be
in such denominations and registered in such names as the managing underwriters
may request at least two business days prior to any sale of the Registrable
Securities;

 

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

 

(xv)   whether or not an agreement of the type referred to in Section
3(d)(xiv) hereof is entered into and whether or not any portion of the offering
contemplated by the Shelf Registration is an underwritten offering or is made
through a placement or sales agent or any other entity, (A) make such
representations and warranties to the Electing Holders and the placement or
sales agent, if any, therefor and the underwriters, if any, thereof in form,
substance and scope as are customarily made in connection with an offering of
debt securities pursuant to any appropriate agreement or to a registration
statement filed on the form applicable to the Shelf Registration; (B) obtain an
opinion of counsel to the Company in customary form and covering such matters,
of the type customarily covered by such an opinion, as the managing
underwriters, if any, or as any Electing Holders of at least 20% in aggregate
principal amount of the Registrable Securities at the time outstanding may
reasonably request, addressed to such Electing Holder or Electing Holders and
the placement or sales agent, if any, therefor and the underwriters, if any,
thereof and dated the effective date of such Shelf Registration Statement (or
if such Shelf Registration Statement contemplates an underwritten offering of a
part or all of the Registrable Securities, dated the date of the closing under
the underwriting agreement relating thereto) (it being agreed that the matters
to be covered by such opinion shall include the due incorporation, organization
or formation and good standing of the Company and the Guarantors; the
qualification of the Company and the Guarantors to transact business as foreign
corporations; the due authorization, execution and delivery of the relevant
agreement, if any, of the type referred to in Section 3(d)(xiv) hereof; the due
authorization, execution, authentication and issuance, and the validity and
enforceability, of the Securities; the absence of governmental approvals
required to be obtained in connection with the Shelf Registration, the offering
and sale of the Registrable Securities, this Exchange and Registration Rights
Agreement or any agreement of the type referred to in Section 

 

15

 

3(d)(xiv) hereof, except
such approvals as may have been obtained or may be required under state
securities or blue sky laws; the material compliance as to form of such Shelf
Registration Statement and any documents incorporated by reference therein and of
the Indenture with the requirements of the Securities Act and the Trust
Indenture Act and the rules and regulations of the Commission thereunder,
respectively; and, if addressed to any underwriters, as of the date of the
opinion and of the Shelf Registration Statement or most recent post-effective
amendment thereto, as the case may be, the absence from such Shelf Registration
Statement and the prospectus included therein, as then amended or supplemented,
and from the documents incorporated by reference therein (in each case other
than the financial statements and other financial or accounting information
contained therein) of an untrue statement of a material fact or the omission to
state therein a material fact necessary to make the statements therein not
misleading (in the case of such documents, in the light of the circumstances
existing at the time that such documents were filed with the Commission under
the Exchange Act)); (C) obtain a “cold comfort” letter or letters from the
independent certified public accountants of the Company addressed to the
selling Electing Holders, the placement or sales agent, if any, therefor or the
underwriters, if any, thereof, dated (i) the effective date of such Shelf
Registration Statement and (ii) the effective date of any prospectus supplement
to the prospectus included in such Shelf Registration Statement or
post-effective amendment to such Shelf Registration Statement which includes
unaudited or audited financial statements as of a date or for a period
subsequent to that of the latest such statements included in such prospectus
(and, if such Shelf Registration Statement contemplates an underwritten
offering pursuant to any prospectus supplement to the prospectus included in
such Shelf Registration Statement or post-effective amendment to such Shelf
Registration Statement which includes unaudited or audited financial statements
as of a date or for a period subsequent to that of the latest such statements
included in such prospectus, dated the date of the closing under the
underwriting agreement relating thereto), such letter or letters to be in
customary form and covering such matters of the type customarily covered by
letters of such type; and (D) deliver such documents and certificates,
including officers’ certificates, as may be reasonably requested by any
Electing Holders of at least 20% in aggregate principal amount of the
Registrable Securities at the time outstanding or the placement or sales agent,
if any, therefor and the managing underwriters, if any, thereof to evidence the
accuracy of the representations and warranties made pursuant to clause (A)
above or those contained in Section 5(a) hereof and the compliance with or
satisfaction of any agreements or conditions contained in the underwriting
agreement or other agreement entered into by the Company or the Guarantors;

 

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

 

16

 

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

 

(xviii) comply with all
applicable rules and regulations of the Commission, and make generally
available to its securityholders as soon as practicable but in any event not
later than 18 months after the effective date of such Shelf Registration
Statement, an earning statement of the Company and its subsidiaries complying
with Section 11(a) of the Securities Act (including, at the option of the
Company, Rule 158 thereunder).

 

(e)           In the event that the Company would
be required, pursuant to Section 3(d)(viii)(D) above, to notify the Electing
Holders, the placement or sales agent, if any, therefor and the managing underwriters,
if any, thereof, the Company shall as soon as reasonably practicable prepare
and furnish to each of the Electing Holders, to each placement or sales agent,
if any, and to each such underwriter, if any, a reasonable number of copies of
a prospectus supplemented or amended so that, as thereafter delivered to
purchasers of Registrable Securities, such prospectus shall conform in all
material respects to the applicable requirements of the Securities Act and the
Trust Indenture Act and the rules and regulations of the Commission thereunder
and shall not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing; provided, however, the
Company shall not be required to amend or supplement such prospectus if (i) not
permitted by law or (ii) the Company in good faith and for valid business
reasons determines that to do so would involve disclosing a material
undisclosed event.  Each Electing Holder
agrees that upon receipt of any notice from the Company pursuant to Section
3(d)(viii)(D) hereof, such Electing Holder shall forthwith discontinue the
disposition of Registrable Securities pursuant to the Shelf Registration
Statement applicable to such Registrable Securities until such Electing Holder
shall have received copies of such amended or supplemented prospectus, and if
so directed by the Company, such Electing Holder shall deliver to the Company
(at the Company’s expense) all copies, other than permanent file copies, then
in such Electing Holder’s possession of the prospectus covering such
Registrable Securities at the time of receipt of such notice.

 

(f)            In the event of a Shelf
Registration, in addition to the information required to be provided by each
Electing Holder in its Notice and Questionnaire, the Company may require such
Electing Holder to furnish to the Company such additional information regarding
such Electing Holder and such Electing Holder’s intended method of distribution
of Registrable Securities as may be required in order to comply with the
Securities Act.  Each such Electing
Holder agrees to (i) notify the Company as promptly 

 

17

 

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

 

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

 

4.             Registration Expenses.

 

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

 

18

 

or
sales agent therefor or underwriter thereof, the Company shall reimburse such
person for the full amount of the reasonable Registration Expenses so incurred,
assumed or paid promptly after receipt of a request therefor.  Notwithstanding the foregoing, the holders of
the Registrable Securities being registered shall pay all agency fees and
commissions and underwriting discounts and commissions attributable to the sale
of such Registrable Securities and the fees and disbursements of any counsel or
other advisors or experts retained by such holders (severally or jointly),
other than the counsel and experts specifically referred to above.

 

5.             Representations and
Warranties.

 

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

 

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

 

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

 

19

 

to the Company by a holder
of Registrable Securities, a placement or sales agent or an underwriter
expressly for use therein.

 

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

 

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

 

6.             Indemnification.

 

(a)           Indemnification by the
Company and the Guarantors.  The
Company and the Guarantors, jointly and severally, will indemnify and hold
harmless each of the holders of Registrable Securities included in an Exchange
Registration Statement, each broker dealer selling Exchange Securities during
the Resale Period, and each of the Electing Holders of Registrable Securities
included in a Shelf Registration Statement against any losses, claims, damages
or liabilities, joint or several, to which such holder may become subject under
the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in
any Exchange Registration Statement or Shelf Registration Statement, as the
case may be, under which such Registrable Securities were registered under the
Securities Act, or any preliminary, final or summary prospectus contained
therein or furnished by the Company to any such holder, or any amendment or
supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse
such holder for any out-of-pocket legal or other expenses reasonably incurred
by them in

 

20

 

connection with investigating or defending any such
action or claim as such expenses are incurred; provided,
however, that (i) neither the Company nor any Guarantor shall
be liable to any such person in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon an untrue statement
or alleged untrue statement or omission or alleged omission made in such
registration statement, or preliminary, final or summary prospectus, or
amendment or supplement thereto, in reliance upon and in conformity with
written information furnished to the Company by any holder, placement or sales
agent or underwriter expressly for use therein 
and (ii) such indemnity with respect to any preliminary prospectus
shall not inure to the benefit of any holder, placement agent or underwriter
(or any person controlling such person) to the extent that any loss, claim,
damage or liability of such person results from the fact that such person sold
Securities to a person as to whom it shall be established that there was not
sent or given, a copy of the final prospectus (or the final prospectus as
amended or supplemented) at or prior to the confirmation of the sale of such
Securities to such person if (x) the Company has previously furnished
copies thereof in sufficient quantity to such indemnified person and the loss,
claim, damage or liability of such indemnified person results from an untrue
statement or omission of a material fact contained in such preliminary
prospectus which was corrected in the final prospectus (or the final prospectus
as amended or supplemented) and (y) such loss, liability, claim, damage or
expense would have been eliminated by the delivery of such corrected final
prospectus or the final prospectus as then amended or supplemented.

 

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

 

(c)           Notices of Claims, Etc.  Promptly after receipt by an
indemnified party under Section 6(a) or Section 6(b) above
of written notice of the commencement of any action, 

 

21

 

such indemnified party shall, if a claim in respect
thereof is to be made against an indemnifying party pursuant to the
indemnification provisions of or contemplated by this Section 6, notify
such indemnifying party in writing of the commencement of such action; but the
omission so to notify the indemnifying party shall not relieve it from any
liability which it may have to any indemnified party otherwise than under the
indemnification provisions of or contemplated by Section 6(a) or 6(b) above.  In case any such action shall be brought
against any indemnified party and it shall notify an indemnifying party of the
commencement thereof, such indemnifying party shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the
indemnifying party), and, after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, such
indemnifying party shall not be liable to such indemnified party for any legal
expenses of other counsel or any other expenses, in each case subsequently
incurred by such indemnified party, in connection with the defense thereof
other than reasonable costs of investigation. 
In no event shall the indemnifying parties be liable for fees and
expenses of more than one counsel (in addition to any local counsel) separate
from their own counsel for all indemnified parties in connection with any one
action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances.  No indemnifying party shall, without the
written consent of the indemnified party, effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or
threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or
potential party to such action or claim) unless such settlement, compromise or
judgment (i) includes an unconditional release of the indemnified party
from all liability arising out of such action or claim and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act by or on behalf of any indemnified party. 
No indemnifying party shall be liable under this Section 6(c) for
any settlement of any claim or action effected without its consent, which
consent shall not be unreasonably withheld.

 

(d)           Contribution.  If for any reason the
indemnification provisions contemplated by Section 6(a) or Section 6(b) above
are unavailable to or insufficient to hold harmless an indemnified party in
respect of any losses, claims, damages or liabilities (or actions in respect
thereof) referred to therein, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of such
losses, claims, damages or liabilities (or actions in respect thereof) in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party and the indemnified party in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities (or actions in
respect thereof), as well as any other relevant equitable considerations.  The relative fault of such indemnifying party
and indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact relates to information supplied by
such indemnifying party or by such indemnified party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.  The parties
hereto agree that it would not be just and equitable if contributions pursuant
to this Section 6(d) were determined by pro rata allocation (even if
the holders or any agents or underwriters or all of them were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to in this Section 6(d).  The amount paid or payable by an 

 

22

 

indemnified party as a result of the losses, claims,
damages, or liabilities (or actions in respect thereof) referred to above shall
be deemed to include any legal or other fees or expenses reasonably incurred by
such indemnified party in connection with investigating or defending any such
action or claim.  Notwithstanding the
provisions of this Section 6(d), no holder shall be required to contribute
any amount in excess of the amount by which the proceeds received by such
holder from the sale of any Registrable Securities (after deducting any fees,
discounts and commissions applicable thereto) exceeds the amount of any damages
which such holder has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission, and no underwriter
shall be required to contribute any amount in excess of the amount by which the
total price at which the Registrable Securities underwritten by it and
distributed to the public were offered to the public exceeds the amount of any
damages which such underwriter has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. 
The holders’ and any underwriters’ obligations in this Section 6(d) to
contribute shall be several in proportion to the principal amount of
Registrable Securities registered or underwritten, as the case may be, by them
and not joint.

 

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

 

7.             Underwritten Offerings.

 

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

 

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

 

23

 

8.             Rule 144.

 

The
Company covenants to the holders of Registrable Securities that to the extent
it shall be required to do so under the Exchange Act, the Company shall timely
file the reports required to be filed by it under the Exchange Act or the
Securities Act (including the reports under Sections 13 and 15(d) of the
Exchange Act referred to in subparagraph (c)(1) of Rule 144 adopted
by the Commission under the Securities Act) and the rules and regulations
adopted by the Commission thereunder, and shall take such further action as any
holder of Registrable Securities may reasonably request, all to the extent
required from time to time to enable such holder to sell Registrable Securities
without registration under the Securities Act within the limitations of the
exemption provided by Rule 144 under the Securities Act, as such Rule may
be amended from time to time, or any similar or successor rule or
regulation hereafter adopted by the Commission. 
Upon the request of any holder of Registrable Securities in connection
with that holder’s sale pursuant to Rule 144, the Company shall deliver to
such holder a written statement as to whether it has complied with such
requirements.

 

9.             Miscellaneous.

 

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

 

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

 

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

 

(d)           Parties in Interest.  All the terms and provisions of this Exchange
and Registration Rights Agreement shall be binding upon, shall inure to the
benefit of and shall be 

 

24

 

enforceable by the parties hereto and the holders
from time to time of the Registrable Securities and the respective successors
and assigns of the parties hereto and such holders.  In the event that any transferee of any
holder of Registrable Securities shall acquire Registrable Securities, in any
manner, whether by gift, bequest, purchase, operation of law or otherwise, such
transferee shall, without any further writing or action of any kind, be deemed
a beneficiary hereof for all purposes and such Registrable Securities shall be
held subject to all of the terms of this Exchange and Registration Rights
Agreement, and by taking and holding such Registrable Securities such
transferee shall be entitled to receive the benefits of, and be conclusively
deemed to have agreed to be bound by all of the applicable terms and provisions
of this Exchange and Registration Rights Agreement.  If the Company shall so request, any such
successor, assign or transferee shall agree in writing to acquire and hold the
Registrable Securities subject to all of the applicable terms hereof.

 

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

 

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

 

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

 

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

 

25

 

(i)            Inspection.  For so long as this Exchange and Registration
Rights Agreement shall be in effect, this Exchange and Registration Rights
Agreement and a complete list of the names and addresses of all the holders of
Registrable Securities shall be made available for inspection and copying on
any business day by any holder of Registrable Securities for proper purposes
only (which shall include any purpose related to the rights of the holders of
Registrable Securities under the Securities, the Indenture and this Exchange
and Registration Rights Agreement) at the offices of the Trustee under the
Indenture.

 

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

 

(k)           Severability.  If any provision of this Exchange and
Registration Rights Agreement, or the application thereof in any circumstances,
is held to be invalid, illegal or unenforceable in any respect for any reason,
the validity, legality and enforceability of such provision in every other
respect and of the remaining provisions contained in this Exchange and
Registration Rights Agreement shall not be affected or impaired thereby.

 

26

 

If
the foregoing is in accordance with your understanding, please sign and return
to us four counterparts hereof, and upon the acceptance hereof by you, this
letter and such acceptance hereof shall constitute a binding agreement between
the Purchaser, the Guarantors and the Company.

 

Very
truly yours,

 

 

	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  John R. Heskett

  	
   

  
	
   

  	
  Name:

  	
  John
  R. Heskett

  
	
   

  	
  Title:

  	
  Vice
  President, Planning and Treasurer

  
				

 

 

Signature
Page to Registration Rights Agreement

 

 

	
   

  	
  GUARANTORS

  
	
   

  	
   

  
	
   

  	
  AIRSTAR
  CORPORATION

  
	
   

  	
  HUNTSMAN
  ADVANCED MATERIALS AMERICAS LLC

  
	
   

  	
  HUNTSMAN
  ADVANCED MATERIALS LLC

  
	
   

  	
  HUNTSMAN
  AUSTRALIA INC.

  
	
   

  	
  HUNTSMAN
  CHEMICAL PURCHASING CORPORATION

  
	
   

  	
  HUNTSMAN
  ENTERPRISES, INC.

  
	
   

  	
  HUNTSMAN
  ETHYLENEAMINES LLC

  
	
   

  	
  HUNTSMAN
  FUELS LLC

  
	
   

  	
  HUNTSMAN
  INTERNATIONAL FINANCIAL LLC

  
	
   

  	
  HUNTSMAN
  INTERNATIONAL FUELS LLC

  
	
   

  	
  HUNTSMAN
  INTERNATIONAL TRADING CORPORATION

  
	
   

  	
  HUNTSMAN
  MA INVESTMENT CORPORATION

  
	
   

  	
  HUNTSMAN
  MA SERVICES CORPORATION

  
	
   

  	
  HUNTSMAN
  PETROCHEMICAL LLC

  
	
   

  	
  HUNTSMAN PETROCHEMICAL PURCHASING CORPORATION

  
	
   

  	
  HUNTSMAN
  PROCUREMENT CORPORATION

  
	
   

  	
  HUNTSMAN
  PROPYLENE OXIDE LLC

  
	
   

  	
  HUNTSMAN
  PURCHASING, LTD.

  
	
   

  	
  By:  HUNTSMAN PROCUREMENT
  CORPORATION, its General Partner

  
	
   

  	
  POLYMER
  MATERIALS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John R. Heskett

  
	
   

  	
   

  	
  Name:
  John R. Heskett

  
	
   

  	
   

  	
  Title:
  Vice President, Planning & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Executed
  as a Deed by

  	
  TIOXIDE
  AMERICAS LLC

  
	
   

  	
   

  	
   

  
	
  for
  and on behalf of 

  	
   

  	
   

  
	
  Tioxide
  Americas LLC

  	
  By:

  	
  /s/
  John R. Heskett

  
	
  in
  the presence of

  	
   

  	
  Name:
  John R. Heskett

  
	
   

  	
   

  	
  Title:
  Vice President, Planning & Treasurer

  
	
  /s/
  Michelle Fujinami

  	
   

  	
   

  	
   

  
	
  Witness

  	
   

  	
   

  	
   

  

 

 

Signature Page to
Registration Rights Agreement

 

 

	
   

  	
  TIOXIDE
  GROUP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  J. Kimo Esplin

  
	
   

  	
   

  	
  Name:

  	
  J.
  Kimo Esplin

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  L. Russell Healy

  
	
   

  	
   

  	
  Name:

  	
  L.
  Russell Healy

  
	
   

  	
   

  	
  Title:

  	
  Director

  

 

 

Signature Page to
Registration Rights Agreement

 

 

	
  Accepted as of the date hereof:

  
	
   

  
	
   

  
	
  CITIGROUP GLOBAL MARKETS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Kirkwood Rowland

  	
   

  
	
   

  	
  Name:

  	
  Kirkwood
  Rowland

  
	
   

  	
  Title:

  	
  Vice
  President

  
				

 

 

Signature Page to
Registration Rights Agreement

 

 

SCHEDULE I

 

	
  GUARANTORS

  	
   

  	
  JURISDICTION

  OF

  ORGANIZATION

  
	
  Airstar
  Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Advanced Materials Americas LLC

  	
   

  	
  Delaware

  
	
  Huntsman
  Advanced Materials LLC

  	
   

  	
  Delaware

  
	
  Huntsman
  Australia Inc.

  	
   

  	
  Utah

  
	
  Huntsman
  Chemical Purchasing Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Enterprises, Inc.

  	
   

  	
  Utah

  
	
  Huntsman
  Ethyleneamines LLC

  	
   

  	
  Texas

  
	
  Huntsman
  Fuels LLC

  	
   

  	
  Texas

  
	
  Huntsman
  International Financial LLC

  	
   

  	
  Delaware

  
	
  Huntsman
  International Fuels LLC

  	
   

  	
  Texas

  
	
  Huntsman
  International Trading Corporation

  	
   

  	
  Delaware

  
	
  Huntsman
  MA Investment Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  MA Services Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Petrochemical LLC

  	
   

  	
  Delaware

  
	
  Huntsman
  Petrochemical Purchasing Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Procurement Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Propylene Oxide LLC

  	
   

  	
  Texas

  
	
  Huntsman
  Purchasing, Ltd.

  	
   

  	
  Utah

  
	
  Polymer
  Materials Inc.

  	
   

  	
  Utah

  
	
  Tioxide
  Americas LLC

  	
   

  	
  Cayman Islands

  
	
  Tioxide
  Group

  	
   

  	
  United Kingdom

  

 

 

Exhibit A

 

Huntsman International LLC

 

INSTRUCTION TO DTC PARTICIPANTS

 

(Date of Mailing)

 

URGENT - IMMEDIATE ATTENTION REQUESTED

 

DEADLINE FOR RESPONSE:  [DATE]
*

 

The
Depository Trust Company (“DTC”) has identified you as a DTC Participant
through which beneficial interests in the Huntsman International LLC (the “Company”)
8 5/8% Senior Subordinated Notes
due 2021 (the “Securities”) are held.

 

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

 

It
is important that beneficial owners of the Securities receive a copy of the
enclosed materials as soon as possible as their rights to have the
Securities included in the registration statement depend upon their returning
the Notice and Questionnaire by [Deadline For Response].  Please forward a copy of the enclosed
documents to each beneficial owner that holds interests in the Securities
through you.  If you require more copies
of the enclosed materials or have any questions pertaining to this matter,
please contact Huntsman International LLC, 500 Huntsman Way, Salt Lake City,
Utah 84108, (801) 532-5200.

 

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

 

 

Huntsman International LLC

 

Notice of Registration Statement

and

Selling Securityholder Questionnaire

 

(Date)

 

Reference
is hereby made to the Exchange and Registration Rights Agreement, dated as of November 12,
2010 (the “Exchange and Registration Rights Agreement”), among Huntsman
International LLC (the “Company”), the Guarantors named therein and the
Purchaser named therein.  Pursuant to the
Exchange and Registration Rights Agreement, the Company has filed with the
United States Securities and Exchange Commission (the “Commission”) a
registration statement on Form [    ]
(the “Shelf Registration Statement”) for the registration and resale
under Rule 415 of the Securities Act of 1933, as amended (the “Securities
Act”), of the Company’s 85/8% Senior
Subordinated Notes due 2021 (the “Securities”).  A copy of the Exchange and Registration
Rights Agreement has been filed as an exhibit to the Shelf Registration
Statement.  All capitalized terms not
otherwise defined herein shall have the meanings ascribed thereto in the
Exchange and Registration Rights Agreement.

 

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

 

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

 

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

 

2

 

ELECTION

 

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

 

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

 

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

 

3

 

QUESTIONNAIRE

 

	
  (1)

  	
  (a)

  	
  Full Legal Name of Selling
  Securityholder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  Address for Notices to
  Selling Securityholder:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
   

  	
   

  
	
   

  	
  Fax:

  	
   

  	
   

  
	
   

  	
  Contact Person:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
  Beneficial Ownership of
  Securities:

  
	
   

  	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Principal amount of
  Registrable Securities beneficially owned:

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Principal amount of
  Securities other than Registrable Securities beneficially owned:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  Beneficial Ownership of
  Other Securities of the Company:

  
					

 

4

 

	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
  State any exceptions here:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (5)

  	
  Relationships with the
  Company:

  
	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
  State any exceptions here:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (6)

  	
  Plan of Distribution:

  
	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  State any exceptions here:

  

 

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

 

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

 

5

 

By
signing below, the Selling Securityholder consents to the disclosure of the
information contained herein in its answers to Items (1) through (6) above
and the inclusion of such information in the Shelf Registration Statement and
related Prospectus.  The Selling
Securityholder understands that such information will be relied upon by the
Company in connection with the preparation of the Shelf Registration Statement
and related Prospectus.

 

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

 

	
   

  	
  (i)

  	
  To
  the Company:

  	
  Huntsman
  International LLC

  
	
   

  	
   

  	
   

  	
  500
  Huntsman Way

  
	
   

  	
   

  	
   

  	
  Salt
  Lake City, Utah 84108

  
	
   

  	
   

  	
   

  	
  Attention:
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  With
  a copy to:

  	
  Vinson &
  Elkins L.L.P.

  
	
   

  	
   

  	
   

  	
  2300
  First City Tower

  
	
   

  	
   

  	
   

  	
  1001
  Fannin

  
	
   

  	
   

  	
   

  	
  Houston,
  TX 77002

  
	
   

  	
   

  	
   

  	
  Attention:
  David Stone

  

 

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

 

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

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Selling
  Securityholder

  
	
   

  	
   

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

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

6

 

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

 

Huntsman International LLC

500 Huntsman Way

Salt Lake City, Utah  84108

 

7

 

Exhibit B

 

NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT

 

 

[        ]

Huntsman
International LLC

[c/o       ]

[                                ]

[                                ]

 

Attention:  Huntsman Administrator

 

Re:            Huntsman International LLC
(the “Company”)

8 5/8% Senior Subordinated Notes
due 2021

 

Dear
Sirs:

 

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

 

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

 

Dated:

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Authorized
  Signature)Exhibit 10.1

 

Execution Version

 

THIRD AMENDMENT TO CREDIT AGREEMENT

 

THIS
THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of November 12,
2010, is entered into by and among CONTINENTAL MATERIALS CORPORATION, a
Delaware corporation (the “Company”), the financial institutions that
are or may from time to time become parties to the Credit Agreement referenced
below (together with their respective successors and assigns, the “Lenders”
and each, a “Lender”) and THE PRIVATEBANK AND TRUST COMPANY, an Illinois
state chartered bank as Administrative Agent for each Lender (the “Administrative
Agent”).  Capitalized terms used
herein and not otherwise defined shall have the meanings given to such terms in
the Credit Agreement referenced below.

 

WHEREAS,
the Lender previously made available to the Company a credit facility pursuant
to the terms and conditions of that certain Credit Agreement, dated as of April 16,
2009, by and among the Company, the Lender and the Administrative Agent, as
amended by that certain First Amendment to Credit Agreement, dated as of November 18,
2009, by and among the Company, the Lender and the Administrative Agent (the “First
Amendment”), and as further amended by that certain Waiver and Second
Amendment to Credit Agreement, dated as of April 15, 2010, by and among
the Company, the Lender and the Administrative Agent (the “Second Amendment”)
(as further amended, restated or supplemented from time to time, the “Credit
Agreement”);

 

WHEREAS,
pursuant to the Credit Agreement, the Lender previously (i) made available
to the Company a revolving credit facility in the amount of $20,000,000
(reduced to $13,500,000 from and after October 1, 2010 pursuant to the
Second Amendment), and (ii) funded a term loan in the original principal amount
of $10,000,000; and

 

WHEREAS,
the parties to this Amendment desire to amend the Credit Agreement to, among
other things, (i) extend the maturity date of the Revolving Loan and Term
Loan to December 31, 2011, and (ii) modify the Minimum Adjusted EBITDA
covenant set forth in Section 11.13.1 of the Credit Agreement, in
each case, all on the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the premises, to induce the Lender and
Administrative Agent to enter into this Amendment, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, it is hereby agreed by the parties hereto as follows:

 

Section 1.  Incorporation of Recitals.  The foregoing recitals are hereby
incorporated into and made a part of this Amendment.

 

Section 2.  Amendment of the Credit Agreement.  It is hereby agreed and understood that,
subject to the complete fulfillment and performance of the conditions precedent
set forth in Section 5 of this Amendment, the Credit Agreement is
hereby amended and modified as follows:

 

A.                                   Section 1.1.  Section 1.1
of the Credit Agreement is hereby amended as follows:

 

1

 

(1)                                  The definition of “Term Loan Maturity Date” is hereby deleted in
its entirety and replaced with the following:

 

“Term
Loan Maturity Date means the earlier of (a) December 31, 2011 or (b) the
Termination Date.”

 

(2)                                  The definition of “Termination Date” is hereby deleted in its
entirety and replaced with the following:

 

“Termination
Date means the earlier to occur of (a) December 31, 2011 or (b) such
other date on which the Commitments terminate pursuant to Section 6
or Section 13.”

 

B.                                     Section 11.13.1.  Section 11.13.1
(Minimum Adjusted EBITDA) of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

 

“11.13.1                              Minimum Adjusted EBITDA.  Not permit Adjusted EBITDA for any
Computation Period to be less than the applicable amount set forth below for
such Computation Period:

 

	
  Computation

  Period Ending

  	
   

  	
  Adjusted EBITDA

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  January 1, 2011

  	
   

  	
  $

  	
  250,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  April 2, 2011

  	
   

  	
  $

  	
  (600,000

  	
  )

  
	
   

  	
   

  	
   

  	
   

  
	
  July 2, 2011

  	
   

  	
  $

  	
  2,100,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  October 1, 2011

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31, 2011

  	
   

  	
  $

  	
  500,000

  	
  ”

  

 

Section 3.  Revolving Loan Note and Term Loan Note.  It is hereby agreed and understood that the
Revolving Loan Note and the Term Loan Note remain in full force and effect and
that the Obligations evidenced thereby remain due and payable on the terms set
forth therein and in the Credit Agreement (as modified by this Amendment).

 

Section 4.  Amendment of the Loan Documents.  It is hereby agreed and understood by the
Administrative Agent, each Lender and the Company that, subject to the complete
fulfillment and performance of the conditions precedent set forth in Section 5
of this Amendment and effective as of the effective date of this Amendment,
each reference to the Credit Agreement, the Revolving Loan, the Term Loan, the
Revolving Loan Note, the Term Loan Note, and/or any other defined terms or any
Loan Documents in any Loan Documents shall be deemed to be a reference to any
such defined terms or such agreements as such terms or agreements are amended
or modified by this Amendment.  Any
breach of any representation, warranty, covenant 

 

2

 

or agreement contained in this Amendment shall be
deemed to be an Event of Default for all purposes of the Credit Agreement.

 

Section 5.  Conditions Precedent.  The effectiveness of this Amendment and the
obligations of the Administrative Agent and each Lender hereunder are subject
to the satisfaction, or waiver by the Administrative Agent, of the following
conditions precedent on or before the date hereof (unless otherwise provided or
agreed to by the Administrative Agent) in addition to the conditions precedent
specified in Section 12.2 of the Credit Agreement:

 

A.                                   The Company shall have paid and/or reimbursed
all reasonable fees, costs and expenses relating to this Amendment and owed to
the Lender pursuant to the Credit Agreement in connection with this Amendment.

 

B.                                     The Company shall have delivered, or caused to
be delivered, original fully completed, dated and executed originals of (i) this
Amendment, and (ii) such other certificates, instruments, agreements or
documents as the Administrative Agent may reasonably request (each of the
foregoing certificates, instruments, agreements and documents described in this
Section 5(B) (other than this Amendment) which constitute Loan
Documents are hereinafter referred to collectively as the “Other Documents”).

 

C.                                     The following statements shall be true and
correct and the Company, by executing and delivering this Amendment to the
Lender and the Administrative Agent, hereby certifies that the following
statements are true and correct as of the date hereof:

 

(1)                                  Other than as expressly contemplated by this Amendment, since the date of
the most recent financial statements furnished by the Company to the
Administrative Agent (which financial statements were true and correct in all
material respects and otherwise conformed to the requirements set forth in the
Credit Agreement for such financial statements), there shall have been no
change which has had or will have a material adverse effect on the business,
operations, properties or financial condition of the Loan Parties taken as a
whole;

 

(2)                                  The representations and warranties of the Company set forth in the Credit
Agreement and the other Loan Documents (as amended by this Amendment) are true
and correct in all respects on and as of the date of this Amendment with the
same effect as though made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date, and no
Unmatured Event of Default or Event of Default has occurred and is continuing;
and

 

(3)                                  No consents, licenses or approvals are required in connection with the
execution, delivery and performance by the Company of this Amendment or the
Other Documents or the validity or enforceability against the Company of this
Amendment or the Other Documents which have not been obtained and delivered to
the Lender.

 

3

 

Section 6.  Miscellaneous.

 

A.                                   Except as expressly amended and modified by
this Amendment, the Credit Agreement and the other Loan Documents are and shall
continue to be in full force and effect in accordance with the terms thereof.

 

B.                                     This Amendment may be executed by the parties
hereto in counterparts, and all of such counterparts taken together shall be
deemed to constitute one and the same instrument.

 

C.                                     This Amendment shall be construed in
accordance with and governed by the internal laws, and not the laws of
conflict, of the State of Illinois.

 

D.                                    The headings contained in this Amendment are
for ease of reference only and shall not be considered in construing this
Amendment.

 

[SIGNATURE PAGES FOLLOW]

 

4

 

IN
WITNESS WHEREOF, the parties hereto have caused this Third Amendment to Credit
Agreement to be duly executed as of the day and year first above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  CONTINENTAL
  MATERIALS CORPORATION 

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Joseph
  J. Sum 

  
	
   

  	
   

  	
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADMINISTRATIVE
  AGENT AND LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  PRIVATEBANK AND TRUST COMPANY 

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Steven
  M. Cohen 

  
	
   

  	
   

  	
  Managing
  Director & Senior Vice President

  

 

5

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