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Exhibit 10.34  

EXHIBIT A  

 
 

REGISTRATION RIGHTS AGREEMENT    
    

        This
Registration Rights Agreement (this "Agreement") is made and entered into as of June 17, 2005, by and among Focus
Enhancements, Inc., a Delaware corporation (the "Company"), and the purchasers signatory hereto (each such purchaser, a
"Purchaser" and collectively, the "Purchasers"). 

        This
Agreement is made pursuant to the Securities Purchase Agreement, dated as of the date hereof among the Company and the Purchasers (the "Purchase
Agreement"). 

        The
Company and the Purchasers hereby agree as follows: 

        1.    Definitions.    Capitalized terms used and not otherwise defined herein that are defined in the Purchase
Agreement shall have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings: 

        "Advice" shall have the meaning set forth in Section 6(d). 

        "Effectiveness Date" means, with respect to the Registration Statement required to be filed hereunder, the earlier of (a) the 90th
calendar day (120th in the event of a review by the Commission) following the date of the Purchase Agreement, and (b) the seventh Trading Day following the date on which the Company is notified
by the Commission that the Registration Statement will not be reviewed or is no longer subject to further review and comments. 

        "Effectiveness Period" shall have the meaning set forth in Section 2(a). 

        "Event" shall have the meaning set forth in Section 2(b). 

        "Event Date" shall have the meaning set forth in Section 2(b). 

        "Filing Date" means, with respect to the Registration Statement required to be filed hereunder, the 50th calendar day following the
Closing Date. 

        "Holder" or "Holders" means the holder or holders, as the case may be, from time to time
of Registrable Securities. 

        "Indemnified Party" shall have the meaning set forth in Section 5(c). 

        "Indemnifying Party" shall have the meaning set forth in Section 5(c). 

        "Losses" shall have the meaning set forth in Section 5(a). 

        "Proceeding" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened. 

        "Prospectus" means the prospectus included in the Registration Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 

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        "Registrable Securities" means all of the Shares and the Warrant Shares, together with any shares of Common Stock issued or issuable upon
any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing. 

        "Registration Statement" means the registration statements required to be filed hereunder, including (in each case) the Prospectus,
amendments and supplements to the registration statement or Prospectus, including pre-and post-effective amendments, all exhibits thereto, and all material incorporated by
reference or deemed to be incorporated by reference in the registration statement. 

        "Rule 415" means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule. 

        "Rule 424" means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule. 

        2.    Registration.    

        (a)   On
or prior to the Filing Date, the Company shall prepare and file with the Commission the Registration Statement covering the resale of all of the Registrable
Securities for an offering to be made on a continuous basis pursuant to Rule 415. The Registration Statement required hereunder shall be on Form S-3 (except if the Company is
not then eligible to register for resale the Registrable Securities on Form S-3, in which case the Registration shall be on another appropriate form in accordance herewith). The
Registration Statement required hereunder shall contain (except if otherwise directed by the Holders) substantially the "Plan of Distribution" attached
hereto as Annex A. Subject to the terms of this Agreement, the Company shall use its best efforts to cause the
Registration Statement to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event not later than the Effectiveness Date, and shall use its
best efforts to keep the Registration Statement continuously effective under the Securities Act until the date when all Registrable Securities covered by the Registration Statement have been sold or
may be sold without volume restrictions pursuant to Rule 144(k) as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the
Company's transfer agent and the affected Holders (the "Effectiveness Period"). 

        (b)   If:
(i) a Registration Statement is not filed on or prior to the Filing Date (if the Company files a Registration Statement without affording the Holder the
opportunity to review and comment on the same as required by Section 3(a), the Company shall not be deemed to have satisfied this clause (i)), or (ii) the Company fails to file
with the Commission a request for acceleration in accordance with Rule 461 promulgated under the Securities Act, within seven Trading Days of the date that the Company is notified in writing by
the Commission that a Registration Statement will not be "reviewed," or is not subject to further review, or (iii) prior to the date when such Registration Statement is first declared effective
by the Commission, the Company fails to file a pre-effective amendment and otherwise respond in writing to comments made by the Commission in respect of such Registration Statement
within 20 calendar days after the receipt of comments by or notice from the Commission that such amendment is required in order for a Registration Statement to be declared effective, or (iv) a
Registration Statement filed or required to be filed hereunder is not declared effective by the Commission on or before the Effectiveness Date, or (v) after a Registration Statement is first
declared effective by the Commission, it ceases for any reason to remain continuously effective as to all Registrable Securities for which it is required to be effective, or the Holders are not
permitted to utilize the Prospectus therein to resell such Registrable Securities, for in any such case 10 calendar consecutive days but no more than an aggregate of 15 calendar days during any
12 month period 

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(which
need not be consecutive Trading Days)(any such failure or breach being referred to as an "Event," and for purposes of clause (i) or
(iv) the date on which such Event occurs, or for purposes of clause (ii) the date on which such seven Trading Day period is exceeded, or for purposes of clause (iii) the date
which such 20 calendar days is exceeded, or for purposes of clause (v) the date on which such 10 or 15 calendar day period, as applicable, is exceeded being referred to as
"Event Date"), then in addition to any other rights the Holders may have hereunder or under applicable law: (x) on each such applicable Event
Date the Company shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to 1.0% of the aggregate purchase price paid by such Holder pursuant to the
Purchase Agreement for any Registrable Securities then held by such Holder; and (y) on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by
such date) until the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty, 1.5% of the aggregate purchase price paid by
such Holder pursuant to the Purchase Agreement for any Registrable Securities then held by such Holder. If the Company fails to pay any partial liquidated damages pursuant to this Section in full
within seven days after the date payable, the Company will pay interest thereon at a rate of 12% per annum (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder,
accruing daily from the date such partial liquidated damages are due until such amounts, plus all such interest thereon, are paid in full. The partial liquidated damages pursuant to the terms hereof
shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event. 

        3.    Registration Procedures    

        In
connection with the Company's registration obligations hereunder, the Company shall: 

        (a)   Not
less than five Trading Days prior to the filing of the Registration Statement or any related Prospectus or any amendment or supplement thereto, (i) furnish to
the Holders copies of all such documents proposed to be filed (including documents incorporated or deemed incorporated by reference to the extent requested by such Person) which documents will be
subject to the review of such Holders, and (ii) cause its officers and directors, counsel and independent certified public accountants to respond to such inquiries as shall be necessary, in the
reasonable opinion of respective counsel to conduct a reasonable investigation within the meaning of the Securities Act. The Company shall not file the Registration Statement or any such Prospectus or
any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities shall reasonably object in good faith, provided that the Company is notified of such objection in
writing no later than four Trading Days after the Holders have been so furnished copies of such documents. Each Holder agrees to furnish to the Company a completed Questionnaire in the form attached
to this Agreement as Annex B (a "Selling Shareholder Questionnaire") not less than two Trading Days prior to the Filing Date or by the end of the fourth
Trading Day following the date on which such Holder receives draft materials in accordance with this Section. 

        (b)   (i) Prepare
and file with the Commission such amendments, including post-effective amendments, to the Registration Statement and the Prospectus used
in connection therewith as may be necessary to keep the Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with
the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be
amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible to any
comments received from the Commission with respect to the Registration Statement or any amendment thereto and, as promptly as reasonably possible, upon request, provide the Holders true and complete
copies of all correspondence from and to the Commission relating to the Registration Statement; and 

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(iv) comply
in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by the Registration
Statement during the applicable period in accordance with the intended methods of disposition by the Holders thereof set forth in the Registration Statement as so amended or in such Prospectus as so
supplemented. 

        (c)   Notify
the Holders of Registrable Securities to be sold as promptly as reasonably possible and (if requested by any such Person) confirm such notice in writing promptly
following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to the Registration Statement is proposed to be filed; (B) when the Commission
notifies the Company whether
there will be a "review" of the Registration Statement and whenever the Commission comments in writing on the Registration Statement (the Company shall upon request provide true and complete copies
thereof and all written responses thereto to each of the Holders); and (C) with respect to the Registration Statement or any post-effective amendment, when the same has become
effective; (ii) of any request by the Commission or any other Federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or
supplements to the Registration Statement or Prospectus or for additional information; (iii) of the issuance by the Commission or any other federal or state governmental authority of any stop
order suspending the effectiveness of the Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by
the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation
or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or passage of time that makes the financial statements included in the Registration Statement
ineligible for inclusion therein or any statement made in the Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material
respect or that requires any revisions to the Registration Statement, Prospectus or other documents so that, in the case of the Registration Statement or the Prospectus, as the case may be, it will
not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. 

        (d)   Use
commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of the
Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest
practicable moment. 

        (e)   Furnish
to each Holder, without charge, at least one conformed copy of the Registration Statement and each amendment thereto promptly after the filing of such documents
with the Commission. 

        (f)    Promptly
deliver to each Holder, without charge, as many copies of the Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement
thereto as such Persons may reasonably request in connection with resales by the Holder of Registrable Securities. Subject to the terms of this Agreement, the Company hereby consents to the use of
such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any
amendment or supplement thereto, except after the giving on any notice pursuant to Section 3(c). 

        (g)   Prior
to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate with the selling Holders in
connection with the registration or qualification (or exemption from the Registration or qualification) of such 

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Registrable
Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United States as any Holder reasonably requests in writing, to keep each such
Registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such
jurisdictions of the Registrable Securities covered by the Registration Statement; provided, that the Company shall not be required to qualify generally
to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax in any such jurisdiction where it is not then so subject or file a general consent
to service of process in any such jurisdiction. 

        (h)   If
requested by the Holders, cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be
delivered to a transferee pursuant to the Registration Statement, which certificates shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such
Registrable Securities to be in such denominations and registered in such names as any such Holders may request. 

        (i)    Upon
the occurrence of any event contemplated by Section 3(c)(v), as promptly as reasonably possible, prepare a supplement or amendment, including a
post-effective amendment, to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file
any other required document so that, as thereafter delivered, neither the Registration Statement nor such Prospectus will 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, in light of the circumstances under which they were made, not misleading. If the Company notifies the Holders in
accordance with clauses (ii) through (v) of Section 3(c) above to suspend the use of any Prospectus until the requisite changes to such Prospectus have been made, then the Holders
shall suspend use of such Prospectus. The Company will use its best commercial efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company shall be
entitled to exercise its right under this Section 3(i) to suspend the availability of a Registration Statement and Prospectus, subject to the payment of liquidated damages pursuant to
Section 2(b), for a period not to exceed 60 days (which need not be consecutive days) in any 12 month period. 

        (j)    Comply
with all applicable rules and regulations of the Commission. 

        (k)   The
Company may require each Holder to furnish to the Company a certified statement as to the number of shares of Common Stock beneficially owned by such Holder and the
person thereof that has voting and dispositive control over the Shares. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of the
Registrable Securities solely because any Holder fails to furnish such information within three Trading Days of the Company's request, any
liquidated damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise occur solely because of such delay shall be suspended as to such Holder only,
until such information is delivered to the Company. 

        4.    Registration Expenses.    All fees and expenses incident to the performance of or compliance with this Agreement
by the Company shall be borne by the Company whether or not any Registrable Securities are sold pursuant to the Registration Statement. The fees and expenses referred to in the foregoing sentence
shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with the Trading
Market on which the Common Stock is then listed for trading, and (B) in compliance with applicable state securities or Blue Sky laws), (ii) printing expenses (including, without
limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of 

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prospectuses
is reasonably requested by the holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses,
(iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other
Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall be responsible for all of its internal expenses
incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal
or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.
In no event shall the Company be responsible for any broker or similar commissions or, except to the extent provided for in the Transaction Documents, any legal fees or other costs of the Holders. 

        5.    Indemnification    

        (a)    Indemnification by the Company.    The Company shall, notwithstanding any termination of this Agreement,
indemnify and hold harmless each Holder, the officers, directors, agents and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and
against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys' fees) and expenses (collectively,
"Losses"), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in the Registration Statement,
any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which
they were made) not misleading, except to the extent, but only to the extent, that (i) such untrue statements or omissions are based solely upon information regarding such Holder furnished in
writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable
Securities and was reviewed and expressly
approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto (it being understood that the
Holder has approved Annex A hereto for this purpose) or (ii) in the case of an occurrence of an event of the type specified in Sections 3(c)(ii)-(v), the use by such Holder of an outdated or
defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated in
Section 6(d). The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions
contemplated by this Agreement. 

        (b)    Indemnification by Holders.    Each Holder shall, severally and not jointly, indemnify and hold harmless the
Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of
or based solely upon: (x) such Holder's failure to comply with the prospectus delivery requirements of the Securities Act or (y) any untrue or alleged untrue statement of a material fact
contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any
omission or alleged omission of a material fact required to be stated therein or 

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necessary
to make the statements therein not misleading (i) to the extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing
by such Holder to the Company specifically for inclusion in the Registration Statement or such Prospectus or (ii) to the extent that (1) such untrue statements or omissions are based
solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such
Holder's proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement (it being
understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (2) in the case of an
occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that
the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated in Section 6(d). In no event shall the liability of any selling Holder hereunder be
greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation. 

        (c)    Conduct of Indemnification Proceedings.    If any Proceeding shall be brought or asserted against any Person
entitled to indemnity hereunder (an "Indemnified Party"), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the
"Indemnifying Party") in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel
reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such
notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of
competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have prejudiced the Indemnifying Party. 

        An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be
at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed
promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding
(including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall reasonably believe that a material conflict of interest is likely to
exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of one separate
counsel for all Indemnified Parties shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its
written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject
matter of such Proceeding. 

        Subject
to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with
investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written 

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notice
thereof to the Indemnifying Party; provided, that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such
fees and expenses applicable to such actions for which such Indemnified Party is not entitled to indemnification hereunder, determined based upon the relative faults of the parties. 

        (d)    Contribution.    If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an
Indemnified Party (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions,
statements or omissions that resulted in such Losses 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 any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken
or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or
prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any
reasonable attorneys' or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the
extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms. 

        The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of
allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall
be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Holder from the sale of the Registrable Securities subject to the
Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission, except in the
case of fraud by such Holder. 

        The
indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. 

        6.    Miscellaneous    

        (a)    Remedies.    In the event of a breach by the Company or by a Holder, of any of their obligations under this
Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled
to specific performance of its rights under this Agreement. The Company and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a
breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a
remedy at law would be adequate. 

        (b)    No Piggyback on Registrations.    Except as set forth on  Schedule 6(b) attached hereto, neither the Company nor any of
its security holders (other than the Holders in such capacity pursuant hereto) may
include securities of the Company in a Registration Statement other than the Registrable Securities. Except as set forth on Schedule 6(b), no
Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company. Except as set forth on  Schedule 6(b), the Company shall not file any
other registration statement until after the Effective Date. 

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        (c)    Compliance.    Each Holder covenants and agrees that it will comply with the prospectus delivery requirements
of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement. 

        (d)    Discontinued Disposition.    Each Holder agrees by its acquisition of such Registrable Securities that, upon
receipt of a notice from the Company of the occurrence of any event of the kind described in Section 3(c), such Holder will forthwith discontinue disposition of such Registrable Securities
under the Registration Statement until such Holder's receipt of the copies of the supplemented Prospectus and/or amended Registration Statement or until it is advised in writing (the
"Advice") by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company will use its best efforts to ensure that the use of the
Prospectus may be resumed as promptly as it practicable. The Company agrees and acknowledges that any periods during which the Holder is required to discontinue the disposition of the Registrable
Securities hereunder shall be subject to the provisions of Section 2(b). 

        (e)    Piggy-Back Registrations.    If at any time during the Effectiveness Period there is not an
effective Registration Statement covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for
its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under
the Securities Act) or their then equivalents or on Form S-3 relating solely to equity securities to be issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with the stock option or other employee benefit plans, then the Company shall send to each Holder a written notice of such determination and, if within fifteen
days after the date of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such Holder
requests to be registered, subject to customary underwriter cutbacks and discretion exercisable with respect to all holders of registration rights. 

        (f)    Amendments and Waivers.    The provisions of this Agreement, including the provisions of this sentence, may not
be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and each Holder
of the then outstanding Registrable Securities. 

        (g)    Notices.    Any and all notices or other communications or deliveries required or permitted to be provided
hereunder shall be made in accordance with the provisions of the Purchase Agreement. 

        (h)    Successors and Assigns.    This Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of each of the parties and shall inure to the benefit of each Holder. Each Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under the
Purchase Agreement. 

        (i)    Execution and Counterparts.    This Agreement may be executed in any number of counterparts, each of which when
so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile transmission, such
signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the
original thereof. 

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        (j)    Governing Law.    All questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be determined with the provisions of the Purchase Agreement. 

        (k)    Cumulative Remedies.    The remedies provided herein are cumulative and not exclusive of any remedies provided
by law. 

        (l)    Severability.    If any term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and
shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

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

        (n)    Independent Nature of Purchasers' Obligations and Rights.    The obligations of each Holder hereunder are
several and not joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder hereunder. Nothing
contained herein or in any other agreement or document delivered at any closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a
partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holders are in any way acting in concert with respect to such obligations or the transactions
contemplated by this Agreement. Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary
for any other Holder to be joined as an additional party in any proceeding for such purpose. 

        ************************* 

10

 

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

	 
	 	 
	 	 
	 	 

	 	 	FOCUS ENHANCEMENTS, INC.
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

        [SIGNATURE
PAGE OF HOLDERS FOLLOWS] 

11

 
        [PURCHASER'S
SIGNATURE PAGE TO FCSE REGISTRATION RIGHTS AGREEMENT] 

	 
	 	 

	Name of Investing Entity:	 	 

	Signature of Authorized Signatory of Investing entity:	 	 

	Name of Authorized Signatory:	 	 

	Title of Authorized Signatory:	 	 

        [HOLDER
SIGNATURE PAGE] 

12

  

 
 

ANNEX A    
    

 
 

Plan of Distribution

        We
are registering the shares of stock being offered by this prospectus for resale in accordance with certain registration rights granted the selling shareholders, including their
pledgees, donees, transferees or other successors-in-interest, who may sell the shares from time to time, or who may also decide not to sell any or all of the shares that may
be sold under this prospectus. We will pay all registration expenses including, without limitation, all the SEC and blue sky registration and filing fees, printing expenses, transfer agents' and
registrars' fees, and the fees and disbursements of our outside counsel in connection with this offering, but the selling shareholders will pay all selling expenses including, without limitation, any
underwriters' or brokers' fees or discounts relating to the shares registered hereby, or the fees or expenses of separate counsel to the selling shareholders. 

        The
selling stockholders and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their shares of common stock
on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These sales may be at fixed or negotiated prices. The selling stockholders may use any one
or more of the following methods when selling shares: 

	•
	ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers;

	•
	block
trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the
transaction;

	•
	purchases
by a broker-dealer as principal and resale by the broker-dealer for its account;

	•
	an
exchange distribution in accordance with the rules of the applicable exchange;

	•
	privately
negotiated transactions;

	•
	settlement
of short sales;

	•
	broker-dealers
may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;

	•
	a
combination of any such methods of sale;

	•
	through
the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; or

	•
	any
other method permitted pursuant to applicable law. 

        The
selling stockholders may also sell shares under Rule 144 under the Securities Act of 1933, as amended, if available, rather than under this prospectus. 

        Broker-dealers
engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling
stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated. Each selling stockholder does not expect these commissions and
discounts relating to its sales of shares to exceed what is customary in the types of transactions involved. 

        In
connection with the sale of our common stock or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers or other financial institutions,
which may in turn engage in short sales of the common stock in the course of hedging the positions they assume. The selling stockholders may also sell shares of our common stock short and deliver
these securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling stockholders may also enter into option or
other transactions with broker- 

13

 

dealers
or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this
prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction). 

        The
selling stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be "underwriters" within the meaning of the Securities Act in
connection with such sales. Selling shareholders that are either broker-dealers or affiliated with broker-dealers may be deemed to be underwriters within the meaning of the Securities Act in
connection with resale of their shares. Any commissions received by such broker-dealers, affiliates, or agents and any profit on the resale of the shares purchased by them will be deemed to be
underwriting commissions or discounts under the Securities Act. The selling stockholders, have informed us that at the time they purchased our common stock they did not, and currently do not have, any
agreement or understanding, directly or indirectly, with any person to distribute the common stock being sold pursuant to this prospectus. 

        We
are required to pay certain fees and expenses incurred by us incident to the registration of the shares. We have agreed to indemnify the selling stockholders against certain losses,
claims, damages and liabilities, including liabilities under the Securities Act. 

        Because
selling stockholders may be deemed to be "underwriters" within the meaning of the Securities Act, they will be subject to the prospectus delivery requirements of the Securities
Act. In addition, any securities covered by this prospectus that qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than under this
prospectus. Each selling stockholder has advised us that they have not entered into any agreements, understandings or arrangements with any underwriter or broker-dealer regarding the sale of the
resale shares. There is no underwriter or coordinating broker acting in connection with the proposed sale of the resale shares by the selling stockholders. 

        We
agreed to keep this prospectus effective until the earlier of (i) the date on which the shares may be resold by the selling stockholders without registration and without regard
to any volume limitations by reason of Rule 144(e) under the Securities Act or any other rule of similar effect or (ii) all of the shares have been sold pursuant to the prospectus or
Rule 144 under the Securities Act or any other rule of similar effect. The resale shares will be sold only through registered or licensed brokers or dealers if
required under applicable state securities laws. In addition, in certain states, the resale shares may not be sold unless they have been registered or qualified for sale in the applicable state or an
exemption from the registration or qualification requirement is available and is complied with. 

        Under
applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale shares may not simultaneously engage in market making activities with
respect to our common stock for a period of two business days prior to the commencement of the distribution. In addition, the selling stockholders will be subject to applicable provisions of the
Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of shares of our common stock by the selling stockholders or any
other person. We will make copies of this prospectus available to the selling stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the
time of the sale. 

        Except
for the exercise of warrants, we will not receive any of the proceeds from the selling shareholders' sale of our common stock. 

14

  

 
 

ANNEX B    
    

 
 

Focus Enhancements, Inc.    
    
    Selling Securityholder Notice and Questionnaire    
    

        The undersigned beneficial owner of common stock, par value $0.01 per share (the "Common Stock"), of Focus
Enhancements, Inc., a Delaware corporation (the "Company"), (the "Registrable Securities")
understands that the Company has filed or intends to file with the Securities and Exchange Commission (the "Commission") a registration statement on
Form S-3 (the "Registration Statement") for the registration and resale under Rule 415 of the Securities Act of 1933, as
amended (the "Securities Act"), of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement, dated as of
June 17, 2005 (the "Registration Rights Agreement"), among the Company and the Purchasers named therein. A copy of the Registration Rights
Agreement is available from the Company upon request at the address set forth below. All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration
Rights Agreement. 

        Certain
legal consequences arise from being named as a selling securityholder in the Registration Statement and the 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 Registration Statement
and the related prospectus. 

NOTICE  

        The undersigned beneficial owner (the "Selling Securityholder") of Registrable Securities hereby elects to include
the Registrable Securities owned by it and listed below in Item 3 (unless otherwise specified under such Item 3) in the Registration Statement. 

15

 

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

 
 

QUESTIONNAIRE    
    

	 
	 	 
	 	 

	1.    Name.
	

 	
 	

(a)	
 	

Full Legal Name of Selling Securityholder
	

 	
 	

 	
 	

 

	

 	
 	

(b)	
 	

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

 	
 	

 	
 	

 

	

 	
 	

(c)	
 	

Full Legal Name of Natural Control Person (which means a natural person who directly you indirectly alone or with others has power to vote or dispose of the securities covered by the questionnaire):
	

 	
 	

 	
 	

 

	 
	 	 

	2.    Address for Notices to Selling Securityholder:
	

 

	 

	 

	Telephone:	 	 

	Fax:	 	 

	Contact Person:	 	 

	 
	 	 
	 	 

	3.    Beneficial Ownership of Registrable Securities:
	

 	
 	

(a)	
 	

Type and Number of Registrable Securities beneficially owned:
	

 	
 	

 	
 	

 
 
 

	 
	 	 
	 	 

	4.    Broker-Dealer Status:
	

 	
 	

(a)	
 	

Are you a broker-dealer?
	

Yes o    No o
	

 	
 	

Note:	
 	

If yes, the Commission's staff has indicated that you should be identified as an underwriter in the Registration Statement.
	

 	
 	

(b)	
 	

Are you an affiliate of a broker-dealer?
	

Yes o    No o
	 	 	 	 	 

16

 

	

 	
 	

(c)	
 	

If you are an affiliate of a broker-dealer, do you certify that you bought the Registrable Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements or
understandings, directly or indirectly, with any person to distribute the Registrable Securities?
	

Yes o    No o
	

 	
 	

Note:	
 	

If no, the Commission's staff has indicated that you should be identified as an underwriter in the Registration Statement.

	 
	 	 
	 	 

	
5.    Beneficial Ownership of Other Securities of the Company Owned by the Selling Securityholder.
	

 	
 	
Except as set forth below in this Item 5, the undersigned is not the beneficial or registered owner of any securities of the Company other than the Registrable Securities listed above in Item 3.
	

 	
 	

(a)	
 	

Type and Amount of Other Securities beneficially owned by the Selling Securityholder:
	 	 	 	 	 
 

	 
	 	 

	6.    Relationships with the Company:
	

 	
 	
Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities of the undersigned) 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:
	 	 	 
 

        The
undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof at any time while the
Registration Statement remains effective. 

        By
signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 6 and the inclusion of such information in the
Registration Statement and the related prospectus. The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment of the
Registration Statement and the related prospectus. 

        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:	 	 
	 	Beneficial Owner:	 	 

	

 	
 	

 	
 	

By:	
 	

 

	 	 	 	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	 	Title:	 	 	 	 

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

17

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REGISTRATION RIGHTS AGREEMENT

ANNEX A

Plan of Distribution

ANNEX B

Focus Enhancements, Inc. Selling Securityholder Notice and Questionnaire

QUESTIONNAIREQuickLinks
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Exhibit 4.1  

HUNTSMAN LLC  

AND 

THE GUARANTORS NAMED HEREIN,  

AND 

HSBC BANK USA, NATIONAL ASSOCIATION  

as Trustee 

 
 

SUPPLEMENTAL INDENTURE    
    

Dated
as of July 11, 2005 

to

Indenture

Dated
as of June 22, 2004 

111/2%
Senior Notes due 2012 and Senior Floating Rate Notes due 2011 

   
SUPPLEMENTAL INDENTURE, dated as of July 11, 2005 (this "Supplemental Indenture"), between HUNTSMAN LLC, a Utah limited liability company (the
"Company"), the Guarantors named therein and HSBC BANK USA, NATIONAL ASSOCIATION, a national banking association duly organized under the laws of the
United States, as trustee (the "Trustee"). All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the
Indenture. 

        WHEREAS,
the Company, the Guarantors and the Trustee are parties to an Indenture, dated as of June 22, 2004 (the "Indenture"),
pursuant to which the Company issued its 111/2% Senior Notes Due 2012 and its Senior Floating Rate Notes due 2011 (collectively, the
"Notes"); 

        WHEREAS,
the managers of the Company have authorized and approved the amendments to the Indenture set forth herein and delivered to the Trustee resolutions of the Board of Directors to
that effect (the "Amendments"); 

        WHEREAS,
Section 9.02 of the Indenture provides that the Company, the Guarantors and the Trustee may amend the Indenture and the Notes with the consent of the Holders of a
majority in principal amount of the Notes then outstanding; 

        WHEREAS,
the Company have solicited consents pursuant to a Consent Solicitation Statement, dated June 17, 2005, [as supplemented or amended] (the
"Consent Solicitation Statement"), and accompanying Consent Letter, from the Holders of the Notes in connection with the Amendments; 

        WHEREAS,
the Holders of approximately 86.9% in principal amount of the Notes have consented to the Amendments in accordance with Section 9.02 of the Indenture; and 

        WHEREAS,
the execution and delivery of this Supplemental Indenture have been duly authorized and all conditions and requirements necessary to make this Supplemental Indenture a valid and
binding agreement have been duly performed and complied with; 

        NOW,
THEREFORE, for and in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, it is mutually
covenanted and agreed, for the equal proportionate benefit of all Holders of the Notes, as follows: 

ARTICLE I

OPERATION OF AMENDMENTS  

        Section 1.1 Operation of Amendments.    Notwithstanding an earlier execution date, the Amendments
described in Article II of this Supplemental Indenture shall not become operative until such time as the Company has delivered an Officer's Certificate to the Trustee notifying the Trustee that
such Amendments have become operative and certifying that one of the following conditions has been satisfied: 

        (a)   on
or prior to September 30, 2005, the merger of the Company and Huntsman International LLC (the "Merger") has
occurred and the Company has deposited with the Global Bondholder Services Corporation or its successor (the "Information Agent") sufficient funds to
pay the Consent Payment to Consenting Holders (each as defined in the Consent Solicitation Statement) and has irrevocably instructed the Information Agent to make such payment; or 

        (b)   the
Merger has occurred after September 30, 2005 and the Company, on or prior to September 30, 2005, has deposited with the Information Agent sufficient
funds to pay the Consent Payment and has irrevocably instructed the Information Agent to make such payment.

 

ARTICLE II

AMENDMENTS TO INDENTURE  

        Section 2.1 Permitted Indebtedness    

        (a)   Clause (2) of
the definition of "Permitted Indebtedness" is hereby amended and restated to read in its
entirety as set forth below: 

        (2)   Indebtedness
incurred pursuant to the Credit Facilities in an aggregate principal amount not exceeding $3,200 million at any one time outstanding, less
(i) the amount of any payments made by the Company under the Credit Facilities with the Net Cash Proceeds of any Asset Sale (which are accompanied by a corresponding permanent commitment
reduction) pursuant to clause 3(A) of the second sentence of Section 4.15 and (ii) then outstanding Indebtedness of any Securitization Entity after giving effect to the
substantially contemporaneous application of the net proceeds therefrom; provided that, upon and after completion of a merger or other transaction as a
result of which Huntsman Advanced Materials, L.L.C., or its successor ("Admat"), is merged with or into or becomes a Restricted Subsidiary of the
Company, an additional $300 million aggregate principal amount of Indebtedness at any one time outstanding may be incurred pursuant to the Credit Facilities provided that, after giving effect
to such merger or other transaction, the Consolidated Fixed Charge Coverage Ratio of the Company would either (i) not be less than the Consolidated Fixed Charge Coverage Ratio of the Company
determined immediately prior to such merger or other transaction or (ii) be at least 3.0 to 1.0; 

        (b)   Clause (14)
of the definition of "Permitted Indebtedness" is hereby amended and restated to read in its entirety
as set forth below: 

        (14) Indebtedness
of the Company or any Restricted Subsidiary incurred in the ordinary course of business not to exceed $35 million at any time outstanding: 

        (A)  representing
Capitalized Lease Obligations; or 

        (B)  constituting
purchase money Indebtedness incurred to finance property or assets of the Company or any Restricted Subsidiary of the Company acquired in the ordinary
course of business; provided, however, that such purchase money Indebtedness shall not exceed the cost of such property or assets and shall not be
secured by any property or assets of the Company or any Restricted Subsidiary of the Company other than the property and assets so acquired; 

        (c)   Clause (16)
of the definition of "Permitted Indebtedness" is hereby amended and restated to read in its entirety
as set forth below: 

        (16) Indebtedness
of the Company and its Domestic Subsidiaries pursuant to overdraft lines or similar extensions of credit in an aggregate amount not to exceed
$20 million at any one time outstanding and Indebtedness of Foreign Subsidiaries pursuant to overdraft lines or similar extensions of credit in an aggregate principal amount not to exceed
$60 million at any one time outstanding; 

        Section 2.2 Permitted Investments.    Clause (5) of the definition of
"Permitted Investments" is hereby amended and restated to read in its entirety as set forth below: 

        (5)   Investments
in Unrestricted Subsidiaries or joint ventures not to exceed $25 million, plus: 

        (A)  the
aggregate net after-tax amount returned in cash on or with respect to any Investments made in Unrestricted Subsidiaries and joint ventures whether
through interest payments, principal payments, dividends or other distributions or payments;

 

        (B)  the
net after-tax cash proceeds received by the Company or any Restricted Subsidiary from the disposition of all or any portion of such Investments (other
than to a Restricted Subsidiary of the Company); 

        (C)  upon
redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, the fair market value of such subsidiary; provided that such Unrestricted Subsidiary was so
designated after the Issue Date; and 

        (D)  the
net cash proceeds received by the Company from the issuance of Specified Capital Stock. 

        Section 2.3 Tax Sharing Agreement; Unrestricted Subsidiary Designation.    The following
definitions are hereby amended and restated to read in their entirety as follows: 

        "HMP" means HMP Equity Holdings Corporation, a Delaware corporation, any successor thereto or any other entity of which the Company is a
consolidated Subsidiary. 

        "Tax Sharing Agreement" means that certain tax sharing agreement dated September 30, 2002 by and between the Company and HMP, as in
effect on the Issue Date, as such agreement may be modified or replaced in a manner not less favorable in any material respect to the Company than the agreement as in effect on the Issue Date. 

        The
definition of "Unrestricted Subsidiary" is hereby amended to add the following sentence to the end of the second paragraph thereof: 

        Upon
completion of the Merger, the following entities will be deemed to be designated Unrestricted Subsidiaries without further action by the Company and without compliance with
Section 4.03: Huntsman China Investments B.V. 

ARTICLE III

MISCELLANEOUS PROVISIONS  

        Section 3.1    Upon execution and delivery of this Supplemental Indenture, the terms and conditions of this Supplemental
Indenture shall be part of the terms and conditions of the Indenture for any and all purposes, and all the terms and conditions of both shall be read together as though they constitute one and the
same instrument, except that in case of conflict, the provisions of this Supplemental Indenture will control. 

        Section 3.2    Each of the Company, the Guarantors and the Trustee hereby confirms and reaffirms the Indenture, as
amended and supplemented by this Supplemental Indenture. 

        Section 3.3    The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an
original, but all of them together shall represent the same agreement. One signed copy is enough to prove this Supplemental Indenture. 

        Section 3.4    All provisions of this Supplemental Indenture shall be deemed to be incorporated in, and made a part of,
the Indenture; and the Indenture, as amended and supplemented by this Supplemental Indenture, shall be read, taken and construed as one and the same instrument. 

        Section 3.5    The recitals contained herein shall be taken as the statements of the Company or the Guarantors, as
applicable, and the Trustee assumes no responsibility for their correctness. The Trustee shall not be liable or responsible for the validity or sufficiency of this Supplemental Indenture or the due
authorization of this Supplemental Indenture by the Company or the Guarantors. In entering into this Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of the
Indenture relating to the conduct of, affecting the liability of or affording protection to the Trustee, whether or not elsewhere herein so provided.

 

[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the day and year written above. 

	

 	
 	

HUNTSMAN LLC
	

 	
 	

By:	
 	

/s/  SEAN DOUGLAS      
 Sean Douglas

Vice President and Treasurer

 

	

GUARANTORS
	

 	
 	

Huntsman Specialty Chemicals Corporation

Huntsman Specialty Chemicals Holdings Corporation

Huntsman Chemical Purchasing Corporation

Huntsman International Chemicals Corporation

Huntsman International Trading Corporation

Huntsman Petrochemical Purchasing Corporation

Polymer Materials Inc.

Airstar Corporation

Huntsman Procurement Corporation

JK Holdings Corporation

Huntsman Australia Inc.

Huntsman Chemical Finance Corporation

Huntsman Enterprises Inc.

Huntsman Family Corporation

Huntsman Group Holdings Finance Corporation

Huntsman Group Intellectual Property Holdings Corporation

Huntsman International Services Corporation

Huntsman MA Investment Corporation

Huntsman MA Services Corporation

Huntsman Petrochemical Finance Corporation

Huntsman Expandable Polymers Company, LC
	 	 	 	 	By:	 	Huntsman International Chemicals Corporation,

its Manager
	 	 	Huntsman Petrochemical Canada Holdings Corporation

Huntsman Polymers Holdings Corporation

Huntsman Chemical Company LLC

Huntsman Polymers Corporation

Huntsman Purchasing, Ltd.
	 	 	 	 	By:	 	Huntsman Procurement Corporation,

its General Partner
	 	 	Petrostar Industries LLC

Huntsman Headquarters Corporation
	

 	
 	

 	
 	

 	
 	

By:	
 	

/s/  SEAN DOUGLAS      

	 	 	 	 	 	 	Name:	 	Sean Douglas
	 	 	 	 	 	 	Title:	 	Vice President
	

 	
 	

Huntsman Fuels, L.P.
	 	 	 	 	By:	 	Petrostar Fuels LLC,

its General Partner

 

	 	 	Petrostar Fuels LLC
	

 	
 	

 	
 	

 	
 	

By:	
 	

/s/  SAMUEL D. SCRUGGS      

	 	 	 	 	 	 	Name:	 	Samuel D. Scruggs
	 	 	 	 	 	 	Title:	 	Vice President
	

 	
 	

HSBC BANK USA, NATIONAL ASSOCIATION

as Trustee
	 	 	By:	 	/s/  HERAWATTEE ALLI      

	 	 	Name:	 	Herawattee Alli
	 	 	Title:	 	Assistant Vice President

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SUPPLEMENTAL INDENTURE

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