Document:

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EXECUTION COPY

EXHIBIT 4.5

NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE
COLLATERAL AGENT, FOR THE RATABLE BENEFIT OF SECURED PARTIES, PURSUANT TO THIS AGREEMENT AND THE
EXERCISE OF ANY RIGHT OR REMEDY BY THE COLLATERAL AGENT AND THE OTHER SECURED PARTIES HEREUNDER
WITH RESPECT TO THE SECOND LIEN COLLATERAL (AS DEFINED IN THE INTERCREDITOR AGREEMENT DESCRIBED
BELOW), ARE SUBJECT TO THE PROVISIONS OF SUCH INTERCREDITOR AGREEMENT. IN THE EVENT OF ANY
CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT
WITH RESPECT TO THE SECOND LIEN COLLATERAL, THE PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL
CONTROL. SEE SECTION 7.10.

PLEDGE AGREEMENT

     THIS PLEDGE AGREEMENT (as amended, supplemented, amended and restated or otherwise modified
from time to time, this “Agreement”), dated as of March 29, 2007, is made by STERLING
CHEMICALS, INC., a Delaware corporation (the “Company”), STERLING CHEMICALS ENERGY, INC., a
Delaware corporation (“Energy”), and each other Person (such capitalized term and all other
capitalized terms not otherwise defined herein shall have the meanings provided for or incorporated
by reference in Article I below) that may from time to time become, pursuant to the terms
of the Indenture, a party to this Agreement (each such Person and Energy individually a
“Guarantor” and, together with all such other Persons and Energy, collectively, the
“Guarantors” and, together with the Company, the “Pledgors”), in favor of U. S.
BANK NATIONAL ASSOCIATION, as collateral agent for the Secured Parties (together with its
successors and assigns in such capacity, the “Collateral Agent”).

RECITALS:

     A. Pursuant to an Indenture, dated as of the date hereof (as amended, supplemented, amended
and restated or otherwise modified from time to time, the “Indenture”), among the Company,
Energy and U.S. Bank, as Collateral Agent and as trustee (in such capacity, the “Trustee”),
the Company has issued $150,000,000 of its 101/4% Senior Secured Notes due 2015 (together with any
additional notes and any exchange notes that may be issued by the Company from time to time
thereunder and any other 101/4% Senior Secured Notes due 2015 issued in replacement or substitution
therefor, the “Notes”).

     B. Pursuant to an Amended and Restated Revolving Credit Agreement, dated as of the date hereof
(as amended, supplemented, amended and restated or otherwise modified from time to time, the
“Credit Agreement”), among the Company, Energy, the various financial institutions as are,
or may from time to time become, parties thereto (the “Lenders”), and The CIT
Group/Business Credit, Inc, as administrative agent (the “Administrative Agent”), the

 

 

Lenders and the Issuer (as defined therein) have extended commitments to make credit
extensions to the Company and Energy.

     C. The Collateral Agent and the Administrative Agent have entered into that certain
Intercreditor Agreement, dated as of the date hereof (as amended, supplemented, amended and
restated or otherwise modified from time to time, the “Intercreditor Agreement”), which
agreement, among other things, sets forth, as between the Collateral Agent and the Administrative
Agent, the relative priority of their respective Liens on the Second Lien Collateral (as defined
therein) and their rights with respect thereto.

     D. Each Pledgor desires to secure its Obligations under the Indenture, the Notes, the Note
Guarantees and each other Indenture Document to which it is a party (collectively, the “Secured
Obligations”) by granting to the Collateral Agent, for the benefit of the Secured Parties,
Liens on the Collateral as set forth herein.

     E. As a condition precedent to the issuance of the Notes by the Company under the Indenture,
each Pledgor is required to execute and deliver this Agreement.

     F. Each Pledgor has duly authorized the execution, delivery and performance of this Agreement.

     G. It is in the best interest of each Pledgor to execute this Agreement inasmuch as such
Pledgor will derive substantial direct and indirect benefits from the Notes issued from time to
time to by the Company pursuant to the Indenture.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and in order to induce (i) the Holders to make an investment in the Notes and
(ii) U.S. Bank to act as Trustee and Collateral Agent under the Indenture Documents in such
capacities, each Pledgor jointly and severally agrees, for the benefit of each Secured Party, as
follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1 Certain Terms. The following terms (whether or not underscored) when
used in this Agreement, including its preamble and recitals, shall have the following meanings
(such definitions to be equally applicable to the singular and plural forms thereof):

     “Administrative Agent” is defined in recital B.

     “Agreement” is defined in the preamble.

     “Capital Securities” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) of such
Person’s equity (including any instruments convertible into equity), whether now outstanding or
issued after the Issue Date.

     “Collateral” is defined in Section 2.1.

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     “Collateral Agent” is defined in the preamble.

     “Company” is defined in the preamble.

     “Credit Agreement” is defined in recital B.

     “Distributions” means all stock dividends, liquidating dividends, Capital Securities
resulting from (or in connection with the exercise of) stock splits, reclassifications, warrants,
options, non-cash dividends, mergers or consolidations, and all other distributions (whether
similar or dissimilar to the foregoing) on or with respect to any Pledged Shares or other Capital
Securities constituting Collateral, but shall not include Dividends.

     “Dividends” means cash dividends and cash distributions with respect to any Pledged
Shares or other Pledged Property made in the ordinary course of business, but shall not include
liquidating dividends.

     “Energy” is defined in the preamble.

     “Guarantor” and “Guarantors” are defined in the preamble.

     “Intercreditor Agreement” is defined in recital C.

     “Lenders” is defined in recital B.

     “Notes” is defined in recital A.

     “Pledged Notes” means all promissory notes, bonds or debt instruments at any time
issued to any Pledgor (excluding any promissory notes, bonds or debt instruments with respect to
which the principal amount owed to such Pledgor (other than by the Company or any Subsidiary
thereof) thereunder does not exceed $550,000).

     “Pledged Property” means all Pledged Shares, all other pledged Capital Securities, all
other equity securities, all Pledged Notes, all assignments of any amounts due or to become due
with respect thereto and all other instruments which are now being delivered by any Pledgor to the
Collateral Agent or may from time to time hereafter be delivered by any Pledgor to the Collateral
Agent for the purpose of pledge under this Agreement, and all proceeds of any of the foregoing.

     “Pledged Securities” means all Pledged Notes and all Capital Securities which are now
being or may hereafter be delivered or pledged by any Pledgor to the Collateral Agent hereunder.

     “Pledged Share Issuer” means each Person constituting a Restricted Subsidiary of the
Company identified in Attachment 1 hereto as the issuer of the Pledged Shares identified
opposite the name of such Person and each other Person whose Capital Securities are required to be
pledged hereunder and under the Indenture from time to time.

     “Pledged Shares” means the Capital Securities of any Pledged Share Issuer in the
amounts and percentages listed in Attachment 1 hereto.

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     “Pledgors” are defined in the preamble.

     “Secured Obligations” is defined in recital D.

     “Termination Date” means the earliest to occur of the date on which (a) all Secured
Obligations (other than any contingent indemnification or expense reimbursement Obligations that
are not then due and payable) have been paid in full in cash; (b) the Company exercises its legal
defeasance option or covenant defeasance option described in Section 8.01 of the Indenture; and (c)
the satisfaction and discharge of the Indenture occurs in accordance with Section 8.02 thereof.

     “Trustee” is defined in recital A.

     SECTION 1.2. Security Agreement Definitions. Unless otherwise defined herein or the
context otherwise requires, terms used in this Agreement, including its preamble and recitals, have
the meanings provided (or incorporated by reference) in the Security Agreement.

     SECTION 1.3. U.C.C. Definitions. Unless otherwise defined herein or defined (or
incorporated by reference) in the Security Agreement or the context otherwise requires, terms for
which meanings are provided in the U.C.C. are used in this Agreement, including its preamble and
recitals, with such meanings.

ARTICLE II

PLEDGE

     SECTION 2.1. Grant of Security Interest. Each Pledgor hereby pledges, hypothecates,
assigns, charges, delivers and transfers to the Collateral Agent, for the benefit of each of the
Secured Parties, and hereby grants to the Collateral Agent, for the benefit of the Secured Parties,
a continuing security interest in, all of such Pledgor’s right, title and interest in and to the
following, whether now owned or hereafter acquired by such Pledgor (collectively, the
“Collateral”):

     (a) all issued and outstanding Pledged Shares of each Pledged Share Issuer identified
in Attachment 1 hereto;

     (b) all other Capital Securities of any Pledged Share Issuer issued from time to time
to such Pledgor;

     (c) all Pledged Notes identified in Attachment 1 hereto and all other Pledged
Notes, whether now or hereafter delivered to the Collateral Agent in connection with this
Agreement;

     (d) all other Pledged Property, whether now or hereafter delivered to the Collateral
Agent in connection with this Agreement;

     (e) all Dividends, Distributions and other payments and rights with respect to any
Pledged Property; and

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     (f) all proceeds of any of the foregoing.

     Notwithstanding the foregoing, the “Collateral” shall not include the Capital Securities of
any Subsidiary of a Pledgor that is a CFC or an Unrestricted Subsidiary.

     SECTION 2.2. Security for Secured Obligations. This Agreement secures the payment in
full and in cash of all Secured Obligations.

     SECTION 2.3. Delivery of Pledged Property. All certificates or instruments
representing or evidencing any Collateral, including all certificates or instruments representing
or evidencing Pledged Securities, shall be promptly delivered to and held by the Collateral Agent
pursuant hereto (or to a party who will hold such Pledged Securities pursuant to arrangements
satisfactory to the Collateral Agent in its reasonable discretion), shall be in suitable form for
transfer by delivery and shall be accompanied by all necessary endorsements, instruments of
transfer or assignment, duly executed in blank.

     SECTION 2.4. Dividends, Distributions and Payments on Pledged Securities. In the
event that any Dividend or other cash payment is to be paid on any Pledged Security at a time when
no Event of Default has occurred and is continuing, such Dividend or cash payment may be paid
directly to the applicable Pledgor; provided, however, that all amounts so received
on or after the date that is 30 days after the Issue Date shall be promptly deposited by such
Pledgor into a Deposit Account in which the Collateral Agent has control. If any Event of Default
has occurred and is continuing, then any such Dividend or cash payment shall be paid directly to
the Collateral Agent. In the event that any Distribution consisting of Capital Securities (other
than Distributions with respect to the general partnership interest in S&L Cogeneration Company
described on Attachment 1 hereto) is to be made on any Pledged Security, such Distribution
shall be delivered to and held by or on behalf of the Collateral Agent as Collateral in accordance
with Section 2.3.

     SECTION 2.5. Continuing Security Interest. This Agreement shall create a continuing
security interest in the Collateral and shall:

     (a) remain in full force and effect until the Termination Date;

     (b) be binding upon each Pledgor and its successors, transferees and assigns; and

     (c) inure, together with the rights and remedies of the Collateral Agent hereunder, to
the benefit of the Secured Parties.

Without limiting the foregoing clause (c), any Holder may assign or otherwise transfer (in
whole or in part) any Note held by it to any other Person, and such other Person shall thereupon
become vested with all the rights and benefits in respect thereof granted to such Secured Party
under any Indenture Document or otherwise, subject, however, to any contrary provisions in such
assignment or transfer of the Indenture. Subject to the last sentence of this Section 2.5,
this Agreement (other than the indemnification and expense reimbursement provisions set forth in
Section 6.4 and any other contingent indemnification or expense reimbursement Obligations
expressly provided for herein or in any other Indenture Document to survive the Termination Date)
and the security interest granted herein shall terminate and all rights to the Collateral shall

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revert to each Pledgor on the Termination Date. Additionally, upon the designation of any
Restricted Subsidiary as an Unrestricted Subsidiary in accordance with Section 4.23 of the
Indenture and the Collateral Agent’s receipt of a written request from the Company for the release
of the Capital Securities issued by such Unrestricted Subsidiary from the Lien created hereunder,
the Collateral Agent shall promptly release such Lien, provided that no Default then exists
and the Lien created hereunder encumbering all other Collateral shall remain in full force and
effect. Upon any such termination or release of Collateral, the Collateral Agent will, at each
Pledgor’s sole expense, deliver to such Pledgor, without any representations, warranties or
recourse of any kind whatsoever, all certificates and instruments representing or evidencing all
released Pledged Shares, together with all other released Collateral held by the Collateral Agent
hereunder, and execute and deliver to such Pledgor such documents as such Pledgor shall reasonably
request to evidence such termination or release. Notwithstanding anything to the contrary
contained herein or in any other Indenture Document, each Pledgor agrees that: (i) to the extent
that, after the Termination Date shall have occurred, any payment or any part thereof in respect of
any Secured Obligation is subsequently invalidated, voided, declared to be fraudulent or
preferential, set aside, recovered, rescinded or is required to be retained by or repaid to a
trustee, receiver, or any other Person under any bankruptcy code, common law, or equitable cause,
then the Lien and security interest in the Collateral created hereunder shall be revived,
reinstated and continued in full force and effect, as if said payment had not been made; and (ii)
the Lien and security interest in the Collateral created hereunder shall not be released or
discharged by any payment to the Collateral Agent or any Secured Party from any source that is
thereafter paid, returned or refunded in whole or in part by reason of the assertion of a claim of
any kind relating thereto, including, but not limited to, any claim for breach of contract, breach
of warranty, preference, illegality, invalidity, or fraud asserted by any account debtor or by any
other Person.

     SECTION 2.6. Security Interest Absolute. All rights of the Collateral Agent and the
Liens granted to the Collateral Agent hereunder, and all obligations of each Pledgor hereunder,
shall be absolute and unconditional, irrespective of

     (a) any lack of validity or enforceability of any Indenture Document,

     (b) the failure of any Secured Party

     (i) to assert any claim or demand or to enforce any right or remedy against the
Company, any Guarantor or any other Person under the provisions of the Indenture
Documents or otherwise, or

     (ii) to exercise any right or remedy against any guarantor of, or collateral
securing, any Secured Obligations of any Pledgor,

     (c) any change in the time, manner or place of payment of, or in any other term of, all
or any of the Secured Obligations or any other extension, compromise or renewal of any
Secured Obligation of any Pledgor,

     (d) any reduction, limitation, impairment or termination of any Secured Obligation of
any Pledgor for any reason (other than the repayment in full and in cash of

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all Secured Obligations), including any claim of waiver, release, surrender, alteration
or compromise, and shall not be subject to (and each Pledgor hereby waives any right to or
claim of) any defense or set-off, counterclaim, recoupment or termination whatsoever by
reason of the invalidity, illegality, nongenuineness, irregularity, compromise or
unenforceability of, or any other event or occurrence affecting, any Secured Obligation of
any Pledgor,

     (e) any amendment to, rescission, waiver or other modification of, or any consent to
departure from, any of the terms of the Indenture Documents,

     (f) any addition, exchange, release, surrender or non-perfection of any collateral
(including the Collateral), or any amendment to or waiver or release of or addition to or
consent to departure from any guaranty, for any of the Secured Obligations, or

     (g) any other circumstances which might otherwise constitute a defense available to, or
a legal or equitable discharge of, the Company, any surety or any guarantor (including any
Guarantor).

     SECTION 2.7. Postponement of Subrogation, etc. Each Pledgor hereby agrees that it
will not exercise any rights which it may acquire by reason of any payment made hereunder, whether
by way of subrogation, reimbursement or otherwise, until the Termination Date. Any amount paid to
any Pledgor on account of any payment made hereunder prior to the Termination Date shall be held in
trust for the benefit of the Secured Parties and shall promptly be paid to the Collateral Agent,
for the benefit of the Secured Parties, and credited and applied against the Secured Obligations,
whether matured or unmatured, in accordance with the terms of the Indenture; provided,
however, that if

     (a) any Pledgor has made payment to the Collateral Agent for the benefit of the Secured
Parties of all or any part of the Secured Obligations, and

     (b) the Termination Date has occurred,

each Secured Party agrees that, at such Pledgor’s request, the Collateral Agent, on behalf of the
Secured Parties, will execute and deliver to such Pledgor appropriate documents (without recourse
and without representation or warranty) necessary to evidence the transfer by subrogation to such
Pledgor of an interest in the Secured Obligations resulting from such payment by such Pledgor. In
furtherance of the foregoing, prior to the Termination Date, each Pledgor shall refrain from taking
any action or commencing any proceeding against the Company or any Guarantor (or its successors or
assigns, whether in connection with a bankruptcy proceeding or otherwise) to recover any amounts in
respect of payments made under this Agreement to the Collateral Agent or any other Secured Party.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     Each Pledgor represents and warrants unto each Secured Party, as at the date of each pledge
and delivery hereunder (including each pledge and delivery of Pledged Securities) by such Pledgor
to the Collateral Agent of any Collateral, as set forth in this Article III below.

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     SECTION 3.1. Ownership, No Liens, etc. Such Pledgor is the legal and beneficial
owner of, and has good and valid title to (and has full right and authority to pledge and assign)
the Collateral pledged by it hereunder, free and clear of any Liens other than the Lien created by
this Agreement, any other Collateral Document or any First Lien Collateral Document (as defined in
the Intercreditor Agreement).

     SECTION 3.2. Valid Security Interest. This Agreement creates a valid security
interest in the Collateral in favor of the Collateral Agent, which security interest shall be
perfected and senior to all other Liens with respect to the Collateral upon either (x) with respect
to Collateral consisting of certificated securities or Pledged Notes, the delivery to the
Collateral Agent of the certificates and instruments representing or evidencing such Collateral,
together with duly executed instruments of transfer, or (y) with respect to all Collateral, the
filing of appropriate financing statements with the proper filing office in the appropriate
jurisdictions.

     SECTION 3.3. As to Pledged Shares. As of the date hereof, Attachment 1
hereto accurately identifies (i) the name and jurisdiction of organization of each Pledged Share
Issuer, (ii) the number, class(es) and certificate number(s), if applicable, of the Pledged Shares,
and (iii) the percentage of each class of Capital Securities of each Pledged Share Issuer
represented by such Pledged Shares. In the case of the Pledged Shares of any Subsidiary of such
Pledgor that constitute Collateral, all such Pledged Shares have been duly authorized and validly
issued and are fully paid and nonassessable. No Pledgor has any Subsidiaries (other than
Unrestricted Subsidiaries) of which it directly owns any Capital Securities that are not pledged
hereunder. All Pledged Shares (other than the general partnership interest in S&L Cogeneration
Company described on Attachment 1 hereto) are certificated, have been delivered to the
Collateral Agent accompanied by undated instruments of transfer duly executed in blank, and such
delivery and instruments of transfer are effective to give the Collateral Agent “control” (as
defined in Section 8-106 the U.C.C.) of such Pledged Shares.

     SECTION 3.4. Authorization, Approval, etc. Except as have been obtained or made and
are in full force and effect, no authorization, approval or other action by, and no notice to or
filing with, any Governmental Authority, regulatory body or other Person is required either

     (a) for the pledge by such Pledgor of any Collateral pursuant to this Agreement or for
the execution, delivery and performance of this Agreement by such Pledgor, or

     (b) subject to the terms of the Intercreditor Agreement, for the exercise by the
Collateral Agent of the voting or other rights provided for in this Agreement, or, except
with respect to any Pledged Shares as may be required in connection with a disposition of
such Pledged Shares by laws affecting the offering and sale of securities generally, the
remedies in respect of the Collateral pursuant to this Agreement,

provided, however, that (i) in order to exercise the voting and certain other
rights provided for in this Agreement with respect to a Pledged Share Issuer, the Pledged Shares of
such Pledged Share Issuer must be transferred into the name of the Collateral Agent on the books
and records of such Pledged Share Issuer prior to the exercise of such voting or other rights, and
(ii) the Liens granted hereunder will not be perfected until either (x) with respect to Collateral
consisting of certificated securities or Pledged Notes, the delivery to the Collateral Agent (or
the First Lien

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Agent (as defined in the Intercreditor Agreement) acting as its agent pursuant to Article V of the
Intercreditor Agreement) of the certificates and instruments representing or evidencing such
Collateral, together with duly executed instruments of transfer, or (y) with respect to all
Collateral, the filing of appropriate financing statements with the proper filing office in the
appropriate jurisdictions.

     SECTION 3.5. Compliance with Laws. Such Pledgor is in compliance with the
requirements of all applicable laws (including, the provisions of the Fair Labor Standards Act),
rules, regulations and orders of every Governmental Authority, the non-compliance with which could
reasonably be expected to have a Material Adverse Effect or which could reasonably be expected to
materially adversely affect the value of the Collateral.

ARTICLE IV

COVENANTS

     SECTION 4.1. Protect Collateral; Further Assurances, etc. Except for the Lien
created by this Agreement, any other Collateral Document or any First Lien Collateral Document, no
Pledgor will sell, assign, transfer, pledge, or encumber the Collateral in any other manner (except
as permitted under Section 4.16, Section 5.01 and Section 10.04 of the
Indenture). Each Pledgor will warrant and defend the right and title herein granted unto the
Collateral Agent in and to the Collateral (and all right, title and interest represented by the
Collateral) against the claims and demands of all Persons whomsoever. Subject to the terms of the
Intercreditor Agreement, each Pledgor agrees that at any time, and from time to time, at the
expense of such Pledgor, such Pledgor will promptly execute and deliver all further instruments,
and take all further action, that may be necessary or that the Collateral Agent may reasonably
request, in order to perfect and protect any security interest granted or purported to be granted
hereby or, subject to the terms of the Intercreditor Agreement, to enable the Collateral Agent to
exercise and enforce its rights and remedies hereunder with respect to any Collateral. Each
Pledgor hereby authorizes the Collateral Agent to file one or more financing or continuation
statements, and amendments thereto, relative to all or any part of the Collateral without the
signature of such Pledgor where permitted by law. A carbon, photographic or other reproduction of
this Agreement or any financing statement covering the Collateral or any part thereof shall be
sufficient as a financing statement where permitted by law. No Pledgor will permit any Pledged
Share Issuer that is a Subsidiary of such Pledgor to issue any Capital Securities unless the same
are pledged hereunder and all certificates or instruments representing or evidencing such Capital
Securities are promptly delivered to and held by or on behalf of the Collateral Agent as Collateral
in accordance with Section 2.3.

     SECTION 4.2. Stock Powers, etc. Each Pledgor agrees that all Pledged Securities
delivered by such Pledgor pursuant to this Agreement will be accompanied by duly executed, undated
endorsements, stock powers or other equivalent instruments of transfer reasonably acceptable to the
Collateral Agent. Each Pledgor will, from time to time upon the reasonable request of the
Collateral Agent, promptly deliver to the Collateral Agent such endorsements, stock powers,
instruments and similar documents, reasonably satisfactory in form and substance to the Collateral
Agent, with respect to the Collateral as the Collateral Agent may reasonably request and will,
subject to the terms of the Intercreditor Agreement, from time to time upon the request of the
Collateral Agent after the occurrence and during the continuance of any Event of Default, promptly
cause each Pledged Share Issuer and each maker of each Pledge Note, as

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applicable, to transfer any Pledged Securities constituting Collateral into the name of any
nominee designated in writing by the Collateral Agent.

     SECTION 4.3. Continuous Pledge. Subject to Section 2.4, each Pledgor will,
at all times, keep pledged to the Collateral Agent pursuant hereto all Pledged Shares and all other
Capital Securities constituting Collateral, all Dividends and Distributions with respect thereto,
and all other Collateral and other Capital Securities, instruments, proceeds and rights from time
to time received by or distributable to such Pledgor in respect of any Collateral. Any
Distributions on Pledged Shares consisting of Capital Securities will be certificated (other than
Distributions with respect to the general partnership interest in S&L Cogeneration Company
described on Attachment 1 hereto).

     SECTION 4.4. Voting Rights; Dividends, etc. Each Pledgor agrees:

     (a) if any Event of Default shall have occurred and be continuing, promptly upon
receipt thereof by such Pledgor and without any request therefor by the Collateral Agent, to
deliver (properly endorsed where required hereby or requested by the Collateral Agent) to
the Collateral Agent, all Dividends, Distributions and all proceeds of the Collateral, all
of which shall be held by the Collateral Agent as additional Collateral for use in
accordance with Section 6.3; and

     (b) if any Event of Default shall have occurred and be continuing and the Collateral
Agent shall have notified such Pledgor in writing of the Collateral Agent’s intention to
exercise its voting power under this Section:

     (i) the Collateral Agent may exercise (to the exclusion of such Pledgor) the
voting power and all other incidental rights of ownership with respect to any
Pledged Securities constituting Collateral and such Pledgor hereby grants the
Collateral Agent an irrevocable proxy, exercisable under such circumstances, to vote
the Pledged Securities; and

     (ii) promptly to deliver to the Collateral Agent such additional proxies and
other documents as may be necessary to allow the Collateral Agent to exercise such
voting power.

All Dividends, Distributions and proceeds which may at any time and from time to time be held by a
Pledgor but which such Pledgor is then obligated to deliver to the Collateral Agent, shall, until
delivery to the Collateral Agent, be held by such Pledgor separate and apart from its other
property in trust for the Collateral Agent. The Collateral Agent agrees that unless an Event of
Default shall have occurred and be continuing and the Collateral Agent shall have given the written
notice referred to in this Section, each Pledgor has the exclusive power to exercise all voting and
other consensual rights with respect to any Pledged Securities and the Collateral Agent shall, upon
the written request of such Pledgor, promptly deliver such proxies and other documents, if any, as
shall be reasonably requested by such Pledgor which are necessary to allow such Pledgor to exercise
such powers with respect to any such Pledged Securities; provided, however, that no
vote shall be cast, or consent, waiver or ratification given, or action taken by any Pledgor that
would materially impair the value of any Collateral or be inconsistent with or

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violate any provision of the Indenture Documents (including, without limitation, any action to
foreclose any Lien securing any Pledged Note or to otherwise enforce any Pledged Note).

ARTICLE V

THE COLLATERAL AGENT

     SECTION 5.1. Collateral Agent Appointed Attorney-in-Fact. Subject to the terms of
the Intercreditor Agreement, each Pledgor hereby irrevocably appoints the Collateral Agent as such
Pledgor’s attorney-in-fact, with full authority and in the name, place and stead of the Pledgor or
in its own name, from time to time in the Collateral Agent’s discretion, upon the occurrence and
during the continuance of any Event of Default, to take any action and to execute any instrument
which the Collateral Agent may deem necessary or advisable to accomplish the purposes of this
Agreement, including without limitation:

     (a) to ask, demand, collect, sue for, recover, compromise and receive and give
acquittance and receipts for moneys due and to become due under or in respect of any of the
Collateral;

     (b) to receive, endorse and collect any drafts or other instruments, documents and
chattel paper, in connection with clause (a) above; and

     (c) to file any claims or take any action or institute any proceedings which the
Collateral Agent may deem necessary for the collection of any of the Collateral or otherwise
to enforce the rights of the Collateral Agent with respect to any of the Collateral.

Each Pledgor hereby acknowledges, consents and agrees that the power of attorney granted pursuant
to this Section is irrevocable and coupled with an interest.

     SECTION 5.2. Collateral Agent May Perform. If any Pledgor fails to perform any
agreement contained herein, the Collateral Agent may itself perform, or cause performance of, such
agreement, and the expenses of the Collateral Agent incurred in connection therewith shall be
payable by such Pledgor pursuant to Section 6.4.

     SECTION 5.3. Collateral Agent Has No Duty. The powers conferred on the Collateral
Agent hereunder are solely to protect its interest (on behalf of the Secured Parties) in the
Collateral and shall not impose any duty on it to exercise any such powers. Except for reasonable
care of any Collateral in its possession and the accounting for moneys actually received by it
hereunder, the Collateral Agent shall have no duty as to any Collateral or responsibility for

     (a) ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relative to any Pledged Property, whether or not the
Collateral Agent has or is deemed to have knowledge of such matters, or

     (b) taking any necessary steps to preserve rights against prior parties or any other
rights pertaining to any Collateral.

11

 

     SECTION 5.4. Action Under Agreement. The Collateral Agent shall not be obligated to
take any action under this Agreement except for the performance of such duties as are specifically
set forth herein. The Collateral Agent shall take any action hereunder which is requested by the
Trustee and which is not inconsistent with or contrary to the provisions of this Agreement, the
Indenture or the Intercreditor Agreement; provided, that the Collateral Agent shall not
amend or waive any provision of this Agreement except in accordance with Section 7.2
hereof. At any time when an Event of Default shall have been occurred and be then continuing, the
Collateral Agent shall, subject to the terms of the Intercreditor Agreement, exercise or refrain
from exercising all such rights, powers and remedies as shall be available to it hereunder in
accordance with any written instructions received from the Trustee. The Collateral Agent shall have
the right to decline to follow any such direction if the Collateral Agent, being advised by
counsel, determines that the directed action is not permitted by the terms of this Agreement, the
Indenture or the Intercreditor Agreement, may not lawfully be taken or would involve it in personal
liability, and the Collateral Agent shall not be required to take any such action unless any
indemnity which is required hereunder in respect of such action has been provided. The Collateral
Agent may rely on any such direction given to it by the Trustee and shall be fully protected, and
shall under no circumstances (absent the gross negligence and willful misconduct of the Collateral
Agent) be liable to any of the Pledgors, any of the Holders or any other Person for taking or
refraining from taking action in accordance therewith. Absent written instructions from the Trustee
(a) at a time when an Event of Default shall be outstanding or (b) in the case of an emergency in
order to protect any of the Collateral, the Collateral Agent may, subject to the terms of the
Intercreditor Agreement, take, but shall have no obligation to take, any and all such actions
hereunder or otherwise as it shall deem to be in the best interests of the Holders. Except as
provided in the preceding sentence, in the absence of written instructions (which may relate to the
exercise of specific remedies or to the exercise of remedies in general) from the Trustee, the
Collateral Agent shall not exercise remedies available to it hereunder with respect to the
Collateral or any part thereof.

     SECTION 5.5. Reasonable Care. The Collateral Agent agrees to use reasonable care in
the custody and preservation of any of the Collateral in its possession in accordance with Section
9-207 of the U.C.C.; provided, that (a) the Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of any Collateral in its possession if
such Collateral is accorded treatment substantially similar to that which the Collateral Agent
accords its own property, and (b) it is understood that the Collateral Agent shall have no
responsibility for taking any necessary steps to preserve rights against prior parties with respect
to the Collateral.

ARTICLE VI

REMEDIES

     SECTION 6.1. Certain Remedies.

     (a) If any Event of Default shall have occurred and be continuing, subject with respect
to any Collateral constituting Second Lien Collateral, to the terms of the Intercreditor
Agreement, the Collateral Agent, subject to the terms of the Intercreditor Agreement, may
exercise in respect of the Collateral, in addition to other rights and remedies provided for
herein or otherwise available to it, all the rights and remedies of a

12

 

secured party on default under the U.C.C. (whether or not the U.C.C. applies to the
affected Collateral) and also may, without notice except as specified below (or such other
notices that are required by the U.C.C. (or other applicable law) and cannot be waived by
the Pledgor hereunder), sell the Collateral or any part thereof in one or more parcels at
public or private sale, at any of the Collateral Agent’s offices or elsewhere, for cash, on
credit or for future delivery, and upon such other terms as the Collateral Agent may deem
commercially reasonable. Each Pledgor agrees that, to the extent notice of sale shall be
required by law, at least ten days’ prior notice to such Pledgor of the time and place of
any public sale or the time after which any private sale is to be made shall constitute
reasonable notification. The Collateral Agent shall not be obligated to make any sale of
Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn
any public or private sale from time to time by announcement at the time and place fixed
therefore, and such sale may, without further notice, be made at the time and place to which
it was so adjourned.

     (b) If any Event of Default shall have occurred and be continuing, the Collateral Agent
may, subject to the terms of the Intercreditor Agreement, in addition to other rights and
remedies provided for herein or otherwise available to it,

     (i) transfer all or any part of the Collateral into the name of the Collateral
Agent or its nominee, with or without disclosing that such Collateral is subject to
the Lien and security interest hereunder,

     (ii) notify the parties obligated on any of the Collateral to make payment to
the Collateral Agent of any amount due or to become due thereunder,

     (iii) enforce collection of any of the Collateral by suit or otherwise, and
surrender, release or exchange all or any part thereof, or compromise or extend or
renew for any period (whether or not longer than the original period) any
obligations of any nature of any party with respect thereto,

     (iv) endorse any checks, drafts or other writings in each Pledgor’s name to
allow collection of the Collateral,

     (v) take control of any proceeds of the Collateral and

     (vi) execute (in the name, place and stead of any Pledgor) endorsements,
assignments, stock powers and other instruments of conveyance or transfer with
respect to all or any of the Collateral.

     SECTION 6.2. Compliance with Restrictions. Each Pledgor agrees that in any sale of
any of the Collateral whenever an Event of Default shall have occurred and be continuing, the
Collateral Agent is hereby authorized to comply with any limitation or restriction in connection
with such sale as it may be advised by counsel is necessary in order to avoid any violation of
applicable law (including compliance with such procedures as may restrict the number of prospective
bidders and purchasers, require that such prospective bidders and purchasers have certain
qualifications and restrict such prospective bidders and purchasers to persons who will represent
and agree that they are purchasing for their own account for investment and not with a

13

 

view to the distribution or resale of such Collateral), or in order to obtain any required
approval of the sale or of the purchaser by any Governmental Authority, and the Pledgor further
agrees that such compliance shall not result in such sale being considered or deemed not to have
been made in a commercially reasonable manner, nor shall the Collateral Agent be liable nor
accountable to any Pledgor for any discount allowed by reason of the fact that such Collateral is
sold in compliance with any such limitation or restriction.

     SECTION 6.3. Application of Proceeds. All cash proceeds received by the Collateral
Agent in respect of any sale of, collection from or other realization upon all or any part of the
Collateral shall, subject to the terms of the Intercreditor Agreement, (i) be applied in accordance
with Section 6.10 of the Indenture and (ii) thereafter, to the extent that any such Proceeds
remain, continue to be held by the Collateral Agent as additional collateral security and applied
to any outstanding Secured Obligations in accordance with the preceding clause (i) until the
Termination Date, after which such remaining cash Proceeds shall be paid over to the applicable
Pledgor or to whomsoever may be lawfully entitled to receive such surplus.

     The Pledgors shall remain liable on a joint and several basis for any deficiency.

     SECTION 6.4. Indemnity and Expenses. Each Pledgor hereby jointly and severally
indemnifies and holds harmless the Collateral Agent from and against any and all claims, losses and
liabilities arising out of or resulting from this Agreement (including enforcement of this
Agreement), except claims, losses or liabilities resulting from the Collateral Agent’s gross
negligence or willful misconduct, and each Pledgor will pay (without duplication) to the Collateral
Agent the amount of any and all reasonable out-of-pocket expenses, including the reasonable fees
and disbursements of its counsel and of any experts and agents, which the Collateral Agent may
incur, in each case, in connection with:

     (a) the administration of this Agreement;

     (b) the custody, preservation, use or operation of, or the sale of, collection from or
other realization upon, any of the Collateral;

     (c) the exercise or enforcement of any of the rights of the Collateral Agent hereunder;
or

     (d) the failure by any Pledgor to perform or observe any of the provisions hereof.

ARTICLE VII

MISCELLANEOUS PROVISIONS

     SECTION 7.1. Collateral Document. This Agreement is a Collateral Document executed
pursuant to the Indenture and shall (unless otherwise expressly indicated herein) be construed,
administered and applied in accordance with the terms and provisions thereof.

     SECTION 7.2. Amendments, etc. No amendment to or waiver of any provision of this
Agreement or consent to any departure by any Pledgor herefrom shall be effective unless the same
shall be in writing and signed by (a) subject to Article Nine of the Indenture, the Collateral

14

 

Agent and (b) such Pledgor, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which it is given.

     SECTION 7.3. Protection of Collateral. The Collateral Agent may from time to time,
at its option, and at the expense of the Pledgors, perform any act which any Pledgor agrees
hereunder to perform and which such Pledgor shall fail to perform after being requested in writing
so to perform (it being understood that no such request need be given after the occurrence and
during the continuance of an Event of Default) and the Collateral Agent may from time to time take
any other action which the Collateral Agent reasonably deems necessary for the maintenance,
preservation or protection of any of the Collateral or of its security interest therein.

     SECTION 7.4. Addresses for Notices. All notices and other communications provided
for hereunder shall be in writing and addressed, delivered or transmitted, if to any Pledgor, at
the address or facsimile number of the Company provided for in the Indenture, and, if to the
Collateral Agent, at the address or facsimile number provided for in the Indenture, or to any such
party at such other address or facsimile number as shall be designated by such party in a written
notice to each other party complying as to delivery with the terms of this Section. Any notice,
(a)(i) if mailed and properly addressed with postage prepaid or (ii) if properly addressed and sent
by pre-paid courier service, shall be deemed given when such notice has been received or (b) if
transmitted by facsimile or other electronic transmission, shall be deemed given when transmitted
(and telephonic or electronic confirmation of receipt thereof has been received, provided that if
such confirmation is electronic, it was generated by an affirmative action by or on behalf of the
recipient of such notice, as opposed to an automated E-Mail response)

     SECTION 7.5. Headings. The various headings of this Agreement are inserted for
convenience only, and shall not affect the meaning or interpretation of this Agreement or any
provisions hereof.

     SECTION 7.6 . Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such provision and such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such provision in any
other jurisdiction.

     SECTION 7.7. Governing Law. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

     SECTION 7.8. Counterparts. This Agreement may be executed in several counterparts
and by facsimile or other electronic transmission, each of which counterparts shall be deemed to be
an original (whether such counterpart is originally executed or a facsimile or other electronic
transmission copy of a counterpart that is originally executed) and all of which shall constitute
together but one and the same agreement. This Agreement shall become effective as of the date
first written above.

15

 

     SECTION 7.9. Additional Pledgors. Upon the execution and delivery by any other
Person of an instrument in the form of Annex I hereto, together with the Schedule thereto,
such Person shall become a “Pledgor” hereunder with the same force and effect as if originally
named as a Pledgor herein. The execution and delivery of any such instrument shall not require the
consent of any other Pledgor hereunder. The rights and obligations of each Pledgor hereunder shall
remain in full force and effect notwithstanding the addition of any new Pledgor as a party to this
Agreement.

     SECTION 7.10. Intercreditor Agreement.

     (a) The Liens granted hereunder in favor of the Collateral Agent for the benefit of the
Secured Parties with respect to any Second Lien Collateral (as defined in the Intercreditor
Agreement) and the exercise of any right related thereto thereby shall be subject, in each case, to
the terms of the Intercreditor Agreement.

     (b) In the event of any direct conflict between the express terms and provisions of this
Agreement and of the Intercreditor Agreement with respect to any Second Lien Collateral, the terms
and provisions of the Intercreditor Agreement shall control until the Discharge of First Lien
Obligations (as defined in the Intercreditor Agreement) shall have occurred.

     (c) Notwithstanding anything to the contrary herein, any provision hereof that requires any
Pledgor to (i) deliver any Second Lien Collateral to the Collateral Agent or (ii) provide that the
Collateral Agent have control over such Second Lien Collateral may be satisfied by (A) the delivery
of such Second Lien Collateral by such Pledgor to the First Lien Agent (as defined in the
Intercreditor Agreement) for the benefit of the First Lien Secured Parties (as defined in the
Intercreditor Agreement) and the Collateral Agent for the benefit of the Secured Parties pursuant
to Article V of the Intercreditor Agreement and (B) providing that the First Lien Agent be provided
with control with respect to such Second Lien Collateral of such Pledgor for the benefit of the
First Lien Secured Parties and the Collateral Agent for the benefit of Secured Parties pursuant to
Article V of the Intercreditor Agreement.

[Remainder of this page intentionally left blank; signature page follows]

16

 

     IN WITNESS WHEREOF, each party hereto has caused this Pledge Agreement to be duly executed and
delivered by their respective officers thereunto duly authorized as of the day and year first above
written.

	 	 	 	 	 
	 	 	PLEDGORS:
	 
	 	 	 	 
	 	 	STERLING CHEMICALS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	STERLING CHEMICALS ENERGY, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	COLLATERAL AGENT:
	 
	 	 	 	 
	 	 	U. S. BANK NATIONAL ASSOCIATION, 
	 

	 	as Collateral Agent, on behalf of the Secured Parties

	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

[signature page to Pledge Agreement]

 

 

ATTACHMENT 1

to Pledge Agreement

[To be attached]

Attachment
1 to Pledge Agreement — Page — 1

 

 

ANNEX I

to Pledge Agreement

SUPPLEMENT NO. ___ TO PLEDGE AGREEMENT

     THIS SUPPLEMENT NO. ___, dated as of                     , ___(this “Supplement”), to the
Pledge Agreement, dated as of March 29, 2007 (as amended, supplemented, amended and restated or
otherwise modified from time to time, the “Pledge Agreement’’), among Sterling Chemicals,
Inc., a Delaware corporation (the “Company”), Sterling Chemicals Energy, Inc., a Delaware
corporation (“Energy”) and each other Person (such capitalized term and all other
capitalized terms being used herein with the meanings provided, or incorporated by reference, in
the Pledge Agreement) which from time to time thereafter became a party thereto pursuant to
Section 7.9 thereof (each such Person and Energy is individually referred to herein as a
“Guarantor”, and collectively as the “Guarantors” and, together with the Company,
the “Pledgors”), and U. S. BANK NATIONAL ASSOCIATION (“U.S. Bank”), as Collateral
Agent for each of the Secured Parties, is made by                     , a[n]                                          
(the “Additional Pledgor”).

RECITALS:

     A. Pursuant to an Indenture, dated as of March 29, 2007 (as amended, supplemented, amended and
restated or otherwise modified from time to time, the “Indenture”), among the Company,
Energy and U.S. Bank, as Collateral Agent and as trustee (in such capacity, the “Trustee”),
the Company has on such date issued $150,000,000 of its 101/4% Senior Secured Notes due 2015
(together with any exchange notes and additional notes that may be issued by the Company from time
to time thereunder and any other 101/4% Senior Secured Notes due 2015 issued in replacement or
substitution therefor, the “Notes”).

     B. The Additional Pledgor desires to secure its Secured Obligations by granting to the
Collateral Agent, for the benefit of the Secured Parties, Liens on the Collateral as set forth
herein.

     C. The Additional Pledgor is required to execute and deliver this Supplement pursuant to the
Indenture.

     D. The Additional Pledgor has duly authorized the execution, delivery and performance of this
Supplement and the Pledge Agreement.

     E. It is in the best interest of the Additional Pledgor to execute this Supplement inasmuch as
the Additional Pledgor will derive substantial direct and indirect benefits from the Notes issued
from time to time to by the Company pursuant to the Indenture.

Annex I to Pledge Agreement — Page — 1

 

 

     F. The Pledge Agreement provides that additional parties may become Pledgors under the Pledge
Agreement by execution and delivery of an instrument in the form of this Supplement.

     G. Pursuant to the provisions of Section 7.9 of the Pledge Agreement, the Additional Pledgor
is becoming a Pledgor under the Pledge Agreement.

     H. The Additional Pledgor desires to become a Pledgor under the Pledge Agreement in order to
induce the Holders to maintain their investment in the Notes as consideration therefor.

     NOW, THEREFORE, the undersigned agrees, for the benefit of each Secured Party, as follows:

     SECTION 1. In accordance with Section 7.9 of the Pledge Agreement, the undersigned by
its signature below becomes a Pledgor under the Pledge Agreement with the same force and effect as
if it were an original signatory thereto as a Pledgor and hereby pledges, hypothecates, assigns,
charges, delivers and transfers to the Collateral Agent, for the benefit of the Secured Parties,
and grants to the Collateral Agent, for the benefit of the Secured Parties, as security for the
Secured Obligations, a continuing security interest in all of the undersigned’s right, title and
interest in and to the following, whether now owned or hereafter acquired by the undersigned
(collectively, the “Additional Collateral”):

     (a) all issued and outstanding Pledged Shares of each Pledged Share Issuer identified
in Attachment 1 hereto;

     (b) all other Capital Securities of any Pledged Share Issuer issued from time to time
to such Pledgor;

     (c) all Pledged Notes identified in Attachment 1 hereto and all other Pledged
Notes, whether now or hereafter delivered to the Collateral Agent in connection with this
Agreement;

     (d) all other Pledged Property, whether now or hereafter delivered to the Collateral
Agent in connection with this Agreement;

     (e) all Dividends, Distributions and other payments and rights with respect to any
Pledged Property; and

     (f) all proceeds of any of the foregoing.

     Notwithstanding the foregoing, the “Additional Collateral” shall not include the Capital
Securities of any Subsidiary of the Additional Pledgor that is a CFC or an Unrestricted Subsidiary.

     In furtherance of the foregoing, each reference to a “Pledgor” in the Pledge Agreement shall
be deemed to include the undersigned, each reference to “Collateral” in the Pledge

Annex I to Pledge Agreement — Page — 2

 

 

Agreement shall be deemed to include the Additional Collateral, and Attachment 1 hereto
shall be deemed to be part of Attachment 1 to the Pledge Agreement.

     SECTION 2. The undersigned hereby represents and warrants that (i) this Supplement has been
duly authorized, executed and delivered by the undersigned and constitutes a legal, valid and
binding obligation of the undersigned, enforceable against it in accordance with its terms, except
as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting creditors’ rights generally and general equitable principles, and (ii)
all representations and warranties set forth in Article III of the Pledge Agreement are
true and correct in all respects as to the undersigned and the Additional Collateral.

     SECTION 3. Except as expressly supplemented hereby, the Pledge Agreement shall remain in full
force and effect in accordance with its terms.

     SECTION 4. In the event any one or more of the provisions contained in this Supplement should
be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability
of the remaining provisions contained herein and in the Pledge Agreement shall not in any way be
affected or impaired.

     SECTION 5. Without limiting the provisions of the Indenture (or any other Indenture Document,
including the Pledge Agreement), the undersigned agrees to reimburse the Collateral Agent for its
reasonable out-of-pocket expenses in connection with this Supplement, including reasonable
attorneys’ fees and expenses of the Collateral Agent.

     SECTION 6. THIS SUPPLEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK.

     SECTION 7. This Supplement hereby incorporates by reference the provisions of the Pledge
Agreement, which provisions are deemed to be a part hereof, and this Supplement shall be deemed to
be a part of the Pledge Agreement.

     SECTION 8. This Supplement may be executed in several counterparts and by facsimile or other
electronic transmission, each of which counterparts shall be deemed to be an original (whether such
counterpart is originally executed or a facsimile or other electronic transmission copy of a
counterpart that is originally executed) and all of which shall constitute together but one and the
same agreement. This Supplement shall become effective and binding upon the Pledgor when a
counterpart hereof executed on behalf of the Pledgor shall have been received by the Collateral
Agent.

Annex I to Pledge Agreement — Page — 3

 

 

     IN WITNESS WHEREOF, the undersigned has caused this Supplement to be duly executed and
delivered by its officer thereunto duly authorized as of the date first above written.

	 	 	 	 	 	 	 
	 	 	 	 	[NAME OF ADDITIONAL PLEDGOR]
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 

	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 
	ACKNOWLEDGED AND ACCEPTED BY:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	U. S. BANK NATIONAL ASSOCIATION.,

as Collateral Agent
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

        Name:

	 	 	 	 	 	 
	        Title:
	 	 	 	 	 	 

Annex I to Pledge Agreement — Page — 4

 

 

ATTACHMENT 1

to Supplement No. __

Pledge Agreement

[NAME OF PLEDGOR]

	 	 	 	 	 	 	 
	Pledged Shares	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Pledged Share Issuer
	 	Capital Securities
	 
	 	 
	 	 
	 	 
	 
	 	Authorized Shares
	 	Outstanding Shares
	 	% of Shares Pledged
	 
	 	 
	 	 
	 	 

	 	 	 	 	 
	Pledged Notes	 	 	 	 
	 	 	 	 	 
	Maker
	 	Description
	 	Aggregate Principal Amount Outstanding
	 
	 	 
	 	 

Annex I to
Pledge Agreement — Page-5exv4w6

 

EXHIBIT 4.6

$150,000,000

STERLING CHEMICALS, INC.

101/4% Senior Secured Notes due 2015

REGISTRATION RIGHTS AGREEMENT

March 29, 2007

JEFFERIES & COMPANY, INC.

CIBC WORLD MARKETS CORP.

c/o Jefferies & Company, Inc.

520 Madison Avenue

New York, New York 10022

Ladies and Gentlemen:

     Sterling Chemicals, Inc, a Delaware corporation (the “Company”), is issuing and
selling to Jefferies & Company, Inc. and CIBC World Markets Corp. (each an “Initial
Purchaser” and collectively, the “Initial Purchasers”), upon the terms set forth in the
Purchase Agreement, dated March 26, 2007, by and among the Company, the Initial Purchasers and the
guarantor named therein (the “Purchase Agreement”), $150,000,000 aggregate principal amount
of 101/4% Senior Secured Notes due 2015 issued by the Company (each, together with the related
guarantee, a “Note” and collectively, the “Notes”). As an inducement to the
Initial Purchasers to enter into the Purchase Agreement, the Company and the Guarantors (as defined
below) agree with the Initial Purchasers, for the benefit of the Holders (as defined below) of the
Notes (including, without limitation, the Initial Purchasers), as follows:

 1. Definitions

     Capitalized terms that are used herein without definition and are defined in the Purchase
Agreement shall have the respective meanings ascribed to them in the Purchase Agreement. As used
in this Agreement, the following terms shall have the following meanings:

     Additional Interest: See Section 4(a).

     Advice: See Section 6(v).

     Agreement: This Registration Rights Agreement, dated as of the Closing Date, among the
Company, the Guarantors party hereto and the Initial Purchasers.

     Applicable Period: See Section 2(e).

     Blackout Period: See Section 3(e).

     Business Day: A day that is not a Saturday, a Sunday or a day on which banking institutions
in the City of New York are authorized or required by law or executive order to be closed.

 

 

     Closing Date: March 29, 2007.

     Company: See the introductory paragraph to this Agreement.

     Effectiveness Date: The 270th day after the Issue Date.

     Effectiveness Period: See Section 3(a).

     Event Date: See Section 4(b).

     Exchange Act: The Securities Exchange Act of 1934, as amended, and the rules and regulations
of the SEC promulgated thereunder.

     Exchange Notes: Senior Secured Notes due 2015 of the Company registered under the Securities
Act, identical in all material respects to the Notes, including the guarantee endorsed thereon,
except for restrictive legends and additional interest provisions.

     Exchange Offer: See Section 2(a).

     Exchange Offer Registration Statement: See Section 2(a).

     Filing Date: The 180th day after the Issue Date.

     Guarantors: Each subsidiary of the Company that guarantees the obligations of the Company
under the Notes and the Indenture.

     Holder: Any registered holder of Registrable Notes.

     Indemnified Party: See Section 8(c).

     Indemnifying Party: See Section 8(c).

     Indenture: The Indenture, dated as of the Closing Date, among the Company, the Guarantors and
U.S. Bank National Association, as trustee, pursuant to which the Notes are being issued, as
amended or supplemented from time to time in accordance with the terms hereof.

     Initial Purchasers: See the introductory paragraph to this Agreement.

     Initial Shelf Registration Statement: See Section 3(a).

     Inspectors: See Section 6(o).

     Issue Date: March 29, 2007.

     Lien: Has the meaning set forth in the Indenture.

     Losses: See Section 8(a).

     Maximum Contribution Amount: See Section 8(d).

     NASD: National Association of Securities Dealers, Inc.

2

 

     Notes: See the introductory paragraph to this Agreement.

     Participating Broker-Dealer: See Section 2(e).

     Person: An individual, trustee, corporation, partnership, limited liability company, joint
stock company, trust, unincorporated association, union, business association, firm, government or
agency or political subdivision thereof, or other legal entity.

     Private Exchange: See Section 2(f).

     Private Exchange Notes: See Section 2(f).

     Prospectus: The prospectus included in any Registration Statement (including, without
limitation, a prospectus that discloses 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 Notes covered by such 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.

     Purchase Agreement: See the introductory paragraph to this Agreement.

     Records: See Section 6(o).

     Registrable Notes: Notes, Private Exchange Notes and Exchange Notes received in the Exchange
Offer, in each case, that may not be sold or transferred (i) without restriction under federal or
state securities laws or (ii) pursuant to paragraph (k) of Rule 144.

     Registration Statement: Any registration statement of the Company and the Guarantors filed
with the SEC under the Securities Act (including, but not limited to, the Exchange Offer
Registration Statement, the Shelf Registration Statement and any Subsequent Shelf Registration
Statement) that covers any of the Registrable Notes pursuant to the provisions of this Agreement,
including the Prospectus, amendments and supplements to such registration statement, including
post-effective amendments, all exhibits and all material incorporated by reference or deemed to be
incorporated by reference in such registration statement.

     Rule 144: Rule 144 promulgated under the Securities Act, as such Rule may be amended from
time to time, or any similar rule (other than Rule 144A) or regulation hereafter adopted by the SEC
providing for offers and sales of securities made in compliance therewith resulting in offers and
sales by subsequent holders that are not affiliates of an issuer or such securities being free of
the registration and prospectus delivery requirements of the Securities Act.

     Rule 144A: Rule 144A promulgated under the Securities Act, as such Rule may be amended from
time to time, or any similar rule (other than Rule 144) or regulation hereafter adopted by the SEC.

     Rule 415: Rule 415 promulgated under the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the SEC.

     Rule 430A: Rule 430A promulgated under the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the SEC.

3

 

     SEC: The Securities and Exchange Commission.

     Securities: The Notes, the Exchange Notes and the Private Exchange Notes.

     Securities Act: The Securities Act of 1933, as amended, and the rules and regulations of the
SEC promulgated thereunder.

     Shelf Notice: See Section 2(i).

     Shelf Registration Statement: See Section 3(b).

     Subsequent Shelf Registration Statement: See Section 3(b).

     TIA: The Trust Indenture Act of 1939, as amended.

     Trustee: The trustee under the Indenture and, if existent, the trustee under any indenture
governing the Exchange Notes and Private Exchange Notes (if any).

2. Exchange Offer

	 	(a)	 	Unless the Exchange Offer would not be permitted by applicable laws or a policy
of the SEC, the Company shall (and shall cause each Guarantor to) (i) prepare and file
with the SEC promptly after the date hereof, but in no event later than the Filing
Date, a registration statement (the “Exchange Offer Registration Statement”) on
an appropriate registration form under the Securities Act with respect to an offer (the
“Exchange Offer”) to exchange the Notes for Exchange Notes guaranteed by the
Guarantors, which shall have terms substantially identical in all material respects to
the Notes, (ii) use its commercially reasonable efforts to cause the Exchange Offer
Registration Statement to become effective as promptly as practicable after the filing
thereof, but in no event later than the Effectiveness Date, (iii) use its commercially
reasonable efforts to keep the Exchange Offer Registration Statement effective until
the consummation of the Exchange Offer in accordance with its terms, and (iv) commence
the Exchange Offer and use its commercially reasonable efforts to issue on or prior to
50 days after the Effectiveness Date, Exchange Notes in exchange for all Notes tendered
prior thereto in the Exchange Offer. The Exchange Offer shall not be subject to any
conditions, other than that the Exchange Offer does not violate applicable law or any
applicable interpretation of the staff of the SEC.
	 
	 	(b)	 	The Exchange Notes and the Private Exchange Notes shall be issued under, and
entitled to the benefits of the Indenture or a trust indenture that is identical to the
Indenture (other than such changes as are necessary to comply with any requirements of
the SEC to effect or maintain the qualifications thereof under the TIA) which in either
case will provide that (i) the Exchange Notes will not be subject to the transfer
restrictions or additional interest provisions set forth in the Indenture, (ii) the
Private Exchange Notes will be subject to the transfer restrictions set forth in the
Indenture and (iii) the Exchange Notes, the Private Exchange Notes and the Notes, if
any, will be deemed one class of security (subject to the provisions of the Indenture)
and entitled to participate in all the security granted by the Company pursuant to the
Collateral Documents and in any Guarantee (as such terms are defined in the Indenture)
on an equal and ratable basis.

4

 

	 	(c)	 	Interest on the Exchange Notes and Private Exchange Notes will accrue from (i)
the later of (x) the last interest payment date on which interest was paid on the Notes
surrendered in exchange therefor or (y) if the Note is surrendered for exchange on a
date in a period which includes the record date for an interest payment date to occur
on or after the date of such exchange and as to which interest will be paid, the date
of such interest payment date or (ii) if no interest has been paid on the Notes, from
the Issue Date. Each Exchange Note and Private Exchange Note shall bear interest at
the rate set forth thereon; provided, that interest with respect to the period
prior to the issuance thereof shall accrue at the rate or rates borne by the Notes from
time to time during such period.
	 
	 	(d)	 	The Company may require each Holder as a condition to participation in the
Exchange Offer to represent to the Company that at the time of the consummation of the
Exchange Offer, (i) any Exchange Notes received by such Holder will be acquired in the
ordinary course of its business, (ii) at the time of 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 Notes in
violation of the provisions of the Securities Act, (iii) such Holder is not an
“affiliate” (as defined in Rule 405 of the Securities Act) of the Company or if such
Holder is an affiliate such Holder will comply with the registration and prospectus
delivery requirements of the Securities Act to the extent applicable, (iv) if such
Holder is not a broker-dealer, that it is not engaged in, and does not intend to engage
in, the distribution of the Exchange Notes and (v) if such Holder is a Participating
Broker-Dealer that will receive Exchange Notes for its own account in exchange for
Notes that were acquired as a result of market-making or other trading activities, that
it will deliver a Prospectus in connection with any resale of the Exchange Notes.
	 
	 	(e)	 	The Company shall (and shall cause each Guarantor to) include within the
Prospectus contained in the Exchange Offer Registration Statement a section entitled
“Plan of Distribution” reasonably acceptable to the Initial Purchasers which shall
contain all of the information that the SEC requires with respect to the potential
“underwriter” status of any broker-dealer that is the beneficial owner (as defined in
Rule 13d-3 under the Exchange Act) of Exchange Notes received by such broker-dealer in
the Exchange Offer for its own account in exchange for Notes that were acquired by it
as a result of market-making activities or other trading activities (a
“Participating Broker-Dealer”). Such “Plan of Distribution” section shall also
allow, to the extent permitted by applicable policies and regulations of the SEC, the
use of the Prospectus by all Persons subject to the prospectus delivery requirements of
the Securities Act, including, to the extent so permitted, all Participating
Broker-Dealers, and include a statement describing the manner in which Participating
Broker-Dealers may resell the Exchange Notes. The Company shall use its commercially
reasonable efforts to keep the Exchange Offer Registration Statement effective and to
amend and supplement the Prospectus contained therein, in order to permit such
Prospectus to be lawfully delivered by all Persons subject to the prospectus delivery
requirements of the Securities Act for such period of time as such Persons must comply
with such requirements in order to resell the Exchange Notes (the “Applicable
Period”).
	 
	 	(f)	 	If, upon consummation of the Exchange Offer, either Initial Purchaser holds any
Notes acquired by it and having the status of an unsold allotment in the initial
distribution, the Company (upon the written request from either Initial Purchaser)
shall, simultaneously with the delivery of the Exchange Notes pursuant to the Exchange
Offer, issue and deliver to such Initial Purchaser in exchange (the “Private
Exchange”) for the Notes held

5

 

	 	 	 	by such Initial Purchaser, a like principal amount at maturity of debt securities of
the Company, including guarantees endorsed thereon (issued under the same Indenture
as the Exchange Notes) that are identical in all material respects to the Exchange
Notes except for the existence of restrictions on transfer thereof under the
Securities Act and securities laws of the several states of the United States (the
“Private Exchange Notes”). The Private Exchange Notes shall bear the same
CUSIP number as the Exchange Notes.
	 
	 	(g)	 	In connection with the Exchange Offer, the Company shall (and shall cause each
Guarantor to):

	 	(i)	 	mail to each Holder a copy of the Prospectus forming part of
the Exchange Offer Registration Statement, together with an appropriate letter
of transmittal (substantially in the form attached as an exhibit to the
Exchange Offer Registration Statement) and any related documents;
	 
	 	(ii)	 	keep the Exchange Offer open for not less than 20 Business Days
(or longer if required by applicable law) after the date notice thereof is
mailed to the Holders;
	 
	 	(iii)	 	utilize the services of a depository for the Exchange Offer
with an address in the Borough of Manhattan, The City of New York, which may be
the Trustee or an affiliate thereof;
	 
	 	(iv)	 	permit Holders to withdraw tendered Registrable Notes at any
time prior to the close of business, New York time, on the last Business Day on
which the Exchange Offer shall remain open; and
	 
	 	(v)	 	otherwise comply with all applicable laws.

	 	(h)	 	As soon as practicable after the close of the Exchange Offer or the Private
Exchange, as the case may be, the Company shall (and shall cause each Guarantor to):

	 	(i)	 	accept for exchange all Registrable Notes validly tendered and
not withdrawn pursuant to the Exchange Offer or the Private Exchange, as the
case may be;
	 
	 	(ii)	 	deliver to the Trustee for cancellation all Registrable Notes
so accepted for exchange; and
	 
	 	(iii)	 	cause the Trustee to authenticate and deliver promptly to each
Holder tendering such Registrable Notes, Exchange Notes or Private Exchange
Notes, as the case may be, equal in principal amount at maturity to the Notes
of such Holder so accepted for exchange.

	 	(i)	 	If, (i) because of any change in law or in applicable interpretations thereof
by the staff of the SEC the Company is not permitted to effect an Exchange Offer, (ii)
for any other reason the Exchange Offer Registration Statement is not declared
effective on or prior to the Effectiveness Date, or the Exchange Offer is not
consummated within 50 days after the Effectiveness Date, (iii) either Initial Purchaser
so requests with respect to the Notes (or the Private Exchange Notes) not eligible to
be exchanged for Exchange Notes in the Exchange Offer and held by it following
consummation of the Exchange Offer, or (iv) in the case of (A) any Holder not permitted
to participate in the Exchange Offer, (B) any Holder participating in the Exchange
Offer that does not receive Exchange Notes on the

6

 

	 	 	 	date of the exchange that may be sold without restriction under state and federal
securities laws (other than due solely to the status of such Holder as an affiliate
of the Company within the meaning of the Securities Act) or (C) any Participating
Broker Dealer holds Notes acquired directly from the Company or one of its
affiliates, then in each case the Company shall promptly deliver to the Holders and
the Trustee written notice thereof (the “Shelf Notice”) and shall as
promptly as practicable and at its sole expense file an Initial Shelf Registration
Statement pursuant to Section 3.

3. Shelf Registration

     If a Shelf Notice is delivered pursuant to Section 2(i), then this Section 3
shall apply to all Registrable Notes. Otherwise, upon consummation of the Exchange Offer in
accordance with Section 2, the provisions of this Section 3 shall apply solely with
respect to (i) Notes held by any Holder thereof not permitted to participate in the Exchange Offer,
(ii) Private Exchange Notes, and (iii) Exchange Notes that are not freely transferable as
contemplated by Section 2(i)(iv) hereof, provided in each case that the relevant
Holder has duly notified the Company within six months of the Exchange Offer as required by
Section 2(i)(iv).

	 	(a)	 	Initial Shelf Registration. The Company shall (and shall cause each
Guarantor to), use its commercially reasonable efforts to, as promptly as practicable
file with the SEC a Registration Statement for an offering to be made on a continuous
basis pursuant to Rule 415 covering all of the Registrable Notes (the “Initial
Shelf Registration Statement”) within 30 days after the delivery of the Shelf
Notice and shall (and shall cause each Guarantor to) use its commercially reasonable
efforts to cause such Initial Shelf Registration Statement to be declared effective
under the Securities Act as promptly as practicable thereafter (but in no event more
than 90 days after delivery of the Shelf Notice); provided, however,
that if the Company (and each Guarantor) has not yet filed an Exchange Offer
Registration Statement, the Company shall use its commercially reasonable efforts to
file (and shall cause each Guarantor to file) with the SEC the Initial Shelf
Registration Statement on or prior to the Filing Date and shall use its commercially
reasonable efforts to cause such Initial Shelf Registration Statement to be declared
effective under the Securities Act on or prior to the Effectiveness Date. The Initial
Shelf Registration Statement shall be on Form S-1 or another appropriate form
permitting registration of such Registrable Notes for resale by Holders in the manner
or manners reasonably designated by them (including, without limitation, one or more
underwritten offerings). The Company and Guarantors shall not permit any securities
other than the Registrable Notes to be included in any Shelf Registration Statement.
The Company shall (and shall cause each Guarantor to) use its commercially reasonable
efforts to keep the Initial Shelf Registration Statement continuously effective under
the Securities Act until the earliest of (i) two years from the Closing Date (the
“Effectiveness Period”), (ii) the time the Securities covered by the Initial
Shelf Registration can be sold pursuant to Rule 144 without any limitations under
clauses (c), (e), (f) and (h) of Rule 144, (iii) the date on which all Registrable
Notes covered by the Initial Shelf Registration Statement have been sold in the manner
set forth and as contemplated in the Initial Shelf Registration Statement, (iv) the
date on which a Subsequent Shelf Registration Statement (as defined below) covering all
of the Registrable Notes covered by and not sold under the Initial Shelf Registration
Statement or an earlier Subsequent Shelf Registration Statement has been declared
effective under the Securities Act or (v) the date on which there cease to be any
outstanding Registrable Notes. The Company shall notify each Holder when the Initial
Shelf Registration Statement has been declared effective.

7

 

	 	(b)	 	Subsequent Shelf Registrations. If the Initial Shelf Registration
Statement or any Subsequent Shelf Registration Statement ceases to be effective for any
reason at any time during the Effectiveness Period (other than because of the sale of
all of the securities registered thereunder), the Company shall (and shall cause each
Guarantor to) use its commercially reasonable efforts to obtain the prompt withdrawal
of any order suspending the effectiveness thereof, and in any event shall within 30
days of such cessation of effectiveness amend such Shelf Registration Statement in a
manner designed to obtain the withdrawal of the order suspending the effectiveness
thereof, or file (and cause each Guarantor to file) an additional shelf registration
statement pursuant to Rule 415 under the Securities Act covering all of the Registrable
Notes covered by and not sold under the Initial Registration Statement or any earlier
Registration Statement (a “Subsequent Shelf Registration Statement”). If a
Subsequent Shelf Registration Statement is filed, the Company shall (and shall cause
each Guarantor to) use its commercially reasonable efforts to cause the Subsequent
Shelf Registration Statement to be declared effective as soon as practicable after such
filing and to keep such Subsequent Shelf Registration Statement continuously effective
for a period equal to the number of days in the Effectiveness Period less the aggregate
number of days during which the Initial Shelf Registration Statement or any Subsequent
Shelf Registration Statement was previously continuously effective. As used herein the
term “Shelf Registration Statement” means the Initial Shelf Registration
Statement and any Subsequent Shelf Registration Statements.
	 
	 	(c)	 	Supplements and Amendments. The Company shall promptly amend any Shelf
Registration Statement and/or amend or supplement the Prospectus constituting a part
thereof if required by the rules, regulations or instructions applicable to the
registration form used for such Shelf Registration Statement, if required by the
Securities Act, or if reasonably requested in writing by the Holders of a majority in
aggregate principal amount of the Registrable Notes covered by such Shelf Registration
Statement or by any underwriter of such Registrable Notes.
	 
	 	(d)	 	Provision of Information. No Holder shall be entitled to include any
of its Registrable Notes in any Shelf Registration Statement pursuant to this Agreement
unless such Holder furnishes to the Company and the Trustee in writing, within 20 days
after receipt of a written request therefor, such information as the Company and the
Trustee, after conferring with counsel with regard to information relating to Holders
that would be required by the SEC to be included in such Shelf Registration Statement
or Prospectus included therein, may reasonably request for inclusion in any Shelf
Registration Statement or Prospectus included therein, and no such Holder shall be
entitled to Additional Interest pursuant to Section 4 hereof unless and until
such Holder shall have provided such information.
	 
	 	(e)	 	Blackout Periods. Notwithstanding anything to the contrary contained
in this Agreement, upon notice to Holders, the Company may suspend use of the
Prospectus included in any Shelf Registration Statement in the event that and for a
period of time (a “Blackout Period”) not to exceed an aggregate of 90 days in
any 12-month period if the board of directors of the Company determines in good faith
that (1) the disclosure of an event, occurrence or other item at such time could
reasonably be expected to have a material adverse effect on the business, operations or
prospects of the Company and the Guarantors, taken as a whole, (2) the disclosure
otherwise relates to a material business transaction which has not been publicly
disclosed and that any such disclosure would jeopardize the success of the transaction
or that disclosure of the transaction is prohibited

8

 

	 	 	 	pursuant to the terms thereof or (3) changes in the Registration Statement or
related prospectus are required so that, as of such date, such Registration
Statement or prospectus does not include an untrue statement of material fact or
omit to state a material fact necessary to make the statements therein (in the case
of the prospectus, in the light of the circumstances under which they were made) not
misleading.

4. Additional Interest

	 	(a)	 	The Company and each Guarantor acknowledges and agrees that the Holders of
Registrable Notes will suffer damages if the Company or any Guarantor fails to fulfill
its material obligations under Section 2 or Section 3 hereof and that
it would not be feasible to ascertain the extent of such damages with precision.
Accordingly, the Company and the Guarantors agree to pay additional cash interest on
the Notes (“Additional Interest”) under the circumstances and to the extent set
forth below (each of which shall be given independent effect):

	 	(i)	 	if (A) neither the Exchange Offer Registration Statement nor
the Initial Shelf Registration Statement has been filed with the SEC on or
prior to the Filing Date or (B) notwithstanding that the Company has
consummated or will consummate an Exchange Offer, the Company is required to
file a Shelf Registration Statement and such Shelf Registration Statement is
not filed on or prior to the date required by this Agreement, then, commencing
on the day after either such required filing date, Additional Interest shall
accrue on the principal amount of the Notes that have not been exchanged for
Exchange Notes over and above any stated interest at a rate of 0.25% per annum
for the first 90 days immediately following such filing date, such Additional
Interest rate increasing by an additional 0.25% per annum at the beginning of
each subsequent 90-day period, subject to the provisos in the last sentence of
this paragraph;
	 
	 	(ii)	 	if (A) neither the Exchange Offer Registration Statement nor
the Initial Shelf Registration Statement is declared effective by the SEC on or
prior to the Effectiveness Date, (B) notwithstanding that the Company has
consummated or will consummate an Exchange Offer, the Company is required to
file a Shelf Registration Statement and such Shelf Registration Statement is
not declared effective by the SEC on or prior to the 90th day
following the date such Shelf Registration Statement was filed, then,
commencing on the day after either such required effective date, Additional
Interest shall accrue on the principal amount of the Notes over and above any
stated interest at a rate of 0.25% per annum for the first 90 days immediately
following such effective date, such Additional Interest rate increasing by an
additional 0.25% per annum at the beginning of each subsequent 90-day period,
subject to the provisos in the last sentence of this paragraph; or
	 
	 	(iii)	 	if (A) the Company (and any Guarantor) has not exchanged
Exchange Notes for all Notes validly tendered and not withdrawn in accordance
with the terms of the Exchange Offer on or prior to the date that is 50 days
after the Effectiveness Date, (B) if applicable, a Shelf Registration Statement
has been declared effective and such Shelf Registration Statement ceases to be
effective or usable in connection with resales of the Notes in accordance with
and during the periods specified in this Agreement, as applicable, at any time
during the Effectiveness Period (other than during a Blackout Period or after
such time as all Notes have

9

 

	 	 	 	been disposed of thereunder), or (C) the Company issues a valid notice to
suspend the use of the Prospectus included in any Shelf Registration
Statement and such suspension, when taken together with all other
suspensions, if any (but solely to the extent not concurrent), during any
12-month period exceeds 90 days, then, in each case, Additional Interest
shall accrue on the principal amount of the Notes over and above any stated
interest at a rate of 0.25% per annum for the first 90 days commencing on
(x) the 51st day after the Effectiveness Date, in the case of clause (A)
above, (y) the day such Shelf Registration Statement ceases to be effective
or useable, in the case of clause (B) above, or (z) the day the Prospectus
in any Shelf Registration Statement is suspended for any period in excess of
90 days during any 12-month period, in the case of clause (C) above, such
Additional Interest rate increasing by an additional 0.25% per annum at the
beginning of each subsequent 90-day period, subject to the provisos in the
last sentence of this paragraph;

	 	 	 	provided, however, that Additional Interest will not accrue under
more than one of the foregoing clauses (i), (ii) or (iii) at any one time;
provided further, however, that the amount of Additional
Interest accruing on the Notes shall not exceed 1.0% per annum; and provided
further, however, that (1) upon the filing of the Exchange Offer
Registration Statement or Initial Shelf Registration Statement (in the case of
clause (i) above), (2) upon the effectiveness of the Exchange Offer Registration
Statement or Shelf Registration Statement (in the case of clause (ii) above), (3)
upon the exchange of Exchange Notes for all Notes tendered (in the case of clause
(iii)(A) above), (4) upon the effectiveness of a Shelf Registration Statement which
had ceased to remain effective (in the case of clause (iii)(B) above), or (5) upon
the day the Prospectus in any Shelf Registration Statement the use of which was
previously suspended may be used again (in the case of clause (iii)(C) above),
Additional Interest on the Notes as a result of such clause (or the relevant
subclause thereof), as the case may be, shall cease to accrue.
	 
	 	(b)	 	The Company shall notify the Trustee within five Business Days after each and
every date on which an event occurs in respect of which Additional Interest is required
to be paid (an “Event Date”). Any amounts of Additional Interest due pursuant
to clause (a)(i), (a)(ii) or (a)(iii) of this Section 4
will be payable in cash, on the dates and in the manner provided in the Indenture and
whether or not any cash interest would then be payable on such date, commencing with
the first such semi-annual date occurring after any such Additional Interest commences
to accrue. The amount of Additional Interest will be determined by multiplying the
applicable Additional Interest rate by the principal amount of the Notes, multiplied by
a fraction, the numerator of which is the number of days such Additional Interest rate
was applicable during such period (determined on the basis of a 360-day year comprised
of twelve 30-day months and, in the case of a partial month, the actual number of days
elapsed), and the denominator of which is 360.

5. Intentionally Omitted

6. Registration Procedures

     In connection with the filing of any Registration Statement pursuant to Sections 2 or 3
hereof, the Company shall (and shall cause each Guarantor to) effect such registrations to permit
the sale of such securities covered thereby in accordance with the intended method or methods of
disposition thereof, and pursuant thereto and in connection with any Registration Statement filed
by the Company hereunder, the Company shall (and shall cause each Guarantor to):

10

 

	 	(a)	 	Prepare and file with the SEC as soon as practicable after the date hereof but
in any event on or prior to the Filing Date, the Exchange Offer Registration Statement
or if the Exchange Offer Registration Statement is not filed because of the
circumstances contemplated by Section 2(i), a Shelf Registration Statement as
prescribed by Section 3, and use its commercially reasonable efforts to cause each such
Registration Statement to become effective and remain effective as provided herein;
provided that, if (1) a Shelf Registration Statement is filed pursuant to
Section 3 or (2) a Prospectus contained in an Exchange Offer Registration Statement
filed pursuant to Section 2 is required to be delivered under the Securities Act by any
Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable
Period, before filing any Registration Statement or Prospectus or any amendments or
supplements thereto the Company shall (and shall cause each Guarantor to), if
requested, furnish at no charge to the Holders of the Registrable Notes to be
registered pursuant to such Shelf Registration Statement, each Participating
Broker-Dealer, the managing underwriters, if any, and each of their respective counsel,
a reasonable opportunity to review copies of all such documents (including copies of
any documents to be incorporated by reference therein and all exhibits thereto)
proposed to be filed (in each case at least five Business Days prior to such filing).
The Company and each Guarantor shall not file (and shall not allow any of the other
Guarantors to) any such Registration Statement or Prospectus or any amendments or
supplements thereto in respect of which the Holders must provide information for the
inclusion therein without the Holders being afforded an opportunity to review such
documentation if the holders of a majority in aggregate principal amount of the
Registrable Notes covered by such Registration Statement, or any such Participating
Broker-Dealer, as the case may be, or the managing underwriters, if any, or any of
their respective counsel shall reasonably object in writing on a timely basis. A
Holder shall be deemed to have reasonably objected to such filing if such Registration
Statement, amendment, Prospectus or supplement, as applicable, as proposed to be filed,
contains an untrue statement of a material fact or omits to state any material fact
necessary to make the statements therein not misleading or fails to comply with the
applicable requirements of the Securities Act.
	 
	 	(b)	 	Provide an indenture trustee for the Registrable Notes, the Exchange Notes or
the Private Exchange Notes, as the case may be, and cause the Indenture (or other
indenture relating to the Registrable Notes) to be qualified under the TIA not later
than the effective date of the first Registration Statement; and in connection
therewith, to effect such changes to such indenture as may be required for such
indenture to be so qualified in accordance with the terms of the TIA; and execute, and
use its commercially reasonable efforts to cause such trustee to execute, all documents
as may be required to effect such changes, and all other forms and documents required
to be filed with the SEC to enable such indenture to be so qualified in a timely
manner.
	 
	 	(c)	 	Prepare and file with the SEC such pre-effective amendments and post-effective
amendments to each Shelf Registration Statement or Exchange Offer Registration
Statement, as the case may be, as may be necessary to keep such Registration Statement
continuously effective for the Effectiveness Period or the Applicable Period, as the
case may be; cause the related Prospectus to be supplemented by any Prospectus
supplement required by applicable law, and as so supplemented to be filed pursuant to
Rule 424 (or any similar provisions then in force) promulgated under the Securities
Act; and comply with the provisions of the Securities Act and the Exchange Act
applicable to them with respect to the disposition of all securities covered by such
Registration Statement as so amended or in such Prospectus as so supplemented and with
respect to the subsequent

11

 

	 	 	 	resale of any securities being sold by a Participating Broker-Dealer covered by any
such Prospectus. The Company and each Guarantor shall not (and shall not allow any
other Guarantor to), during the Applicable Period, voluntarily take any action that
would reasonably be expected to result in selling Holders of the Registrable Notes
covered by a Registration Statement or Participating Broker-Dealers seeking to sell
Exchange Notes not being able to sell such Registrable Notes or such Exchange Notes
during that period, unless such action is required by applicable law, rule or
regulation or permitted by this Agreement.
	 
	 	(d)	 	Furnish to such selling Holders and Participating Broker-Dealers who so request
in writing (i) upon the Company’s receipt, a copy of the order of the SEC declaring
such Registration Statement and any post effective amendment thereto effective, (ii)
such reasonable number of copies of such Registration Statement and of each amendment
and supplement thereto (in each case including any documents incorporated therein by
reference and all exhibits), (iii) such reasonable number of copies of the Prospectus
included in such Registration Statement (including each preliminary Prospectus) and
each amendment and supplement thereto, and such reasonable number of copies of the
final Prospectus as filed by the Company and each Guarantor pursuant to Rule 424(b)
under the Securities Act, in conformity with the requirements of the Securities Act and
each amendment and supplement thereto, and (iv) such other documents (including any
amendments required to be filed pursuant to clause (c) of this Section 6), as any such
Person may reasonably request in writing. The Company and the Guarantors hereby
consent to the use of the Prospectus by each of the selling Holders of Registrable
Notes or each such Participating Broker-Dealer, as the case may be, and the
underwriters or agents, if any, and dealers, if any, in connection with the offering
and sale of the Registrable Notes covered by, or the sale by Participating
Broker-Dealers of the Exchange Notes pursuant to, such Prospectus and any amendment or
supplement thereto.
	 
	 	(e)	 	If (1) a Shelf Registration Statement is filed pursuant to Section 3, or (2) a
Prospectus contained in an Exchange Offer Registration Statement filed pursuant to
Section 2 is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period relating
thereto, the Company shall notify in writing the selling Holders of Registrable Notes,
or each such Participating Broker-Dealer, as the case may be, and the managing
underwriters, if any, and each of their respective counsel promptly (but in any event
within five Business Days) (i) when a Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to a Registration Statement
or any post-effective amendment, when the same has become effective (including in such
notice a written statement that any Holder may, upon request, obtain, without charge,
one conformed copy of such Registration Statement or post-effective amendment including
financial statements and schedules, documents incorporated or deemed to be incorporated
by reference and exhibits), (ii) of the issuance by the SEC of any stop order
suspending the effectiveness of a Registration Statement or of any order preventing or
suspending the use of any Prospectus or the initiation of any proceedings for that
purpose, (iii) if at any time when a Prospectus is required by the Securities Act to be
delivered in connection with sales of the Registrable Notes the representations and
warranties of the Company and any Guarantor contained in any agreement (including any
underwriting agreement contemplated by Section 6(n) hereof) cease to be true and
correct, (iv) of the receipt by the Company or any Guarantor of any notification with
respect to the suspension of the qualification or exemption from qualification of a
Registration Statement or any of the Registrable Notes or the Exchange Notes to be sold
by any Participating Broker-Dealer for offer or sale in any jurisdiction,

12

 

	 	 	 	or the initiation or threatening of any proceeding for such purpose, (v) of the
happening of any event, the existence of any condition of any information becoming
known that makes any statement made in such Registration Statement or related
Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires the making of any changes
in, or amendments or supplements to, such Registration Statement, Prospectus or
documents so that, in the case of the Registration Statement and the Prospectus, 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,
(vi) of any reasonable determination by the Company or any Guarantor that a
post-effective amendment to a Registration Statement would be appropriate and (vii)
of any request by the SEC for amendments to the Registration Statement or
supplements to the Prospectus or for additional information relating thereto.
	 
	 	(f)	 	Use its commercially reasonable efforts to prevent the issuance of any order
suspending the effectiveness of a Registration Statement or of any order preventing or
suspending the use of a Prospectus or suspending the qualification (or exemption from
qualification) of any of the Registrable Notes or the Exchange Notes to be sold by any
Participating Broker-Dealer, for sale in any jurisdiction, and, if any such order is
issued, to use its commercially reasonable efforts to obtain the withdrawal of any such
order at the earliest possible date.
	 
	 	(g)	 	If (A) a Shelf Registration Statement is filed pursuant to Section 3, (B) a
Prospectus contained in an Exchange Offer Registration Statement filed pursuant to
Section 2 is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period or (C)
reasonably requested in writing by the managing underwriters, if any, or the Holders of
a majority in aggregate principal amount of the Registrable Notes being sold in
connection with an underwritten offering, (i) promptly incorporate in a Prospectus
supplement or post-effective amendment such information or revisions to information
therein relating to such underwriters or selling Holders as the managing underwriters,
if any, or such Holders or any of their respective counsel reasonably request in
writing to be included or made therein and (ii) make all required filings of such
Prospectus supplement or such post-effective amendment as soon as practicable after the
Company has received notification of the matters to be incorporated in such Prospectus
supplements or post-effective amendment.
	 
	 	(h)	 	Prior to any public offering of Registrable Notes or any delivery of a
Prospectus contained in the Exchange Offer Registration Statement by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, use its
commercially reasonable efforts to register or qualify, and cooperate with the selling
Holders of Registrable Notes or each such Participating Broker-Dealer, as the case may
be, the underwriters, if any, and their respective counsel in connection with the
registration or qualification (or exemption from such registration or qualification) of
such Registrable Notes or Exchange Notes, as the case may be, for offer and sale under
the securities or Blue Sky laws of such jurisdictions within the United States as any
selling Holder, Participating Broker-Dealer or any managing underwriter or
underwriters, if any, reasonably request in writing; and, if Exchange Notes held by
Participating Broker-Dealers or Registrable Notes are offered other than through an
underwritten offering, the Company and each Guarantor shall cause its counsel to
perform Blue Sky investigations and use its commercially reasonable efforts to file any
registrations and qualifications

13

 

	 	 	 	required to be filed pursuant to this Section 6(h), use its commercially reasonable
efforts to keep each such registration or qualification (or exemption therefrom)
effective during the period such Registration Statement is required to be kept
effective and use its commercially reasonable efforts to do any and all other acts
or things reasonably necessary or advisable to enable the disposition in such
jurisdictions of the Exchange Notes held by Participating Broker-Dealers or the
Registrable Notes covered by the applicable Registration Statement; provided
that neither the Company nor any Guarantor shall be required to (A) qualify
generally to do business in any jurisdiction where it is not then so qualified, (B)
take any action that would subject it to general service of process in any such
jurisdiction where it is not then so subject or (C) subject itself to taxation in
any such jurisdiction where it is not then so subject.
	 
	 	(i)	 	If (A) a Shelf Registration Statement is filed pursuant to Section 3 or (B) a
Prospectus contained in an Exchange Offer Registration Statement filed pursuant to
Section 2 is requested to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, cooperate
with the selling Holders of Registrable Notes and the managing underwriter or
underwriters, if any, to facilitate the timely preparation and delivery of certificates
representing Registrable Notes to be sold, which certificates shall not bear any
restrictive legends and shall be in a form eligible for deposit with The Depository
Trust Company, and enable such Registrable Notes to be in such denominations and
registered in such names as the managing underwriter or underwriters, if any, or
Holders may reasonably request in writing.
	 
	 	(j)	 	Use its commercially reasonable efforts to cause the Registrable Notes covered
by any Registration Statement to be registered with or approved by such United States
governmental agencies or authorities as may be necessary to enable the seller or
sellers thereof or the underwriter, if any, to consummate the disposition of such
Registrable Notes, except as may be required solely as a consequence of the nature of
such selling Holder’s business, in which case the Company shall (and shall cause each
Guarantor to) cooperate in all reasonable respects with the filing of such Registration
Statement and the granting of such approvals; provided that neither the Company
nor any Guarantor shall be required to (A) qualify generally to do business in any
jurisdiction where it is not then so qualified, (B) take any action that would subject
it to general service of process in any jurisdiction where it is not then so subject or
(C) subject itself to taxation in any such jurisdiction where it is not then so
subject.
	 
	 	(k)	 	If (1) a Shelf Registration Statement is filed pursuant to Section 3, or (2) a
Prospectus contained in an Exchange Offer Registration Statement filed pursuant to
Section 2 is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, upon the
occurrence of any event contemplated by Section 6(e)(v) or 6(e)(vi) hereof, as promptly
as practicable, prepare and file with the SEC, at the expense of the Company and the
Guarantors, a supplement or 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, or file any other required document so that, as
thereafter delivered to the purchasers of the Registrable Notes being sold thereunder
or to the purchasers of the Exchange Notes to whom such Prospectus will be delivered by
a Participating Broker-Dealer, such Prospectus 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, in light of the circumstances under which
they were made, not misleading, and, if

14

 

	 	 	 	SEC review is required, use its commercially reasonable efforts to cause such
post-effective amendment to be declared effective as soon as possible.
	 
	 	(l)	 	Use its commercially reasonable efforts to cause the Registrable Notes covered
by a Registration Statement to be rated with such appropriate rating agencies, if so
requested in writing by the Holders of a majority in aggregate principal amount of the
Registrable Notes covered by such Registration Statement or the managing underwriter or
underwriters, if any.
	 
	 	(m)	 	Prior to the initial issuance of the Exchange Notes, (i) provide the Trustee
with one or more certificates for the Registrable Notes in a form eligible for deposit
with The Depository Trust Company and (ii) provide a CUSIP number for the Exchange
Notes.
	 
	 	(n)	 	If a Shelf Registration Statement is filed pursuant to Section 3, enter into
such agreements (including an underwriting agreement in form, scope and substance as is
customary in underwritten offerings of debt securities similar to the Notes, as may be
appropriate in the circumstances) and take all such other actions in connection
therewith (including those reasonably requested in writing by the managing
underwriters, if any, or the Holders of a majority in aggregate principal amount of the
Registrable Notes being sold) as is customary in underwritten offerings of debt
securities similar to the Notes as may be appropriate in connection therewith in order
to expedite or facilitate the registration or the disposition of such Registrable
Notes, and in such connection, whether or not an underwriting agreement is entered into
and whether or not the registration is an underwritten registration (except as set
forth below), (i) make such representations and warranties to the Holders and the
underwriters, if any, with respect to the business of the Company and its subsidiaries
as then conducted, and the Registration Statement, Prospectus and documents, if any,
incorporated or deemed to be incorporated by reference therein, in each case, in form,
substance and scope as are customarily made by issuers to underwriters in underwritten
offerings of debt securities similar to the Notes, as may be appropriate in the
circumstances, and confirm the same if and when reasonably required; (ii) use
commercially reasonable efforts to obtain an opinion of counsel to the Company and the
Guarantors and updates thereof (which counsel and opinions (in form, scope and
substance) shall be reasonably satisfactory to the managing underwriters, if any, and
the Holders of a majority in aggregate principal amount of the Registrable Notes being
sold), addressed to each selling Holder and each of the underwriters, if any, covering
the matters customarily covered in opinions of counsel to the Company and the
Guarantors requested in underwritten offerings of debt securities similar to the Notes,
as may be appropriate in the circumstances; (iii) use commercially reasonable efforts
to obtain “cold comfort” letters and updates thereof (which letters and updates (in
form, scope and substance) shall be reasonably satisfactory to the managing
underwriters) from the independent certified public accountants of the Company and the
Guarantors (and, if necessary, any other independent certified public accountants of
any subsidiary of the Company or of any business acquired by the Company for which
financial statements and financial data are, or are required to be, included in the
Registration Statement), addressed to each of the underwriters, such letters to be in
customary form and covering matters of the type customarily covered in “cold comfort”
letters in connection with underwritten offerings of debt securities similar to the
Notes, as may be appropriate in the circumstances, and such other matters as reasonably
requested in writing by the underwriters; and (iv) deliver such documents and
certificates as may be reasonably requested in writing by the Holders of a majority in
aggregate principal amount of the Registrable Notes being sold and the managing
underwriters, if any, to evidence the

15

 

	 	 	 	continued validity of the representations and warranties of the Company and its
subsidiaries made pursuant to clause (i) above and to evidence compliance with any
conditions contained in the underwriting agreement or other similar agreement
entered into by the Company or any Guarantor.
	 
	 	(o)	 	If (1) a Shelf Registration Statement is filed pursuant to Section 3, or (2) a
Prospectus contained in an Exchange Offer Registration Statement filed pursuant to
Section 2 is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, make
available for inspection by a representative of the Holder of such Registrable Notes
being sold, and representative of each such Participating Broker-Dealer, as the case
may be, any underwriter participating in any such disposition of Registrable Notes, if
any, and any attorney, accountant or other agent retained by any such selling Holder or
each such Participating Broker-Dealer, as the case may be, or underwriter
(collectively, the “Inspectors”), at the offices where normally kept, with
reasonable advance notice and during reasonable business hours, all financial and other
records and pertinent corporate documents of the Company and its subsidiaries
(collectively, the “Records”) as shall be reasonably necessary to enable them
to exercise any applicable due diligence responsibilities, and cause the officers,
directors and employees of the Company and its subsidiaries to supply all information
reasonably requested in writing by any such Inspector in connection with such
Registration Statement. Each Inspector shall agree in writing that it will keep the
Records confidential and not disclose any of the Records unless (i) the disclosure of
such Records is necessary to avoid or correct a misstatement or omission in such
Registration Statement, (ii) the release of such Records is ordered pursuant to a
subpoena or other order from a court of competent jurisdiction, (iii) the information
in such Records is public or has been made generally available to the public other than
as a result of a disclosure or failure to safeguard by such Inspector or (iv)
disclosure of such information is, in the reasonable written opinion of counsel for any
Inspector, necessary or advisable in connection with any action, claim, suit or
proceeding, directly or indirectly, involving or potentially involving such Inspector
and arising out of, based upon, related to, or involving this Agreement, or any
transaction contemplated hereby or arising hereunder. Each selling Holder of such
Registrable Notes and each such Participating Broker-Dealer will be required to agree
that information obtained by it as a result of such inspections shall be deemed
confidential and shall not be used by it as the basis for any market transactions in
the securities of the Company unless and until such information is made generally
available to the public. Each Inspector, each selling Holder of such Registrable Notes
and each such Participating Broker-Dealer will be required to further agree that it
will, upon learning that disclosure of such Records is sought in a court of competent
jurisdiction, give reasonable advance notice to the Company and, to the extent
practicable, use its commercially reasonable efforts to allow the Company, at its
expense, to undertake appropriate action to prevent disclosure of the Records deemed
confidential at its expense.
	 
	 	(p)	 	Comply with all applicable rules and regulations of the SEC and make generally
available to the security holders of the Company with regard to any applicable
Registration Statement earning statements satisfying the provisions of section 11(a) of
the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the
Securities Act).
	 
	 	(q)	 	Upon consummation of an Exchange Offer or Private Exchange, use its
commercially reasonable efforts to obtain an opinion of counsel to the Company and the
Guarantors (in

16

 

	 	 	 	form, scope and substance reasonably satisfactory to each Initial Purchaser),
addressed to the Trustee for the benefit of all Holders participating in the
Exchange Offer or Private Exchange, as the case may be, to the effect that (i) the
Company and the Guarantors have duly authorized, executed and delivered the Exchange
Notes or the Private Exchange Notes, as the case may be, and the Indenture, (ii) the
Exchange Notes or the Private Exchange Notes, as the case may be, and the Indenture
constitute legal, valid and binding obligations of the Company and the Guarantors,
enforceable against the Company and the Guarantors in accordance with their
respective terms, except as such enforcement may be subject to customary United
States and foreign exceptions and (iii) all obligations of the Company and the
Guarantors under the Exchange Notes or the Private Exchange Notes, as the case may
be, and the Indenture are secured by Liens (as defined in the Indenture) on the
assets securing the obligations of the Company and the Guarantors under the Notes,
the Indenture and the Collateral Agreements to the extent and as discussed in the
Registration Statement, in each case, subject to customary assumptions, limitations,
reliances and qualifications.
	 
	 	(r)	 	If the Exchange Offer or a Private Exchange is to be consummated, upon delivery
of the Registrable Notes by the Holders to the Company and the Guarantors (or to such
other Person as directed by the Company and the Guarantors) in exchange for the
Exchange Notes or the Private Exchange Notes, as the case may be, the Company and the
Guarantors shall mark, or cause to be marked, on such Registrable Notes that the
Exchange Notes or the Private Exchange Notes, as the case may be, are being issued as
substitute evidence of the indebtedness originally evidenced by the Registrable Notes;
provided that in no event shall such Registrable Notes be marked as paid or
otherwise satisfied.
	 
	 	(s)	 	Cooperate with each seller of Registrable Notes covered by any Registration
Statement and each underwriter, if any, participating in the disposition of such
Registrable Notes and their respective counsel in connection with any filings required
to be made with the NASD.
	 
	 	(t)	 	Use its commercially reasonable efforts to take all other steps reasonably
necessary to effect the registration of the Registrable Notes covered by a Registration
Statement contemplated hereby.
	 
	 	(u)	 	The Company may require each seller of Registrable Notes or Participating
Broker-Dealer as to which any registration is being effected to furnish to the Company
such information regarding such seller or Participating Broker-Dealer and the
distribution of such Registrable Notes as the Company may, from time to time,
reasonably request in writing. The Company may exclude from such registration the
Registrable Notes of any seller who fails to furnish such information within a
reasonable time (which time in no event shall exceed 45 days) after receiving such
request. Each seller of Registrable Notes or Participating Broker-Dealer as to which
any registration is being effected agrees to furnish promptly to the Company all
information required to be disclosed in order to make the information previously
furnished by such seller not materially misleading.

     Each Holder of Registrable Notes and each Participating Broker-Dealer agrees by acquisition of
such Registrable Notes or Exchange Notes to be sold by such Participating Broker-Dealer, as the
case may be, that, upon receipt of any notice from the Company of the happening of any event of the
kind described in Section 6(e)(ii), 6(e)(iv), 6(e)(v), or 6(e)(vi), such Holder will forthwith
discontinue disposition of such Registrable Notes covered by a Registration Statement and such
Participating Broker-

17

 

Dealer will forthwith discontinue disposition of such Exchange Notes pursuant to any
Prospectus and, in each case, forthwith discontinue dissemination of such Prospectus until such
Holder’s or Participating Broker-Dealer’s receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 6(k), or until it is advised in writing (the “Advice”)
by the Company and the Guarantors that the use of the applicable Prospectus may be resumed, and has
received copies of any amendments or supplements thereto and, if so directed by the Company and the
Guarantors, such Holder or Participating Broker-Dealer, as the case may be, will deliver to the
Company all copies, other than permanent file copies, then in such Holder’s or Participating
Broker-Dealer’s possession, of the Prospectus covering such Registrable Notes current at the time
of the receipt of such notice. In the event the Company and the Guarantors shall give any such
notice, the Applicable Period shall be extended by the number of days during such periods from and
including the date of the giving of such notice to and including the date when each Participating
Broker-Dealer shall have received (x) the copies of the supplemented or amended Prospectus
contemplated by Section 6(k) or (y) the Advice.

7. Registration Expenses

	 	(a)	 	All fees and expenses incident to the performance of or compliance with this
Agreement by the Company and the Guarantors shall be borne by the Company and the
Guarantors, whether or not the Exchange Offer or a Shelf Registration Statement is
filed or becomes effective, including, without limitation, (i) all registration and
filing fees, including, without limitation, (A) fees with respect to filings required
to be made with the NASD in connection with any underwritten offering and (B) fees and
expenses of compliance with state securities or Blue Sky laws as provided in Section
6(h) hereof (including, without limitation, reasonable and documented fees and
disbursements of counsel in connection with Blue Sky qualifications of the Registrable
Notes or Exchange Notes and determination of the eligibility of the Registrable Notes
or Exchange Notes for investment under the laws of such jurisdictions (x) where the
Holders are located, in the case of the Exchange Notes, or (y) as provided in Section
6(h), in the case of Registrable Notes or Exchange Notes to be sold by a Participating
Broker-Dealer during the Applicable Period), (ii) printing expenses, including, without
limitation, expenses of printing Prospectuses if the printing of Prospectuses is
requested by the managing underwriter or underwriters, if any, or by the Holders of a
majority in aggregate principal amount of the Registrable Notes included in any
Registration Statement or by any Participating Broker-Dealer during the Applicable
Period, as the case may be, (iii) messenger, telephone and delivery expenses incurred
in connection with the performance of their obligations hereunder, (iv) fees and
disbursements of counsel for the Company, the Guarantors and, subject to Section 7(b),
the Holders, (v) fees and disbursements of all independent certified public accountants
referred to in Section 6 (including, without limitation, the expenses of any special
audit and “cold comfort” letters required by or incident to such performance), (vi)
rating agency fees and the fees and expenses incurred in connection with the listing of
the Securities to be registered on any securities exchange, (vii) Securities Act
liability insurance, if the Company and the Guarantors desire such insurance, (viii)
fees and expenses of all other Persons retained by the Company and the Guarantors, (ix)
fees and expenses of any “qualified independent underwriter” or other independent
appraiser participating in an offering pursuant to Section 3 of Schedule E to the
bylaws of the NASD, but only where the need for such a “qualified independent
underwriter” arises due to a relationship with the Company and the Guarantors, (x)
internal expenses of the Company and the Guarantors (including, without limitation, all
salaries and expenses of officers and employees of the Company or the Guarantors
performing legal or accounting duties), (xi) the expense of any annual audit, (xii) the
fees and expenses of the Trustee and the Exchange Agent and (xiii) the

18

 

	 	 	 	expenses relating to printing, word processing and distributing all Registration
Statements, underwriting agreements, securities sales agreements, indentures and any
other documents necessary in order to comply with this Agreement.
	 
	 	(b)	 	The Company and the Guarantors shall reimburse the Holders for the reasonable
and documented fees and disbursements of not more than one counsel chosen by the
Holders of a majority in aggregate principal amount of the Registrable Notes to be
included in any Registration Statement. The Company and the Guarantors shall pay all
documentary, stamp, transfer or other transactional taxes attributable to the issuance
or delivery of the Exchange Notes or Private Exchange Notes in exchange for the Notes;
provided that the Company shall not be required to pay taxes payable in respect
of any transfer involved in the issuance or delivery of any Exchange Note or Private
Exchange Note in a name other than that of the Holder of the Note in respect of which
such Exchange Note or Private Exchange Note is being issued. The Company and the
Guarantors shall reimburse the Holders for the reasonable and documented fees and
expenses (including reasonable fees and expenses of counsel to the Holders) relating to
any enforcement of any rights of the Holders under this Agreement.

8. Indemnification

	 	(a)	 	Indemnification by the Company and the Guarantors. The Company and the
Guarantors jointly and severally agree to indemnify and hold harmless each Holder of
Registrable Notes, Exchange Notes or Private Exchange Notes and each Participating
Broker-Dealer selling Exchange Notes during the Applicable Period, each Person, if any,
who controls each such Holder (within the meaning of Section 15 of the Securities Act
or Section 20(a) of the Exchange Act) and the officers, directors and partners of each
such Holder, Participating Broker-Dealer and controlling person, to the fullest extent
lawful, from and against any and all losses, claims, damages, liabilities, costs
(including, without limitation, reasonable and documented costs of preparation and
reasonable attorneys’ fees as provided in this Section 8) and expenses (including,
without limitation, reasonable costs and expenses incurred in connection with
investigating, preparing, pursuing or defending against any of the foregoing)
(collectively, “Losses”), as incurred, directly or indirectly caused by,
related to, based upon, arising out of or in connection with any untrue statement or
alleged untrue statement of a material fact contained in any Registration Statement,
Prospectus or form of prospectus, or in any amendment or supplement thereto, or in any
preliminary prospectus, or any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, except insofar
as such Losses are based upon information relating to such Holder or Participating
Broker-Dealer and furnished in writing to the Company and the Guarantors (or reviewed
and approved in writing) by such Holder or Participating Broker-Dealer or their counsel
expressly for use therein; provided, however, that the Company and the
Guarantors will not be liable to any Indemnified Party (as defined below) under this
Section 8 to the extent Losses were caused by an untrue statement or omission or
alleged untrue statement or omission that was contained or made in any preliminary
prospectus and corrected in the Prospectus or any amendment or supplement thereto if
(i) the Prospectus does not contain any other untrue statement or omission or alleged
untrue statement or omission of a material fact that was the subject matter of the
related proceedings, (ii) any such Losses resulted from an action, claim or suit by any
Person who purchased Registrable Notes or Exchange Notes which are the subject thereof
from such Indemnified Party and (iii) it is established in the related proceeding

19

 

	 	 	 	that such Indemnified Party failed to deliver or provide a copy of the Prospectus
(as amended or supplemented) to such Person with or prior to the confirmation of the
sale of such Registrable Notes or Exchange Notes sold to such Person if required by
applicable law, unless such failure to deliver or provide a copy of the Prospectus
(as amended or supplemented) was a result of noncompliance by the Company with
Section 6 of this Agreement. The Company and the Guarantors also agree to indemnify
underwriters, selling brokers, dealer managers and similar securities industry
professionals participating in the distribution, their officers, directors, agents
and employees and each Person who controls such Persons (within the meaning of
Section 15 of the Securities Act or Section 20(a) of the Exchange Act) to the same
extent as provided above with respect to the indemnification of the Holders or the
Participating Broker-Dealer.
	 
	 	(b)	 	Indemnification by Holder. In connection with any Registration
Statement, Prospectus or form of prospectus, any amendment or supplement thereto, or
any preliminary prospectus in which a Holder is participating, such Holder shall
furnish to the Company and the Guarantors in writing such information as the Company
and the Guarantors reasonably request for use in connection with any Registration
Statement, Prospectus or form of prospectus, any amendment or supplement thereto, or
any preliminary prospectus and shall indemnify and hold harmless the Company, the
Guarantors, their respective directors and each Person, if any, who controls the
Company and the Guarantors (within the meaning of Section 15 of the Securities Act and
Section 20(a) of the Exchange Act), and the directors, officers and partners of such
controlling persons, to the fullest extent lawful, from and against all Losses arising
out of or based upon any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement, Prospectus or form of prospectus or in
any amendment or supplement thereto or in any preliminary prospectus, or any omission
or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading to the extent, but only to the extent, that such losses
are finally judicially determined by a court of competent jurisdiction in a final,
unappealable order to have resulted from an untrue statement or alleged untrue
statement of a material fact or omission or alleged omission of a material fact
contained in or omitted from any information so furnished in writing by such Holder to
the Company and the Guarantors expressly for use therein. Notwithstanding the
foregoing, in no event shall the liability of any selling Holder be greater in amount
than such Holder’s Maximum Contribution Amount (as defined below).
	 
	 	(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 party or
parties from which such indemnity is sought (the “Indemnifying Party” or
“Indemnifying Parties”, as applicable) in writing; provided, that the
failure to so notify the Indemnifying Parties shall not relieve the Indemnifying
Parties from any obligation or liability except to the extent (but only to the extent)
that it shall be finally determined by a court of competent jurisdiction (which
determination is not subject to appeal) that the Indemnifying Parties have been
prejudiced materially by such failure.

     The Indemnifying Party shall have the right, exercisable by giving written notice to an
Indemnified Party, within 20 Business Days after receipt of written notice from such Indemnified
Party of such proceeding, to assume, at its expense, the defense of any such proceeding,
provided, that 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

20

 

such Indemnified Party or parties unless: (1) the Indemnifying Party has agreed to pay such
fees and expenses; or (2) the Indemnifying Party shall have failed promptly to assume the defense
of such proceeding or shall have failed to employ counsel reasonably satisfactory to such
Indemnified Party; or (3) the named parties to any such proceeding (including any impleaded
parties) include both such Indemnified Party and the Indemnifying Party or any of its affiliates or
controlling persons, and such Indemnified Party shall have been advised by counsel that there may
be one or more defenses available to such Indemnified Party that are in addition to, or in conflict
with, those defenses available to the Indemnifying Party or such affiliate or controlling person
(in which case, if such Indemnified Party notifies the Indemnifying Parties in writing that it
elects to employ separate counsel at the expense of the Indemnifying Parties, the Indemnifying
Parties shall not have the right to assume the defense and the reasonable fees and expenses of such
counsel shall be at the expense of the Indemnifying Party; it being understood, however, that, the
Indemnifying Party shall not, in connection with any one such proceeding or separate but
substantially similar or related proceedings in the same jurisdiction, arising out of the same
general allegations or circumstances, be liable for the fees and expenses of more than one separate
firm of attorneys (together with appropriate local counsel) at any time for such Indemnified
Party).

     No Indemnifying Party shall be liable for any settlement of any such proceeding effected
without its written consent, which shall not be unreasonably withheld, but if settled with its
written consent, or if there be a final judgment for the plaintiff in any such proceeding, each
Indemnifying Party jointly and severally agrees, subject to the exceptions and limitations set
forth above, to indemnify and hold harmless each Indemnified Party from and against any and all
Losses by reason of such settlement or judgment. The Indemnifying Party shall not consent to the
entry of any judgment or enter into any settlement that does not include as an unconditional term
thereof the giving by the claimant or plaintiff to each Indemnified Party of a release, in form and
substance reasonably satisfactory to the Indemnified Party, from all liability in respect of such
proceeding for which such Indemnified Party would be entitled to indemnification hereunder (whether
or not any Indemnified Party is a party thereto).

	 	(d)	 	Contribution. If the indemnification provided for in this Section 8 is
unavailable to an Indemnified Party or is insufficient to hold such Indemnified Party
harmless for any Losses in respect of which this Section 8 would otherwise apply by its
terms (other than by reason of exceptions provided in this Section 8), then each
applicable Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
have a joint and several obligation to 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, on the one hand, and such
Indemnified Party, on the other hand, 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, on the one hand, and
Indemnified Party, on the other hand, shall be determined by reference to, among other
things, whether any 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 Indemnified Party, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent any such statement or
omission. The amount paid or payable by an Indemnified Party as a result of any Losses
shall be deemed to include any legal or other 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 Section 8(a) or 8(b)
was available to such party.

     The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 8(d) were determined by pro rata allocation or by another method of allocation that
does not take account of the equitable considerations referred to in the immediately preceding
paragraph.

21

 

Notwithstanding the provisions of this Section 8(d), a selling Holder shall not be required to
contribute, in the aggregate, any amount in excess of such Holder’s Maximum Contribution Amount. A
selling Holder’s “Maximum Contribution Amount” shall equal the excess of (i) the aggregate
proceeds received by such Holder pursuant to the sale of such Registrable Notes or Exchange Notes
over (ii) the aggregate amount of damages that such Holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. The Holders’ obligations to contribute pursuant to this Section 8(d) are
several in proportion to the respective principal amount of the Registrable Securities held by each
Holder hereunder and not joint. The Company’s and Guarantors’ obligations to contribute pursuant
to this Section 8(d) are joint and several.

     The indemnity and contribution agreements contained in this Section 8 are in addition to any
liability that the Indemnifying Parties may have to the Indemnified Parties.

9. Rules 144 and 144A

     The Company covenants that it shall (a) file the reports required to be filed by it (if so
required) under the Securities Act and the Exchange Act in a timely manner and, if at any time the
Company is not required to file such reports, it will, upon the written request of any Holder of
Registrable Notes, make publicly available other information necessary to permit sales pursuant to
Rule 144 and 144A and (b) take such further action as any Holder may reasonably request in writing,
all to the extent required from time to time to enable such Holder to sell Registrable Notes
without registration under the Securities Act pursuant to the exemptions provided by Rule 144 and
Rule 144A. Upon the request of any Holder, the Company shall deliver to such Holder a written
statement as to whether it has complied with such information and requirements.

10. Underwritten Registrations of Registrable Notes

     If any of the Registrable Notes covered by any Shelf Registration Statement are to be sold in
an underwritten offering, the investment banker or investment bankers and manager or managers that
will manage the offering will be selected by the Holders of a majority in aggregate principal
amount of such Registrable Notes to be included in such offering; provided,
however, that such investment banker or investment bankers and manager or managers must be
reasonably acceptable to the Company.

     No Holder of Registrable Notes may participate in any underwritten registration hereunder
unless such Holder (a) agrees to sell such Holder’s Registrable Notes on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements
and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements, lock-up letters and other documents required under the terms of such underwriting
arrangements.

11. Miscellaneous

	 	(a)	 	Remedies. In the event of a breach by either the Company or any of the
Guarantors of any of their respective obligations under this Agreement, each Holder, in
addition to being entitled to exercise all rights provided herein, in the Indenture or,
in the case of either Initial Purchaser, in the Purchase Agreement, or granted by law,
including recovery of damages, will be entitled to specific performance of its rights
under this Agreement. The Company and the Guarantors agree that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by either the
Company or any of the Guarantors of any of the provisions of this Agreement and hereby
further agree

22

 

	 	 	 	that, in the event of any action for specific performance in respect of such breach,
the Company shall (and shall cause each Guarantor to) waive the defense that a
remedy at law would be adequate.
	 
	 	(b)	 	No Inconsistent Agreements. The Company and each of the Guarantors
have not entered, as of the date hereof, and the Company and each of the Guarantors
shall not enter, after the date of this Agreement, into any agreement with respect to
any of its securities that is inconsistent with the rights granted to the Holders of
Securities in this Agreement or otherwise conflicts with the provisions hereof. The
Company and each of the Guarantors have not entered and will not enter into any
agreement with respect to any of its securities that will grant to any Person
piggy-back rights with respect to a Registration Statement.
	 
	 	(c)	 	Adjustments Affecting Registrable Notes. The Company shall not,
directly or indirectly, take any action with respect to the Registrable Notes as a
class that would adversely affect the ability of the Holders to include such
Registrable Notes in a registration undertaken pursuant to this Agreement.
	 
	 	(d)	 	Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to or departures from the
provisions hereof may not be given, other than with the prior written consent of the
Holders of not less than a majority in aggregate principal amount of the then
outstanding Registrable Notes in circumstances that would adversely affect any Holders
of Registrable Notes; provided, however, that Section 8 and this
Section 11(d) may not be amended, modified or supplemented without the prior written
consent of each Holder. Notwithstanding the foregoing, a waiver or consent to depart
from the provisions hereof with respect to a matter that relates exclusively to the
rights of Holders of Registrable Notes whose securities are being tendered pursuant to
the Exchange Offer or sold pursuant to a Notes Registration Statement and that does not
directly or indirectly affect, impair, limit or compromise the rights of other Holders
of Registrable Notes may be given by Holders of at least a majority in aggregate
principal amount of the Registrable Notes being tendered or being sold by such Holders
pursuant to such Notes Registration Statement.
	 
	 	(e)	 	Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, registered first-class
mail, next-day air courier or telecopier:

	 	(i)	 	if to a Holder of Securities or to any Participating
Broker-Dealer, at the most current address of such Holder or Participating
Broker-Dealer, as the case may be, set forth on the records of the registrar of
the Notes, with a copy in like manner to the Initial Purchasers as follows:

Jefferies & Company, Inc.

520 Madison Avenue

New York, New York 10022

Facsimile No.: (212) 284-2280

Attention: Josh Targoff, Esq.

CIBC World Markets Corp.

300 Madison Avenue

New York, New York 10017

Facsimile No.: (212) 667-8366

23

 

Attention: Joanne Wong, Esq.

with a copy to:

White & Case LLP

1155 Avenue of the Americas

New York, New York 10036

Facsimile No.: (212) 354-8113

Attention: Ronald S. Brody, Esq.

	 	(ii)	 	if to the Initial Purchasers, at the address specified in Section 11(e)(i);
	 
	 	(iii)	 	if to the Company or any Guarantor, as follows:

Sterling Chemicals, Inc.

333 Clay Street, Suite 3600

Houston, Texas, 77002-4109

Facsimile No.: (713) 654-9577

Attention: General Counsel.

with a copy to:

Akin Gump Strauss Hauer & Feld LLP, 

1111 Louisiana Street

Houston, Texas, 77002-5800

Facsimile No.: (713) 236-0822

Attention: J. Michael Chambers, Esq.

     All such notices and communications shall be deemed to have been duly given: when delivered
by hand, if personally delivered; five Business Days after being deposited in the United States
mail, postage prepaid, if mailed; one Business Day after being timely delivered to a next-day air
courier guaranteeing overnight delivery; and when receipt is acknowledged by the addressee, if
telecopied.

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

	 	(f)	 	Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties hereto,
including, without limitation and without the need for an express assignment,
subsequent Holders of Securities.
	 
	 	(g)	 	Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.
	 
	 	(h)	 	Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.
	 
	 	(i)	 	Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE

24

 

	 	 	 	LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAW. EACH
OF THE COMPANY AND THE GUARANTORS HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF
ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK
OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN
RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT, AND IRREVOCABLY ACCEPTS FOR ITS AND IN RESPECT OF ITS PROPERTY, GENERALLY
AND UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS. EACH OF THE COMPANY AND
THE GUARANTORS IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO
UNDER APPLICABLE LAW, TRIAL BY JURY AND ANY OBJECTION THAT IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY
SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH OF THE COMPANY AND THE
GUARANTORS IRREVOCABLY CONSENTS, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO
UNDER APPLICABLE LAW, TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS
IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR
CERTIFIED MAIL, POSTAGE PREPAID, TO THE COMPANY AND THE GUARANTORS AT THEIR SAID
ADDRESS, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. NOTHING
HEREIN SHALL AFFECT THE RIGHT OF ANY HOLDER TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE
COMPANY OR THE GUARANTORS IN ANY OTHER JURISDICTION.
	 
	 	(j)	 	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.
	 
	 	(k)	 	Securities Held by the Company or Its Affiliates. Whenever the consent
or approval of Holders of a specified percentage of Securities is required hereunder,
Securities held by the Company or its affiliates (as such term is defined in Rule 405
under the Securities Act) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.
	 
	 	(l)	 	Third Party Beneficiaries. Holders and Participating Broker-Dealers
are intended third party beneficiaries of this Agreement and this Agreement may be
enforced by such Persons.

25

 

	 	(m)	 	Entire Agreement. This Agreement, together with the Purchase
Agreement, the Indenture and the Collateral Documents, is intended by the parties as a
final and exclusive statement of the agreement and understanding of the parties hereto
in respect of the subject matter contained herein and therein and any and all prior
oral or written agreements, representations, or warranties, contracts, understanding,
correspondence, conversations and memoranda between the Initial Purchasers on the one
hand and the Company and the Guarantors on the other, or between or among any agents,
representatives, parents, subsidiaries, affiliates, predecessors in interest or
successors in interest with respect to the subject matter hereof and thereof are merged
herein and replaced hereby.

[Remainder of page intentionally left blank.]

26

 

SIGNATURES

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

	 	 	 	 	 	 	 
	 

	 	STERLING CHEMICALS, INC.
	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

	 	 	 	 	 	 	 
	 	 	GUARANTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	STERLING CHEMICALS ENERGY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

	 	 	 	 	 
	Accepted and Agreed to:	 	 
	 
	 	 	 	 
	JEFFERIES & COMPANY, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	CIBC WORLD MARKETS CORP.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

27

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