Document:

abat8k20090617ex10-f.htm

    
      

      

    

    Exhibit 10-f

    SERIES
C WARRANT

     

    NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AND,
UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT, AS EVIDENCED BY A
LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.  THIS SECURITY
AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
SECURITIES.

    

    COMMON
STOCK PURCHASE WARRANT

    

    ADVANCED
BATTERY TECHNOLOGIES, INC.

     

    
      	
              Warrant
      Shares: __________

            	
              Initial
      Exercise Date: December 12, 2009

            

    

    

     

    THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies
that, for value received, ________________ (the “Holder”) is entitled,
upon the terms and subject to the limitations on exercise and the conditions
hereinafter set forth, at any time on or after the six month anniversary of the
date hereof (the “Initial Exercise
Date”) and on or prior to the close of business on the five year
anniversary of the Initial Exercise Date  (the “Termination Date”)
but not thereafter, to subscribe for and purchase from Advanced Battery
Technologies, Inc., a Delaware corporation (the “Company”), up to
_________ shares (the “Warrant Shares”) of
Common Stock.  The purchase price of one share of Common Stock under
this Warrant shall be equal to the Exercise Price, as defined in Section
2(b).

     

    Section
1.            Definitions.  Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
that certain Securities Purchase Agreement (the “Purchase Agreement”),
dated June 12, 2009, among the Company and the purchasers signatory
thereto.

     

    Section
2.             Exercise.

    

    
      
        
           

        

        
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    a)           Exercise of
Warrant.  Exercise of the purchase rights represented by this
Warrant may be made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by delivery to the
Company (or such other office or agency of the Company as it may designate by
notice in writing to the registered Holder at the address of the Holder
appearing on the books of the Company) of a duly executed facsimile copy of the
Notice of Exercise Form annexed hereto; and, within three (3) Trading Days of
the date said Notice of Exercise is delivered to the Company, the Company shall
have received  payment of the aggregate Exercise Price of the shares
thereby purchased by wire transfer or cashier’s check drawn on a United States
bank or, if available, pursuant to the cashless exercise procedure specified in
Section 2(c) below.  Notwithstanding anything herein to the contrary,
the Holder shall not be required to physically surrender this Warrant to the
Company until the Holder has purchased all of the Warrant Shares available
hereunder and the Warrant has been exercised in full, in which case, the Holder
shall surrender this Warrant to the Company for cancellation within three (3)
Trading Days of the date the final Notice of Exercise is delivered to the
Company.  Partial exercises of this Warrant resulting in purchases of
a portion of the total number of Warrant Shares available hereunder shall have
the effect of lowering the outstanding number of Warrant Shares purchasable
hereunder in an amount equal to the applicable number of Warrant Shares
purchased.  The Holder and the Company shall maintain records showing
the number of Warrant Shares purchased and the date of such
purchases.  The Company shall deliver any objection to any Notice of
Exercise Form within 1 Business Day of receipt of such notice.  In the
event of any dispute or discrepancy, the records of the Holder shall be
controlling and determinative in the absence of manifest error. The Holder and any assignee, by
acceptance of this Warrant, acknowledge and agree that, by reason of the
provisions of this paragraph, following the purchase of a portion of the Warrant
Shares hereunder, the number of Warrant Shares available for purchase hereunder
at any given time may be less than the amount stated on the face hereof.
NOTWITHSTANDING ANY PROVISION OF THIS WARRANT TO THE CONTRARY, NO MORE THAN THE
MAXIMUM ELIGIBILITY NUMBER OF WARRANT SHARES SHALL BE EXERCISABLE HEREUNDER.
As used herein, "Maximum Eligibility Number"
means initially zero and shall be increased each time the Holder exercises its Series
B Warrant issued to the Holder by the Company pursuant to the Purchase Agreement
by an amount equal to twenty-five percent (25%) of the number of Warrant Shares
issued to the Holder under such Series B Warrant.

     

    b)           Exercise
Price.  The exercise price per share of the Common Stock under
this Warrant shall be $5.68, subject to adjustment
hereunder (the “Exercise
Price”).

     

    c)           Cashless
Exercise.  If at any time after the six (6) month anniversary
of the date this Warrant was issued to the Holder, there is no effective
Registration Statement registering, or no current prospectus available for, the
resale of the Warrant Shares by the Holder, then this Warrant may also be
exercised, in whole or in part, at such time by means of a “cashless exercise”
in which the Holder shall be entitled to receive a certificate for the number of
Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A),
where:

     

    
      
        
          	 
      	
                  (A)
      =

                	
                  the
      VWAP on the Trading Day immediately preceding the date on which Holder
      elects to exercise this Warrant by means of a “cashless exercise,” as set
      forth in the applicable Notice of Exercise;

                
	 
      	 
      	 
      
	 
      	
                  (B)
      =

                	
                  the
      Exercise Price of this Warrant, as adjusted hereunder;
  and

                
	 
      	 
      	 
      
	 
      	
                  (X)
      =

                	
                  the
      number of Warrant Shares that would be issuable upon exercise of this
      Warrant in accordance with the terms of this Warrant if such exercise were
      by means of a cash exercise rather than a cashless
    exercise.

                

        

      

    

    

    
      
        
           

        

        
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    Notwithstanding
anything herein to the contrary and subject to Section 2(e), on the Termination
Date, this Warrant shall be automatically exercised via cashless exercise
pursuant to this Section 2(c).

    

    
      d)         
 Mechanics of
Exercise.

    

     

    i.      Delivery of Certificates
Upon Exercise.  Certificates for shares purchased hereunder
shall be transmitted by the Transfer Agent to the Holder by crediting the
account of the Holder’s prime broker with the Depository Trust Company through
its Deposit Withdrawal Agent Commission (“DWAC”) system if the
Company is then a participant in such system and either (A) there is an
effective Registration Statement permitting the issuance of the Warrant Shares
to or resale of the Warrant Shares by the Holder or (B) the shares are eligible
for resale by the Holder without volume or manner-of-sale limitations pursuant
to Rule 144, and otherwise by physical delivery to the address specified by the
Holder in the Notice of Exercise by the date that is three (3) Trading Days
after the latest of (A) the delivery to the Company of the Notice of Exercise
Form, (B) surrender of this Warrant (if required), and (C) payment of the
aggregate Exercise Price as set forth above (including by cashless exercise, if
permitted) (such date, the “Warrant Share Delivery
Date”).  This Warrant shall be deemed to have been exercised on
the first date on which all of the foregoing have been delivered to the
Company.  The Warrant Shares shall be deemed to have been issued, and
Holder or any other person so designated to be named therein shall be deemed to
have become a holder of record of such shares for all purposes, as of the date
the Warrant has been exercised, with payment to the Company of the Exercise
Price (or by cashless exercise, if permitted) and all taxes required to be paid
by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of
such shares, having been paid.  If the Company fails for any reason to
deliver to the Holder certificates evidencing the Warrant Shares subject to a
Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to
the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000
of Warrant Shares subject to such exercise (based on the VWAP of the Common
Stock on the date of the applicable Notice of Exercise), $10 per Trading Day
(increasing to $20 per Trading Day on the fifth Trading Day after such
liquidated damages begin to accrue) for each Trading Day after such Warrant
Share Delivery Date until such certificates are delivered or Holder rescinds
such exercise.

    

    
      
        
           

        

        
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    ii.          Delivery of New Warrants
Upon Exercise.  If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this
Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

     

    iii.         Rescission
Rights.  If the Company fails to cause the Transfer Agent to
transmit to the Holder a certificate or the certificates representing the
Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date,
then, the Holder will have the right to rescind such exercise.

     

    iv.         Compensation for Buy-In on
Failure to Timely Deliver Certificates Upon Exercise.  In
addition to any other rights available to the Holder, if the Company fails to
cause the Transfer Agent to transmit to the Holder a certificate or the
certificates representing the Warrant Shares pursuant to an exercise on or
before the Warrant Share Delivery Date, and if after such date the Holder is
required by its broker to purchase (in an open market transaction or otherwise)
or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to
deliver in satisfaction of a sale by the Holder of the Warrant Shares which the
Holder anticipated receiving upon such exercise (a “Buy-In”), then the
Company shall , within three (3) Trading Days after the Holder's request and in
the Holder's discretion, either (i) pay cash to the Holder in an amount equal to
the Holder's total purchase price (including brokerage commissions, if any) for
the shares of Common Stock so purchased (the "Buy-In Price"), at
which point the Company's obligation to deliver such certificate (and to issue
such Warrant Shares or credit such Holder's balance account with The Depository
Trust Company ("DTC")) shall
terminate, or (ii) promptly honor its obligation to deliver to the Holder a
certificate or certificates representing such Warrant Shares or credit such
Holder's balance account with DTC and pay cash to the Holder in an amount equal
to the excess (if any) of the Buy-In Price over the product of (A) such number
of shares of Common Stock, times (B) the VWAP on the date of
exercise.  The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the Buy-In and, upon
request of the Company, evidence of the amount of such loss.  Nothing
herein shall limit a Holder’s right to pursue any other remedies available to it
hereunder, at law or in equity including, without limitation, a decree of
specific performance and/or injunctive relief with respect to the Company’s
failure to timely deliver certificates representing shares of Common Stock upon
exercise of the Warrant as required pursuant to the terms hereof.

    

    
      
        
           

        

        
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    v.         No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  As to any
fraction of a share which the Holder would otherwise be entitled to purchase
upon such exercise, the Company shall, at its election, either pay a cash
adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole
share.

     

    vi.         Charges, Taxes and
Expenses.  Issuance of certificates for Warrant Shares shall be
made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such certificate, all of which
taxes and expenses shall be paid by the Company, and such certificates shall be
issued in the name of the Holder or in such name or names as may be directed by
the Holder; provided, however, that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder
and the Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto.

     

    vii.         Closing of
Books.  The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

     

    

    
      
        
           

        

        
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    e)           Holder’s Exercise
Limitations.  The Company shall not effect any exercise of this
Warrant, and a Holder shall not have the right to exercise any portion of this
Warrant, pursuant to Section 2 or otherwise, to the extent that after giving
effect to such issuance after exercise as set forth on the applicable Notice of
Exercise, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s
Affiliates), would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below).  For purposes of the foregoing sentence, the
number of shares of Common Stock beneficially owned by the Holder and its
Affiliates shall include the number of shares of Common Stock issuable upon
exercise of this Warrant with respect to which such determination is being made,
but shall exclude the number of shares of Common Stock which would be issuable
upon (i) exercise of the remaining, nonexercised portion of this Warrant
beneficially owned by the Holder or any of its Affiliates and (ii) exercise or
conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other  Common Stock
Equivalents) subject to a limitation on conversion or exercise analogous to the
limitation contained herein beneficially owned by the Holder or any of its
Affiliates.  Except as set forth in the preceding sentence, for purposes of
this Section 2(e), beneficial ownership shall be calculated in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and
the rules and regulations promulgated thereunder, it being acknowledged by the
Holder that the Company is not representing to the Holder that such calculation
is in compliance with Section 13(d) of the Exchange Act and the Holder is solely
responsible for any schedules required to be filed in accordance
therewith.   To the extent that the limitation contained in this
Section 2(e) applies, the determination of whether this Warrant is exercisable
(in relation to other securities owned by the Holder together with any
Affiliates) and of which portion of this Warrant is exercisable shall be in the
sole discretion of the Holder, and the submission of a Notice of Exercise shall
be deemed to be the Holder’s determination of whether this Warrant is
exercisable (in relation to other securities owned by the Holder together with
any Affiliates) and of which portion of this Warrant is exercisable, in each
case subject to the Beneficial Ownership Limitation, and the Company shall have
no obligation to verify or confirm the accuracy of such
determination.   In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated
thereunder.  For purposes of this Section 2(e), in determining the
number of outstanding shares of Common Stock, a Holder may rely on the number of
outstanding shares of Common Stock as reflected in (A) the Company’s most recent
periodic or annual report filed with the Commission, as the case may be, (B) a
more recent public announcement by the Company or (C) a more recent written
notice by the Company or the Transfer Agent setting forth the number of shares
of Common Stock outstanding.  Upon the written or oral request of a Holder,
the Company shall within two Trading Days confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding.  In any case,
the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company,
including this Warrant, by the Holder or its Affiliates since the date as of
which such number of outstanding shares of Common Stock was
reported.  The “Beneficial Ownership
Limitation” shall be 4.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon exercise of this Warrant.  The Holder upon written
notice to the Company, may increase or decrease the Beneficial Ownership
Limitation provisions of this Section 2(e), provided that the Beneficial
Ownership Limitation in no event exceeds 9.99% of the number of shares of the
Common Stock outstanding immediately after giving effect to the issuance of
shares of Common Stock upon exercise of this Warrant held by the Holder and the
provisions of this Section 2(e) shall continue to apply.  Any such
increase will not be effective until the 61st day
after such notice is delivered to the Company.  The provisions of this
paragraph shall be construed and implemented in a manner otherwise than in
strict conformity with the terms of this Section 2(e) to correct this paragraph
(or any portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or
supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a successor holder of
this Warrant.

    

    
      
        
           

        

        
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    Section
3.             Certain
Adjustments.

     

    a)           Stock Dividends and
Splits. If the Company, at any time while this Warrant is outstanding:
(i) pays a stock dividend or otherwise makes a distribution or distributions on
shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not
include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (ii) subdivides outstanding shares of Common Stock into a larger
number of shares, (iii) combines (including by way of reverse stock split)
outstanding shares of Common Stock into a smaller number of shares or (iv)
issues by reclassification of shares of the Common Stock any shares of capital
stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common
Stock (excluding treasury shares, if any) outstanding immediately before such
event and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event, and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged.  Any
adjustment made pursuant to this Section 3(a) shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or
re-classification.

     

    b)           RESERVED.

     

    c)           Subsequent Rights
Offerings.  If the Company, at any time while the Warrant is
outstanding, shall issue rights, options or warrants to all holders of Common
Stock (and not to the Holders) entitling them to subscribe for or purchase
shares of Common Stock at a price per share less than the VWAP on the record
date mentioned below, then, the Exercise Price shall be multiplied by a
fraction, of which the denominator shall be the number of shares of the Common
Stock outstanding on the date of issuance of such rights, options or warrants
plus the number of additional shares of Common Stock offered for subscription or
purchase, and of which the numerator shall be the number of shares of the Common
Stock outstanding on the date of issuance of such rights, options or warrants
plus the number of shares which the aggregate offering price of the total number
of shares so offered (assuming receipt by the Company in full of all
consideration payable upon exercise of such rights, options or warrants) would
purchase at such VWAP.  Such adjustment shall be made whenever such
rights, options or warrants are issued, and shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such rights, options or warrants.

     

    d)           Pro Rata
Distributions.  If the Company, at any time while this Warrant
is outstanding, shall distribute to all holders of Common Stock (and not to the
Holders) evidences of its indebtedness or assets (including cash and cash
dividends) or rights or warrants to subscribe for or purchase any security other
than the Common Stock), then in each such case the Exercise Price shall be
adjusted by multiplying the Exercise Price in effect immediately prior to the
record date fixed for determination of stockholders entitled to receive such
distribution by a fraction of which the denominator shall be the VWAP determined
as of the record date mentioned above, and of which the numerator shall be such
VWAP on such record date less the then per share fair market value at such
record date of the portion of such assets or evidence of indebtedness or rights
or warrants so distributed applicable to one outstanding share of the Common
Stock as determined by the Board of Directors in good faith.  In
either case the adjustments shall be described in a statement provided to the
Holder of the portion of assets or evidences of indebtedness so distributed or
such subscription rights applicable to one share of Common
Stock.  Such adjustment shall be made whenever any such distribution
is made and shall become effective immediately after the record date mentioned
above.

    

    
      
        
           

        

        
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    e)           Fundamental
Transaction. If, at any time while this Warrant is outstanding, in one or
more related transactions (i) the Company or any of its Subsidiaries, directly
or indirectly, in one or more related transactions effects any merger or
consolidation of the Company or any of its Subsidiaries with or into another
Person, (ii) the Company, directly or indirectly, effects any sale, lease,
license, assignment, transfer, conveyance or other disposition of all or
substantially all of its assets in one or a series of related transactions,
(iii) any, direct or indirect, purchase offer, tender offer or exchange offer
(whether by the Company or another Person) is completed pursuant to which
holders of Common Stock are permitted to sell, tender or exchange their shares
for other securities, cash or property and has been accepted by the holders of
50% or more of the outstanding Common Stock, (iv) the Company, directly or
indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively converted into or
exchanged for other securities, cash or property, (v) the Company, directly or
indirectly, in one or more related transactions consummates a stock or share
purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with
another Person whereby such other Person acquires more than 50% of the
outstanding shares of Common Stock (not including any shares of Common Stock
held by the other Person or other Persons making or party to, or associated or
affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination), or (vi) any "person" or
"group" (as these terms are used for purposes of Sections 13(d) and 14(d) of the
Exchange Act), to become the "beneficial owner" (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary
voting power represented by issued and outstanding Common Stock (each a “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, at the option of the Holder (without regard to any
limitation in Section 2(e) on the exercise of this Warrant), the number of
shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and any additional consideration
(the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by
a holder of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such Fundamental Transaction (without regard to
any limitation in Section 2(e) on the exercise of this Warrant).  For
purposes of any such exercise, the determination of the Exercise Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the

    
      
        
           

        

        
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    Alternate
Consideration in a reasonable manner reflecting the relative value of any
different components of the Alternate Consideration.  If holders of
Common Stock are given any choice as to the securities, cash or property to be
received in a Fundamental Transaction, then the Holder shall be given the same
choice as to the Alternate Consideration it receives upon any exercise of this
Warrant following such Fundamental Transaction.  Notwithstanding
anything to the contrary, in the event of a Fundamental Transaction or a Change
of Control Transaction (as defined in the Certificate of Designation) other than
one in which a Successor Entity (as defined below) that is a publicly traded
corporation whose stock is quoted or listed for trading on an Eligible Market
assumes this Warrant such that the Warrant shall be exercisable for the publicly
traded Common Stock of such Successor Entity, the Company or any Successor
Entity  shall, at the Holder’s option, exercisable at any time
concurrently with, or within 30 days after, the consummation of the Fundamental
Transaction or the Change of Control Transaction, as applicable, purchase
this Warrant from the Holder by paying to the Holder an amount of cash
equal to the Black Scholes Value of the remaining unexercised portion of this
Warrant on the date of the consummation of such Fundamental Transaction or such
Change of Control Transaction, as applicable.  As used herein (w)
“Black
Scholes Value” means the value of this Warrant based on the Black and
Scholes Option Pricing Model obtained from the “OV” function on Bloomberg, L.P.
(“Bloomberg”)
determined as of the day of consummation of the applicable Fundamental
Transaction for pricing purposes and reflecting (A) a risk-free interest rate
corresponding to the U.S. Treasury rate for a period equal to the time between
the date of the public announcement of the applicable Fundamental Transaction
and the Termination Date, (B) an expected volatility equal to the greater of
100% and the 100 day volatility obtained from the HVT function on Bloomberg as
of the Trading Day immediately following the public announcement of the
applicable Fundamental Transaction, (C) the underlying price per share used in
such calculation shall be the sum of the price per share being offered in cash,
if any, plus the value of any non-cash consideration, if any, being offered in
such Fundamental Transaction and (D) a remaining option time equal to the time
between the date of the public announcement of the applicable Fundamental
Transaction and the Termination Date, (x) “Successor
Entity"
means the
Person
(as defined in the Purchase Agreement) (or, if so elected by the Holder, the
Parent Entity (as defined below)) formed by, resulting from or surviving any
Fundamental Transaction or the Person (or, if so elected by the Holder, the
Parent Entity) with which
such Fundamental Transaction shall have been entered into, (y) "Eligible
Market"
means the NYSE Amex, The NASDAQ Capital Market, The NASDAQ Global Market,
The NASDAQ Global Select Market or the New York Stock Exchange (or any
successors to any of the foregoing)
and (z) "Parent
Entity"
of a Person means an
entity that, directly or indirectly, controls the applicable Person and whose
common
stock or equivalent equity security is quoted or listed on an Eligible
Market,
or, if there is more than one such Person
or Parent Entity, the Person or Parent Entity with the largest public market
capitalization as of the date of consummation of the Fundamental
Transaction.  The Company shall cause any Successor Entity to
assume in writing all of the obligations of the Company under this Warrant and
the other Transaction Documents in accordance with the provisions of this
Section 3(e) pursuant to written agreements in form and substance reasonably
satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such

    
      
        
           

        

        
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    Fundamental
Transaction and shall, at the option of the holder of this Warrant, deliver to
the Holder in exchange for this Warrant a security of the Successor Entity
evidenced by a written instrument substantially similar in form and substance to
this Warrant which is exercisable for a corresponding number of shares of
capital stock of such Successor Entity (or its parent entity) equivalent to the
shares of Common Stock acquirable and receivable upon exercise of this Warrant
(without regard to any limitations on the exercise of this Warrant) prior to
such Fundamental Transaction, and with an exercise price which applies the
exercise price hereunder to such shares of capital stock (but taking into
account the relative value of the shares of Common Stock pursuant to such
Fundamental Transaction and the value of such shares of capital stock, such
number of shares of capital stock and such exercise price being for the purpose
of protecting the economic value of this Warrant immediately prior to the
consummation of such Fundamental Transaction), and which is reasonably
satisfactory in form and substance to the Holder. Upon the occurrence of any
such Fundamental Transaction, the Successor Entity shall succeed to, and be
substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may
exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other Transaction
Documents with the same effect as if such Successor Entity had been named as the
Company herein.

     

    f)           Calculations. All
calculations under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of this Section 3,
the number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall be the sum of the number of shares of Common Stock (excluding
treasury shares, if any) issued and outstanding.  Upon each such
adjustment of the Exercise Price hereunder, the number of Warrant Shares shall
be adjusted to the number of shares of Common Stock determined by multiplying
the Exercise Price in effect immediately prior to such adjustment by the number
of Warrant Shares acquirable upon exercise of this Warrant immediately prior to
such adjustment and dividing the product thereof by the Exercise Price resulting
from such adjustment. No adjustment pursuant to this Section 3 will increase the
Exercise Price or decrease the number of Warrant Shares.

     

    g)           Notice to
Holder.

     

    i.      Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall promptly mail to the Holder a notice
setting forth the Exercise Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment. If the Company enters into a
Variable Rate Transaction, despite the prohibition thereon in the Purchase
Agreement, the Company shall be deemed to have issued Common Stock or Common
Stock Equivalents at the lowest possible conversion or exercise price at which
such securities may be converted or exercised.

    

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

     

    ii.           Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock, (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights, (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, or any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property, or (E) the Company shall authorize the voluntary
or involuntary dissolution, liquidation or winding up of the affairs of the
Company, then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least 20 calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice.  To the extent that
any notice provided hereunder constitutes, or contains, material, non-public
information regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K.  The Holder shall remain entitled to exercise this
Warrant during the period commencing on the date of such notice to the effective
date of the event triggering such notice  except as may otherwise be
expressly set forth herein.

     

    Section
4.             Transfer of
Warrant.

     

    a)           Transferability.  Subject
to compliance with any applicable securities laws and the conditions set forth
in Section 4(d) hereof and to the provisions of Section 4.1 of the Purchase
Agreement, this Warrant and all rights hereunder (including, without limitation,
any registration rights) are transferable, in whole or in part, upon surrender
of this Warrant at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such
transfer.  Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees, as applicable, and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled.  The Warrant, if properly
assigned in accordance herewith, may be exercised by a new holder for the
purchase of Warrant Shares without having a new Warrant issued.

    

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

     

    b)           New Warrants. This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney.  Subject to compliance
with Section 4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice. All Warrants issued on transfers or exchanges shall be dated
the Initial Exercise Date and shall be identical with this Warrant except as to
the number of Warrant Shares issuable pursuant thereto.

     

    c)           Warrant Register. The
Company shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant Register”),
in the name of the record Holder hereof from time to time.  The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the
contrary.

     

    d)           Transfer
Restrictions. If, at the time of the surrender of this Warrant in
connection with any transfer of this Warrant, the transfer of this Warrant shall
not be either (i) registered pursuant to an effective registration statement under the Securities
Act and under applicable state securities or
blue sky laws or (ii) eligible for resale without volume or manner-of-sale
restrictions or current public information requirements pursuant to Rule 144,
the Company may require, as a condition of allowing such transfer, that the
Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section
5.7 of the Purchase Agreement.

     

    e)           Representation by the
Holder.  The Holder, by the acceptance hereof, represents and
warrants that it is acquiring this Warrant and, upon any exercise hereof, will
acquire the Warrant Shares issuable upon such exercise, for its own account and
not with a view to or for distributing or reselling such Warrant Shares or any
part thereof in violation of the Securities Act or any applicable state
securities law, except pursuant to sales registered or exempted under the
Securities Act.

     

    Section
5.             Miscellaneous.

     

    a)           No Rights as Stockholder
Until Exercise.  This Warrant does not entitle the Holder to
any voting rights, dividends or other rights as a stockholder of the Company
prior to the exercise hereof as set forth in Section 2(d)(i).

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

     

    b)           Loss, Theft, Destruction or
Mutilation of Warrant. The Company covenants that upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to
the Warrant Shares, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it (which, in the case of the Warrant, shall
not include the posting of any bond), and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

     

    c)           Saturdays, Sundays,
Holidays, etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not
be a Business Day, then, such action may be taken or such right may be exercised
on the next succeeding Business Day.

     

    d)           Authorized
Shares.

     

    The
Company covenants that, during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant.  The Company further covenants
that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant.  The Company will
take all such reasonable action as may be necessary to assure that such Warrant
Shares may be issued as provided herein without violation of any applicable law
or regulation, or of any requirements of the Trading Market upon which the
Common Stock may be listed.  The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant and payment for such Warrant Shares in accordance herewith, be duly
authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges created by the Company in respect of the issue thereof
(other than taxes in respect of any transfer occurring contemporaneously with
such issue).

     

    Except
and to the extent as waived or consented to by the Holder, the Company shall not
by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against
impairment.  Without limiting the generality of the foregoing, the
Company will (i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (ii) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant and (iii) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may be,
necessary to enable the Company to perform its obligations under this
Warrant.

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

     

    Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

     

    e)           Jurisdiction. All
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be determined in accordance with the provisions of the
Purchase Agreement.

     

    f)           Restrictions.  The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered and the Holder does not utilize cashless exercise,
will have restrictions upon resale imposed by state and federal securities
laws.

     

    g)           Nonwaiver and
Expenses.  No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder’s rights, powers or remedies,
notwithstanding the fact that all rights hereunder terminate on the Termination
Date.  If the Company willfully and knowingly fails to comply with any
provision of this Warrant, which results in any material damages to the Holder,
the Company shall pay to Holder such amounts as shall be sufficient to cover any
costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by Holder in collecting any
amounts due pursuant hereto or in otherwise enforcing any of its rights, powers
or remedies hereunder.

     

    h)           Notices.  Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

     

    i)           Limitation of
Liability.  No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant to purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

     

    j)           Remedies.  The
Holder, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific performance of its
rights under this Warrant.  The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach
by it of the provisions of this Warrant and hereby agrees to waive and not to
assert the defense in any action for specific performance that a remedy at law
would be adequate.

    

    
      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

     

    k)           Successors and
Assigns.  Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the benefit of
and be binding upon the successors and permitted assigns of the Company and the
successors and permitted assigns of Holder.  The provisions of this
Warrant are intended to be for the benefit of any Holder from time to time of
this Warrant and shall be enforceable by the Holder or holder of Warrant
Shares.

     

    l)           Amendment.  This
Warrant may be modified or amended or the provisions hereof waived with the
written consent of the Company and Holders holding Warrants at least equal to
100% of the Warrant Shares issuable upon exercise of all then outstanding
Warrants.

     

    m)           Severability.  Wherever
possible, each provision of this Warrant shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

     

    n)           Headings.  The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

     

    

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

    

    

    (Signature
Pages Follow)

     

    

    
      
        
           

        

        
          15

          
            

          

        

        
           

        

      

    

    

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized as of the date first above
indicated.

     

    

    
 

    
      
        	
                ADVANCED
      BATTERY TECHNOLOGIES, INC.

                 

                 

              
	
                By:__________________________________________

                     Name:

                     Title:

                 

              

      

    

    

    

    

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

    

    NOTICE
OF EXERCISE

    

    TO:           ADVANCED
BATTERY TECHNOLOGIES, INC.

    

    (1)           The
undersigned hereby elects to purchase ________ Warrant Shares of the Company
pursuant to the terms of the attached Warrant (only if exercised in full), and
tenders herewith payment of the exercise price in full, together with all
applicable transfer taxes, if any.

     

    (2)           Payment
shall take the form of (check applicable box):

     

    [  ]
in lawful money of the United States; or

     

    [ ] [if
permitted] the cancellation of such number of Warrant Shares as is necessary, in
accordance with the formula set forth in subsection 2(c), to exercise this
Warrant with respect to the maximum number of Warrant Shares purchasable
pursuant to the cashless exercise procedure set forth in subsection
2(c).

     

    (3)           Please
issue a certificate or certificates representing said Warrant Shares in the name
of the undersigned or in such other name as is specified below:

     

    _______________________________

    

    

    The
Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

    

    _______________________________

    

    _______________________________

    

    _______________________________

    

    (4)  Accredited
Investor.  If the Warrant is not being exercised pursuant to
Subsection 2(c), the undersigned hereby represents it is an “accredited
investor” as defined in Regulation D promulgated under the Securities Act of
1933, as amended.

    

    [SIGNATURE
OF HOLDER]

    

    Name of
Investing Entity:
_______________________________________________________________________

    Signature of Authorized Signatory of
Investing Entity:
_________________________________________________

    Name of
Authorized Signatory:
___________________________________________________________________

    Title of
Authorized Signatory:
____________________________________________________________________

    Date:
_______________________________________________________________________________________

    

    

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    

    

    

    FOR VALUE
RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
rights evidenced thereby are hereby assigned to

     

    

    _______________________________________________
whose address is

    

    _______________________________________________________________.

    

    

    

    _______________________________________________________________

    

    Dated:  ______________,
_______

    
       

      

        
          
            
              	 
      	
                      Holder’s
      Signature:

                    	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                      Holder’s
      Address:

                    	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

            

          

        

      

    

     

    

    

    Signature
Guaranteed:  ___________________________________________

    

    

    NOTE:  The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust
company.  Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign
the foregoing Warrant.Exhibit 10.1

 

AGREEMENT OF COMPROMISE AND SETTLEMENT

 

This Agreement of Compromise and Settlement (the “Agreement” or “Settlement”)
is entered into as of June 22, 2009, between and among Credit Suisse
Securities (USA) LLC (“CS”) and Deutsche Bank Securities Inc. (“DB”) (together,
the “Lenders”) on the one hand, and Huntsman Corporation (“Huntsman”) on the
other hand (the Lenders and Huntsman are each sometimes referred to herein as a
“Party”, or collectively as the “Parties”):

 

RECITALS

 

WHEREAS, the Parties are presently engaged in the trial of a lawsuit
entitled Huntsman Corporation v. Credit Suisse Securities (USA) LLC and
Deutsche Bank Securities, Inc., Cause No. 08-09-09258 (District
Court, 9th Judicial District, Montgomery County, Texas (the “Court”)) (the “Litigation”);

 

WHEREAS, the Parties were unable to settle the matter prior to trial;

 

WHEREAS, on June 19, the duly authorized members of the Huntsman
Litigation Committee met personally with representatives of the Lenders to
discuss whether a settlement could be achieved;

 

WHEREAS, concurrently with the execution of this Agreement the Parties
have executed and delivered the Note Purchase Agreement for the 51⁄2% Senior
Notes Due 2016 and the Fourth Amendment to Credit Agreement;

 

WHEREAS, the Parties now wish to enter into this Agreement and into the
Debt Facilities (as defined below) in order to obviate the need for further
protracted and expensive litigation, with no admission of liability by any
Party, which each Party expressly denies; and

 

 

WHEREAS, the Parties now wish, subject to the terms and conditions
contained in this Agreement, to settle and to resolve, fully and finally, all
disputes, claims and controversies between them related to the Litigation,
including all claims and counterclaims that were asserted or that could have
been asserted in the Litigation by any of the Parties;

 

NOW, THEREFORE, in consideration of the mutual promises and
undertakings set forth herein, the receipt and sufficiency of which are hereby
mutually acknowledged, and intending to be legally bound hereby, the Parties
hereby agree as follows:

 

AGREEMENT

 

1.             Payment.

 

On or before June 23, 2009, CS and DB, or their respective
affiliates, each shall make a payment to Huntsman in the amount of
$310,000,000, for a total of $620,000,000 (the “Settlement Amount”), it being
agreed that each of CS and DB shall remain obligated to make their respective
$310,000,000 payment until it is paid in full. 
On the same date, CS and DB, or their respective affiliates, shall
reimburse Huntsman’s litigation costs and attorneys’ fees in the Litigation, up
to a maximum cap of $6,000,000 each, for a total maximum cap of $12,000,000
(the “Attorneys’ Fees Amount”), upon certification by Huntsman’s General
Counsel that Huntsman has incurred litigation costs and attorneys’ fees equal
to or in excess of the Attorneys’ Fees Amount, it being agreed that each of CS
and DB shall remain obligated to make their respective payment of the Attorneys’
Fees Amount until it is paid in full. 
The Settlement Amount and the Attorneys’ Fees Amount are referred to
herein as the “Settlement Payments”.  The
Settlement Payments shall be made by wire transfer to:

 

2

 

ABA
No:     043000261

Swift Code: MELNUS3P

Bank Name:  Mellon Bank, Pittsburgh, PA

Address:    500 Ross Street

Pittsburgh, PA

Beneficiary:     
Huntsman Corporation

Account No: 020-5479

 

2.             The Debt Facilities.

 

On
or before June 23, 2009, CS and DB, or their respective affiliates, will
also provide the term loans described in Exhibit A (the “Additional Term
Loans”) and purchase the notes described in Exhibit B (the “Notes” and,
together with the Additional Term Loans, the “Debt Facilities”), in each case
with and upon the terms and subject to the conditions set forth herein
(including the exhibits hereto) and in the Debt Facilities agreements, it being
agreed that CS and DB shall remain obligated to perform under this paragraph
until the Debt Facilities are funded in full. 
The Debt Facilities shall be funded by wire transfer to:

 

ABA
No:     043000261

Swift Code: MELNUS3P

Bank Name:  Mellon Bank, Pittsburgh, PA

Address:    500 Ross Street

Pittsburgh,
PA

Beneficiary:     
Huntsman International LLC

Account No: 021-6987

 

3.             Effective Date.

 

The “Effective Date” for this Agreement shall be the date on which
Huntsman has received immediately available funds in the amount of the
Settlement Payments and principal amount of the Debt Facilities.

 

3

 

4.             Dismissal.

 

On the Effective Date, after Huntsman has received immediately
available funds in the amounts due under paragraphs 1 and 2 herein, the Parties
shall execute and cause to be filed with the Court a Stipulation and [Proposed]
Order of Dismissal With Prejudice in the form attached hereto as Exhibit C,
and the Parties shall request that the jury be dismissed.

 

5.             Releases Among the Parties.

 

(a)           Effective upon
the Effective Date, Huntsman, on its own behalf, and on behalf of its
affiliates, heirs, executors, advisors, parents, subsidiaries, stockholders,
directors, employees, officers, administrators, successors, custodians, agents,
representatives, attorneys, servants, auditors, partners, insurers and assigns
(the “Huntsman Releasors”) hereby release, discharge and dismiss any and all
claims, actions, causes of action, suits, liabilities, debts, dues, sums of
money, accounts, reckonings, bonds, bills, specialties, covenants, contracts,
controversies, agreements, promises, variances, trespasses, damages, judgments,
extents, executions, expenses, losses and demands whatsoever in law, and in
equity or otherwise, whether presently known or unknown, accrued or not
accrued, foreseen or unforeseen, matured or not matured (“Claims”), which the
Huntsman Releasors ever had, now have or hereafter can, shall or may have
against the Lenders and the Lenders’ current or former respective advisors,
agents, servants, attorneys, auditors, officers, directors, employees,
partners, parents, subsidiaries, affiliates, insurers, stockholders, heirs,
executors, administrators, successors, custodians, representatives and assigns
(the “Lender Releasees”) for, upon, or by reason of any matter, cause or thing
whatsoever from the beginning of the world to the Effective Date, including
without limitation any Claims that were or could have been asserted in the
Litigation.  This release does 

 

4

 

not include and does not
release the Lender Releasees from (a) any obligations or Claims under this
Agreement or the Debt Facilities, or (b) any obligations under any other
agreements between the Parties in effect on the Effective Date or any Claims
under such other agreements that are based on actions taken or not taken by a
Lender Releasee after the Effective Date.  Such release by the Huntsman Releasors shall
be expressly conditioned upon the receipt of the payments required under
paragraphs 1 and 2 of this Agreement.

 

(b)           Effective upon
the Effective Date, the Lenders, on their own behalf, and on behalf of their affiliates,
heirs, executors, advisors, parents, subsidiaries, stockholders, directors,
employees, officers, administrators, successors, custodians, agents,
representatives, attorneys, servants, auditors, partners, insurers and assigns
(the “Lender Releasors”) hereby release, discharge and dismiss any Claims which
the Lender Releasors ever had, now have or hereafter can, shall or may have
against Huntsman and Huntsman’s current or former respective advisors, agents,
servants, attorneys, auditors, officers, directors, employees, partners,
parents, subsidiaries, affiliates, insurers, stockholders, heirs, executors,
administrators, successors, custodians, representatives and assigns (the “Huntsman
Releasees”) for, upon, or by reason of any matter, cause or thing whatsoever
from the beginning of the world to the Effective Date, including without
limitation any Claims that were or could have been asserted in the
Litigation.  This release does not
include and does not release the Huntsman Releasees from (a) any obligations
or Claims under this Agreement or the Debt Facilities or (b) any
obligations under any other agreements between the Parties in effect on the
Effective Date or any Claims under such other agreements that are based on
actions taken or not taken by a Huntsman Releasee after

 

5

 

the Effective Date.  Such release by the Lender Releasors shall be
expressly conditioned upon dismissal with prejudice of the Litigation.

 

(c)           To ensure that
the releases contained in sub-paragraphs (a) and (b) above are fully
enforced in accordance with their terms, the Parties acknowledge that each of
them is familiar with Section 1542 of the Civil Code of California and
hereby expressly, knowingly and voluntarily waive and relinquish, to the
fullest extent permitted by law, the provisions, protections, rights and
benefits afforded by that Section, which provides as follows:

 

“A general release does not
extend to claims which the creditor does not know or suspect to exist in his
favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.”

 

Huntsman and the Lenders also hereby expressly, knowingly and
voluntarily waive and relinquish all provisions, protections, rights and
benefits they may have under comparable or similar statutes and principles of
common law in any jurisdiction.

 

6.             Covenant Not to Sue.

 

Huntsman covenants, on behalf of itself and the Huntsman Releasors, and
each Lender covenants, on behalf of itself and its respective Lender Releasors,
not to bring or continue any Claim released in paragraph 5 before any court,
arbitrator or other tribunal in any jurisdiction.  Any Party, and any other entity or person
released by paragraph 5, may plead this Agreement as a complete bar to any
Claim brought in derogation of this covenant not to sue.

 

7.             Indemnification.

 

(a)           Effective upon
the Effective Date, Huntsman shall defend, indemnify and hold harmless the
Lender Releasees from the Claims released in paragraph 5(a) above,
regardless of whether brought by Huntsman or by another Huntsman Releasor, and
for any attorneys’ fees,

 

6

 

costs or expenses incurred
in defending or responding to such Claims to the extent asserted after the
Effective Date.

 

(b)           Effective upon
the Effective Date, the Lenders shall defend, indemnify and hold harmless the
Huntsman Releasees from the Claims released in paragraph 5(b) above,
regardless of whether brought by either or both Lenders or by another Lender
Releasor, and for any attorneys’ fees, costs or expenses incurred in defending
or responding to such Claims to the extent asserted after the Effective Date..

 

8.             Partial Release of the
Hexion and Apollo Releasees.

 

The Lenders hereby release Hexion Specialty Chemicals, Inc.,
Hexion LLC, Nimbus Merger Sub Inc. and Craig O. Morrison (the “Hexion Releasees”)
and Apollo Investment Fund IV, L.P., Apollo Overseas Partners IV, L.P., Apollo
Investment Fund V, L.P., Apollo Overseas Partners V, L.P., Apollo Netherlands
Partners V(A), L.P., Apollo Netherlands Partners V(B), L.P., Apollo German
Partners V GmbH & Co. KG, Apollo Investment Fund VI, L.P., Apollo
Overseas Partners VI, L.P., Apollo Overseas Partners (Delaware) VI, L.P.,
Apollo Overseas Partners (Delaware 892) VI, L.P., Apollo Overseas Partners
(Germany) VI, L.P., Apollo Advisors, IV, L.P., Apollo Management IV, L.P.,
Apollo Advisors, V, L.P., Apollo Management V, L.P., Apollo Advisors, VI, L.P.,
Apollo Management VI, L.P., Apollo Management , L.P., Apollo Global Management,
LLC, Leon Black and Joshua J. Harris (the “Apollo Releasees”) from any and all
liability that the Hexion Releasees or the Apollo Releasees may have to the
Lenders that in any way relates to or arises out of any claims made by Huntsman
against the Lenders, provided that, notwithstanding the foregoing, the Hexion
Releasees and the Apollo Releasees shall not be (and are not) released from:

 

7

 

(a) Any obligation to indemnify the Lenders for the legal fees and
costs that the Lenders have incurred in connection with the Litigation or any
other litigation relating to the facts and transactions at issue in this
Litigation, including but not limited to the litigations entitled Hexion
Specialty Chemicals, Inc., Hexion LLC and Nimbus Merger Sub Inc. v. Credit
Suisse, Cayman Islands Branch, Credit Suisse Securities (USA) LLC, Deutsche
Bank AG Cayman Islands Branch, Deutsche Bank AG New York Branch, Deutsche Bank
Securities Inc., and Deutsche Bank Trust Company Americas, Index No. 114552/08
(New York Supreme Court, New York County) and Hexion Specialty Chemicals, Inc.;
Nimbus Merger Sub Inc.; Apollo Investment Fund IV, L.P.; Apollo Overseas
Partners IV, L.P.; Apollo Advisors IV, L.P.; Apollo Management IV, L.P.; Apollo
Investment Fund V, L.P.; Apollo Overseas Partners V, L.P.; Apollo Netherlands
Partners V(A), L.P.; Apollo Netherlands Partners V(B), L.P.; Apollo German
Partners V GmbH & Co. Kg; Apollo Advisors V, L.P.; Apollo Management
V, L.P.; Apollo Investment Fund VI, L.P.; Apollo Overseas Partners VI, L.P.;
Apollo Overseas Partners (Delaware) VI, L.P.; Apollo Overseas Partners
(Delaware 892) VI, L.P.; Apollo Overseas Partners (Germany) VI, L.P.; Apollo
Advisors VI, L.P.; Apollo Management VI, L.P.; Apollo Management, L.P.; and
Apollo Global Management, LLC v. Huntsman Corp., C.A. No. 3841-VCL
(Court of Chancery, Delaware); and

 

(b) any obligation to indemnify the Lenders for Huntsman’s
attorneys’ fees and costs in this Litigation that the Lenders have agreed to
reimburse to Huntsman under this Agreement, provided that
if a Hexion Releasee or an Apollo Releasee would be entitled, under the Apollo
Settlement Agreement dated December 14, 2008, to recover from Huntsman any
amount paid to the Lenders pursuant to such obligation, then such obligation to
indemnify the 

 

8

 

Lenders for amounts described in this
paragraph 8(b) shall be released, but only to the extent of the recovery
from Huntsman to which such Hexion Releasee or Apollo Releasee would be
entitled.

 

9.             Representations and
Warranties.

 

(a)           Huntsman hereby
represents and warrants to the Lenders as follows in each case with respect to
itself and its affiliates:  Huntsman has
all requisite power and authority to execute and deliver this Agreement and to
perform its obligations hereunder.  Any
person signing this Agreement on behalf of Huntsman has been duly authorized by
Huntsman to do so.  No other consent,
approval or authorization of any person is required in connection with the
execution, delivery or performance by Huntsman of this Agreement.  Huntsman has not sold, assigned, transferred
or otherwise disposed of any of the Claims or rights that are the subject of
this Agreement.  The execution and
delivery of this Agreement has been duly authorized by all necessary corporate
action on the part of Huntsman, and this Agreement constitutes a legal, valid
and binding obligation of Huntsman enforceable against Huntsman in accordance
with its terms, except as such enforceability may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally and (ii) general
principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law). 
The execution, delivery and performance by Huntsman of this Agreement
and the performance by Huntsman of its obligations hereunder will not (i) violate,
result in any breach of, or constitute a default under (with or without notice
or lapse of time or both), or result in the termination of or acceleration of
performance required by, or result in a right of termination or acceleration
under, any agreement, indenture, mortgage, 

 

9

 

deed of trust, loan, bond, lease, purchase or
credit agreement to which Huntsman is bound or its corporate charter or
by-laws, or any other agreement or instrument to which Huntsman or its
respective properties or assets are bound, or (ii) result in a breach of
any of the terms, conditions or provisions of any order, judgment, decree, or
ruling of any court, arbitrator or governmental authority applicable to
Huntsman or any of its subsidiaries.

 

(b)           Each Lender
hereby represents and warrants to Huntsman as follows in each case with respect
to itself and its affiliates:  Each
Lender has all requisite power and authority to execute and deliver this
Agreement and to perform its obligations hereunder.  Any person signing this Agreement on behalf
of any Lender has been duly authorized by such Lender to do so.  No other consent, approval or authorization of
any person is required in connection with the execution, delivery or performance
by any Lender of this Agreement.  Each
Lender has not sold, assigned, transferred or otherwise disposed of any of the
Claims or rights that are the subject of this Agreement.  The execution and delivery of this Agreement
has been duly authorized by all necessary corporate action on the part of each
Lender, and this Agreement constitutes a legal, valid and binding obligation of
each Lender enforceable against that Lender in accordance with its terms,
except as such enforceability may be limited by (i) applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally and (ii) general principles of
equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law).  The execution,
delivery and performance by each Lender of this Agreement and the performance
by each Lender of its obligations hereunder will not (i) violate, result
in any breach of, or constitute a default under (with or without notice or
lapse of time or both), or result in the termination of or 

 

10

 

acceleration of performance required by, or
result in a right of termination or acceleration under, any agreement,
indenture, mortgage, deed of trust, loan, bond, lease, purchase or credit
agreement to which that Lender is bound or its corporate charter or by-laws, or
any other agreement or instrument to which that Lender or its respective
properties or assets are bound, or (ii) result in a breach of any of the
terms, conditions or provisions of any order, judgment, decree, or ruling of
any court, arbitrator or governmental authority applicable to that Lender or
any of its subsidiaries.

 

10.           Choice of Law; Waiver of
Right to Jury Trial.

 

This Agreement shall be governed by and construed in accordance with
the laws of the State of Texas for contracts entered into and performed within
the State without regard to conflicts of law principles.  Any action for breach or specific performance
of this Agreement shall be brought exclusively in the Ninth District Court of
Montgomery County, Texas.  THE PARTIES AGREE TO WAIVE THEIR RIGHT TO TRIAL BY JURY WITH RESPECT TO
DISPUTES UNDER THIS AGREEMENT.

 

The law governing the Debt Facilities shall be as specified in the Debt
Facilities agreements.  After the receipt
of all payments required under this Agreement, any suit or litigation arising
out of the Debt Facilities shall thereafter be governed by the forum selection
provisions of the Debt Facilities agreements, and such provisions shall take
precedence over this provision in any dispute arising out of the Debt
Facilities.

 

Notwithstanding anything in the preceding two paragraphs, the
provisions of paragraph 8 of this Agreement shall be governed by and construed
in accordance with the laws 

 

11

 

of the State of New York for contracts
entered into and performed within the State without regard to conflicts of law
principles.

 

11.           Compromise; No Admission of
Liability.

 

This Agreement constitutes a compromise of matters that are in dispute
between the Parties.  Neither the
execution of this Agreement nor any acts undertaken pursuant to this Agreement
shall be construed as an admission or evidence of any liability or wrongdoing
whatsoever on the part of any party, which liability or wrongdoing is hereby
expressly denied and disclaimed by every party. 
Neither this Agreement, nor the fact of its execution, nor any of its
provisions, shall be offered or received in evidence in any action or
proceeding of any nature or otherwise referred to or used in any manner in any
court or other tribunal, except in a proceeding to enforce the terms of the
Settlement.

 

12.           Disclosures;
Confidentiality.

 

Huntsman’s
press release with respect to the settlement of the Litigation shall be
substantially in the form of Exhibit D hereto, and the Lenders’ press
release with respect to the settlement of the Litigation shall be substantially
in the form of Exhibit E hereto (the “Press Releases”).

 

Other than the specific information contained in the Press Releases,
the Parties agree to maintain as confidential all information related to the
negotiation of this Agreement and agree that no Party shall disparage any other
Party in connection with the facts and transactions at issue in this
Litigation.

 

12

 

13.           Integration.

 

This Agreement, the Debt Facilities agreements, and related documents
constitute the entire agreement of the Parties, and supersede any and all prior
statements, representations, promises or other agreements, written or oral,
with respect to the subject matter of this Agreement.  This Agreement cannot be terminated,
modified, amended or changed in any respect orally or by the conduct of the
Parties.  Any termination, amendment,
modification or change of this Agreement may be made only by a writing signed
by all Parties or their duly authorized representatives.

 

14.           Successors.

 

This Agreement shall be binding upon and inure to the benefit of the
Parties hereto and their respective heirs, successors and assigns, and upon any
corporation or other entity into or with which any Party hereto may merge,
combine or consolidate.

 

15.           Counterparts.

 

This Agreement may be executed in two or more counterparts, which
together shall constitute one instrument.

 

16.           Notices.

 

All notices under this Agreement shall be in writing and will be deemed
to have been duly delivered when delivered by hand or sent by facsimile to, or
when received from a reputable overnight delivery service at, the appropriate
facsimile numbers or addresses set forth below (or to or at such other
facsimile numbers or addresses as may be designated by a notice delivered in
accordance with the foregoing):

 

13

 

if to CS

 

Credit Suisse Securities
(USA) LLC

One Madison Avenue

New York, NY 10010

Attn:  R. Colby Allsbrook

Facsimile: (646) 424 - 9469

 

if to DB:

 

Deutsche Bank Securities
Inc.

60 Wall Street

New York, NY 10005

Attn:  Jeffrey Welch

Facsimile:  212-797-4561

 

if to DB or CS also send a copy to:

 

Cravath, Swaine &
Moore LLP

Worldwide Plaza

825 Eighth Avenue

New York, NY 10019-7475

Attn:  Richard W. Clary

Facsimile:  (212) 474-3700

 

if
to Huntsman:

 

Huntsman Corporation

500 Huntsman Way

Salt Lake City, UT 84108

Attn:  Samuel D. Scruggs

Facsimile: (801) 584-5782

 

with
a copy to:

 

Gibbs & Bruns LLP

1100 Louisiana

Suite 5300

Houston, Texas 77002

Attn:  Robin Gibbs

Facsimile:  (713) 750-0903

 

14

 

17.           Miscellaneous.

 

(a)  Each provision of this Agreement will be interpreted in such
manner as to be effective and valid, but if any provision of this Agreement
will be prohibited by applicable law or invalid, such provision will be
ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement.

 

(b)  The descriptive headings of any provisions of this Agreement
are inserted for convenience of reference only and do not constitute a part of
this Agreement.  All exhibits and
schedules referred to in this Agreement are fully incorporated into this
Agreement.

 

(c)  Each Party acknowledges and represents that in entering into
this Agreement and the Debt Facilities, it is not relying on any
representations, by or on behalf of any other Party, not expressly set forth in
this Agreement or in the Debt Facilities.

 

(d)  Each Party acknowledges and represents that it has reviewed
this Agreement, the Debt Facilities, and the exhibits and schedules to each
with that Party’s counsel, that each Party understands the terms of this
Agreement, the Debt Facilities and its exhibits and schedules, and that they
set forth the agreement of the Parties with respect to the subject matter
hereof.

 

(e)  Each Party and counsel to each Party have reviewed and
approved this Agreement, and, accordingly, any presumption or other rule of
construction that any ambiguities be resolved against the drafting Party shall
not be employed in the interpretation of this Agreement.

 

15

 

IN WITNESS WHEREOF, this Agreement has been executed by the Parties by
their duly authorized representatives signing below.

 

	
   

  	
  Huntsman
  Corporation

  
	
   

  	
   

  
	
   

  	
  /s/
  Peter R. Huntsman

  
	
   

  	
  By:
  

  	
  Peter
  R. Huntsman

  
	
   

  	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Credit
  Suisse Securities (USA) LLC

  
	
   

  	
   

  
	
   

  	
  /s/
  William Brenton

  
	
   

  	
  By:
  

  	
  William
  Brenton

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Deutsche
  Bank Securities Inc.

  
	
   

  	
   

  
	
   

  	
  /s/
  Kevin M. Sherlock

  
	
   

  	
  By:
  

  	
  Kevin
  M. Sherlock

  
	
   

  	
   

  	
  Managing
  Director

  
	
   

  	
   

  
	
   

  	
  /s/
  Martin Arzec

  
	
   

  	
  By:
  

  	
  Martin
  Arzec

  
	
   

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  
	
  Approved as to form:

  	
   

  
	
   

  	
   

  
	
  /s/ Kathy Patrick

  	
   

  
	
  Kathy Patrick

  	
   

  
	
  Attorney for Huntsman

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/
  Richard W. Clary

  	
   

  
	
  Richard
  W. Clary

  	
   

  
	
  Attorney
  for the Lenders

  	
   

  

 

16

 

Exhibit A

 

EXECUTION
COPY

 

FOURTH AMENDMENT TO CREDIT AGREEMENT

 

This FOURTH AMENDMENT TO
CREDIT AGREEMENT (this “Amendment”), dated as of June 22, 2009, is
entered into by and among Huntsman International LLC, a Delaware limited
liability company (the “Borrower”), Deutsche Bank AG New York Branch and
Credit Suisse, Cayman Islands Branch, in their capacities as lenders, and
Deutsche Bank AG New York Branch, as Administrative Agent (the “Administrative
Agent”) for the Lenders.  Terms used
herein and not otherwise defined herein shall have the same meanings as
specified in the Credit Agreement (as defined below).

 

RECITALS:

 

A.                                 The Borrower, the Lenders, the Agents and
the Administrative Agent have heretofore entered into that certain Credit
Agreement dated as of August 16, 2005 (as amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”).

 

B.                                   Of even date herewith, the Borrower,
Deutsche Bank AG New York Branch and Credit Suisse have entered into that
certain Settlement Agreement dated as of even date herewith in order to
effectuate the settlement of certain disputes among the parties thereto.

 

C.                                   The Borrower has requested that, pursuant
to Section 2.1(a)(ii) of the Credit Agreement, the Credit Agreement
be amended to issue a new tranche of Dollar denominated term loans thereunder
(the “Term C Loans”) in an amount equal to $500,000,000, on the terms
and subject to the conditions set forth in this Amendment and the Credit
Agreement as amended hereby.

 

D.                                  Each lender party hereto agrees to make
and fund Term C Loans (the “Term C Loan Lenders”) in an amount equal to
such Term C Loan Lender’s Term C Dollar Commitment, on the terms and subject to
the conditions set forth in this Amendment and the Credit Agreement as amended  thereby.  The proceeds of the Term C Loans may be used
by the Borrower for any purpose not expressly prohibited by the Credit
Agreement.

 

E.                                    The Term C Loans constitute, and are
intended to constitute, Secured Obligations as defined in the Collateral
Security Agreement and Secured Obligations as defined in the Pledge Agreement.

 

F.                                    This Amendment constitutes a Loan
Document and these Recitals shall be construed as part of this Amendment.

 

NOW, THEREFORE, in
consideration of the Recitals herein contained and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

 

SECTION 1                             Issuance of Term C Loans.

 

(a)           Subject
to the terms and conditions set forth herein, each Term C Loan Lender agrees to
make Term C Loans on the Fourth Amendment Effective Date to the Borrower in a
principal amount equal to such Term C Loan Lender’s Term C Dollar Commitment.

 

(b)           Each
Term C Loan Lender will make and fund Term C Loans on the Fourth Amendment
Effective Date by wire transfer of immediately available funds to an account
designated by the Borrower for such purpose. 
The commitments of the Term C Loan Lenders are several and not joint and
no such Term C Loan Lender will be responsible for any other Term C Loan Lender’s
failure to make its Term C Loans.

 

(c)           All
Term C Loans made on the Fourth Amendment Effective Date shall be Base Rate
Loans.

 

(d)           On
and after the Fourth Amendment Effective Date, each reference in the Credit
Agreement to “Term Loans” shall be deemed to include a reference to the Term C
Loans.

 

SECTION 2                             Amendments. As of the Fourth Amendment Effective
Date (as defined in Section 3 hereof), the Credit Agreement is
hereby amended as follows:

 

2.1.         The following defined terms in Section 1.1
of the Credit Agreement are hereby amended and restated in their entirety to
read as follows:

 

“Applicable Base Rate Margin” means at any
date, (i) with respect to Revolving Loans denominated in Dollars, the
applicable percentage set forth in the following table under the column
Applicable Base Rate Margin for Revolving Loans opposite the Most Recent
Leverage Ratio as of such date, (ii) with respect to Term C Dollar Loans,
1.25% and (iii) with respect to Term B Dollar Loans, the applicable
percentage set forth under the column Applicable Base Rate Margin for Term B
Dollar Loans opposite the Most Recent Senior Secured Leverage Ratio as of such
date:

 

	
  Most Recent

  Leverage Ratio

  	
   

  	
  Applicable Base Rate

  Margin for Revolving

  Loans

  	
   

  
	
  Less
  than or equal to 2.00 to 1

  	
   

  	
  0.25

  	
  %

  
	
  Greater
  than 2.00 to 1 but less than or equal to 2.50 to 1

  	
   

  	
  0.50

  	
  %

  
	
  Greater
  than 2.50 to 1

  	
   

  	
  0.75

  	
  %

  

 

2

 

	
  Most Recent

  Senior Secured Leverage Ratio

  	
   

  	
  Applicable Base Rate

  Margin for Term B

  Dollar Loans

  	
   

  
	
  Less
  than or equal to 2.25 to 1

  	
   

  	
  0.50

  	
  %

  
	
  Greater
  than 2.25 to 1

  	
   

  	
  0.75

  	
  %

  

 

“Applicable Eurocurrency Margin” means at any
date, (i) with respect to Term B Dollar Loans, the applicable percentage
set forth in the following table under the column Applicable Eurocurrency
Margin for Term B Dollar Loans opposite the Most Recent Senior Secured Leverage
Ratio on such date, (ii) with respect to Term C Dollar Loans, 2.25% and (iii) with
respect to Revolving Loans, the applicable percentage set forth in the
following table under the column Applicable Eurocurrency Margin for Revolving
Loans opposite the Most Recent Leverage Ratio on such date:

 

	
  Most
  Recent

  Leverage Ratio

  	
   

  	
  Applicable

  Eurocurrency Margin for

  Revolving Loans

  	
   

  
	
  Less
  than or equal to 2.00 to 1

  	
   

  	
  1.25

  	
  %

  
	
  Greater
  than 2.00 to 1 but less than or equal to 2.50 to 1

  	
   

  	
  1.50

  	
  %

  
	
  Greater
  than 2.50 to 1

  	
   

  	
  1.75

  	
  %

  

 

	
  Most Recent

  Senior Secured Leverage Ratio

  	
   

  	
  Applicable Eurocurrency

  Margin for Term B

  Dollar Loans

  	
   

  
	
  Less
  than or equal to 2.25 to 1

  	
   

  	
  1.50

  	
  %

  
	
  Greater
  than 2.25 to 1

  	
   

  	
  1.75

  	
  %

  

 

“Interest Payment Date” means (i) as to
any Base Rate Loan, each Quarterly Payment Date to occur while such Loan is
outstanding, (ii) as to any Eurocurrency Loan having an Interest Period of
three months or less, the last day of the Interest Period applicable thereto
and (iii) as to any Eurocurrency Loan having an Interest Period longer
than three months, each three (3) month anniversary of the first day of the
Interest Period applicable thereto and the last day of the Interest Period
applicable thereto; provided, however, that, in addition to the
foregoing, each of (A) the Revolver Termination Date, (B) the Term B
Loan Maturity Date and (C) the Term C Loan 

 

3

 

Maturity Date shall be deemed
to be an “Interest Payment Date” with respect to any interest which is then
accrued hereunder for such Loan.

 

“Loan” means any Term B Dollar Loan, Term C Dollar Loan, Swing
Line Loan or Revolving Loan, and “Loans” means all such Loans, collectively.

 

“Term Note”
and “Term Notes” means the Term C Dollar Notes that evidence the Term C
Dollar Loans and the notes provided for in Section 2.2 that
evidence indebtedness under the Term Facilities, collectively.

 

2.2.         The following defined terms are added to Section 1.1
of the Credit Agreement where alphabetically appropriate:

 

“Determination Date”
has the meaning assigned to that term in Section 12.23.

 

“Fourth Amendment”
means the Fourth Amendment to this Agreement dated as of June 22, 2009.

 

“Fourth Amendment
Effective Date” has the meaning assigned to that term in the Fourth
Amendment.

 

“Minimum Floor Amount”
has the meaning assigned to that term in Section 12.23.

 

“Refinanced Facility
Debt” has the meaning assigned to that term in Section 12.23(a).

 

“Scheduled Term C
Dollar Repayments” means, with respect to the principal payments on the
Term C Dollar Loans for each date set forth below, that percentage of the
aggregate outstanding principal amount of Term C Dollar Loans on the Fourth
Amendment Effective Date set forth opposite thereto:

 

Scheduled Term C Dollar
Repayments

 

	
  Date

  	
   

  	
  Principal
  Payment

  
	
   

  	
   

  	
   

  
	
  March 31, 2010

  	
   

  	
  1% of the aggregate principal amount as of the
  Fourth Amendment Effective Date

  
	
   

  	
   

  	
   

  
	
  March 31,
  2011

  	
   

  	
  1% of the
  aggregate principal amount as of the Fourth Amendment Effective Date

  
	
   

  	
   

  	
   

  
	
  March 31,
  2012

  	
   

  	
  1% of the
  aggregate principal amount as of the Fourth Amendment Effective Date

  
	
   

  	
   

  	
   

  
	
  March 31,
  2013

  	
   

  	
  1% of the
  aggregate principal amount as of the Fourth Amendment Effective Date

  

 

4

 

	
  Date

  	
   

  	
  Principal
  Payment

  
	
   

  	
   

  	
   

  
	
  March 31,
  2014

  	
   

  	
  1% of the
  aggregate principal amount as of the Fourth Amendment Effective Date

  
	
   

  	
   

  	
   

  
	
  March 31,
  2015

  	
   

  	
  1% of the
  aggregate principal amount as of the Fourth Amendment Effective Date

  
	
   

  	
   

  	
   

  
	
  March 31,
  2016

  	
   

  	
  1% of the
  aggregate principal amount as of the Fourth Amendment Effective Date

  
	
   

  	
   

  	
   

  
	
  Term C Loan
  Maturity Date

  	
   

  	
  100% of the
  aggregate principal amount of Term C Dollar Loans outstanding on the Term C
  Loan Maturity Date.

  

 

“Term C Dollar Commitment” means, with respect
to any Term C Dollar Lender signatory to the Fourth Amendment, the principal
amount set forth opposite such Lender’s name on Schedule 1.1(a) hereto
under the caption “Amount of Term C Dollar Commitment”, as such commitment may
be adjusted from time to time pursuant to this Agreement or increased pursuant
to Section 2.1(a)(ii), and “Term C Dollar Commitments” means such
commitments collectively, which commitments equal $500,000,000 in the aggregate
on the Fourth Amendment Effective Date.

 

“Term C Dollar Facility” means the credit
facility under this Agreement evidenced by the Term C Dollar Commitments and
the Term C Dollar Loans.

 

“Term C Dollar Lender” means any Lender which
has a Term C Dollar Commitment or has made (or a portion thereof) a Term C
Dollar Loan.

 

“Term C Dollar Loan” and “Term C Dollar
Loans” have the meanings assigned to those terms in Section 2.1(d).

 

“Term C Loan Maturity Date” means June 30, 2016.

 

2.3.         The following is added as Section 2.1(d)
to the Credit Agreement:

 

“(d)         Term C Loans.  Subject to the terms and conditions hereof
and in the Fourth Amendment, each Term C Dollar Lender agrees to make a loan in
Dollars (the “Term C Dollar Loans”) to the Borrower on the Fourth
Amendment Effective Date in the aggregate principal amount of such Lender’s
Term C Dollar Commitment.  No amount of a
Term C Dollar Loan which is repaid or prepaid by the Borrower may be reborrowed
hereunder.  The Term C Dollar Loans shall
be denominated in Dollars, shall be maintained as and/or converted into Base
Rate Loans or Eurocurrency Loans or a combination thereof, 

 

5

 

provided, that all Term C Dollar Loans made by
the Term C Dollar Lenders pursuant to the same Borrowing shall, unless
otherwise specifically provided herein, consist entirely of Term C Dollar Loans
of the same Type.”

 

2.4.         The
following is added as Section 4.2(d) to the Credit Agreement:

 

“(d)         Reduction of Term
C Dollar Commitments. The Term C Dollar Commitments shall terminate on the
Fourth Amendment Effective Date after giving effect to the Term C Dollar Loans
on such date.”

 

2.5.         The
following is added to the end of Section 4.4(b) of the Credit
Agreement:

 

“Payments to be
made pursuant to this Section 4.4(b) with respect to Term C Dollar
Loans shall be paid in Dollars.”

 

2.6.         The
following is added as Section 4.5(d) to the Credit Agreement:

 

“(d)         Prepayment
of Term C Dollar Loans. 
Notwithstanding anything to the contrary contained in this Agreement,
including without limitation, any provision of Article IV hereof,
the Borrower shall have the right to prepay in whole (but not in part) the
outstanding Term B Dollar Loans without any obligation to prepay any portion of
the Term C Dollar Loans.”

 

2.7.         Article XII of the Credit Agreement is amended to add the following Section 12.23:

 

“12.23    Term
C Dollar Lenders.

 

Each Term C Dollar
Lender agrees that upon the earlier to occur of (x) the Term B Loan
Maturity Date and (y) the date that all Term B Dollar Loans are prepaid or
repaid in full (for any reason) (such earlier date, the “Determination Date”):

 

(a)           Without limitation of any of the
terms of the Loan Documents or any provisions thereof, the Borrower shall have
the right in its sole discretion at any time to refinance or replace all of the
Facilities outstanding immediately prior to the Determination Date under this
Agreement (other than the Term C Dollar Facility) (collectively, the “Refinanced
Facility Debt”) pursuant to separate credit documentation.  In connection therewith:

 

(i)            all collateral, guarantees and other
credit support that secures, guarantees or otherwise supports the Term C Dollar
Facility pursuant to the Loan Documents (including, without limitation, the
Security Documents) shall be available (on a pari  passu basis in
payment and lien priority, and in any event on the same basis as the Facilities
are afforded under the Loan Documents as of the Fourth Amendment Effective
Date) to secure, guarantee or otherwise support any and all such Refinanced
Facility Debt, together with any other senior secured indebtedness of the
Borrower (including, without limitation, one or more 

 

6

 

revolving and/or term
credit facilities), in an aggregate principal amount not to exceed the greater
of (A) the principal amount of Refinanced Facility Debt outstanding on the
Determination Date (or its equivalent in any other currency) and (B) $2,100,000,000
(or its equivalent in any other currency) (such greater amount, the “Minimum
Floor Amount”), as the Minimum Floor Amount may be reduced after the
Determination Date pursuant to the last sentence of the definition of “Permitted
Refinancing Indebtedness”; and

 

(ii)           the Loan Documents shall be amended
and other documents and agreements will be entered into (such amendments,
documents and agreements solely requiring the signatures of the Administrative
Agent and the Borrower to be effective) in order to effectuate the foregoing
and to make any necessary conforming changes.

 

(b)           Notwithstanding anything to the
contrary contained in Section 4.4(c)(i), no prepayment of proceeds
from a Recovery Event shall be required pursuant to such Section to the extent
that (x) no Event of Default or Unmatured Event of Default then exists and
(y) the Borrower delivers a certificate to the Administrative Agent on or
prior to such date stating that an amount equal to the proceeds of such
Recovery Event is expected to be used to purchase assets used or to be used in
the businesses referred to in Section 8.9 within 360 days following
the date of receipt of such proceeds (which certificate shall set forth the
estimates of the proceeds to be so expended); provided that (1) if all or
any portion of such proceeds not so applied to such prepayment are not so used
(or contractually committed to be used) within such 360 day period as provided
above, such remaining portion shall be applied on the last day of the period or
such earlier date as the Borrower is obligated to make an offer to purchase
Senior Secured Notes (2010) due to such Recovery Event as a mandatory repayment
of principal of outstanding Loans as provided in Section 4.4(c)(i) and
(2) if all or any portion of such proceeds result from a Recovery Event
involving Collateral owned by the Borrower or a Domestic Subsidiary (other than
the Capital Stock of a Foreign Subsidiary), then such proceeds shall be
required to be reinvested in assets located in the United States constituting
Collateral (to the extent not used to repay Loans pursuant to Section 4.4(c)(i)).

 

(c)           Article IX shall no
longer apply for any purpose under this Agreement (including, without
limitation, for the purposes of Section 2.1(a)(ii), Section 7.2(b),
Section 8.7(j) and Section 8.7(m)).

 

(d)           “Permitted Refinancing
Indebtedness” shall mean, with respect to any Indebtedness, any
Indebtedness refinancing, extending, renewing or refunding such Indebtedness;
provided, however, that any such refinancing Indebtedness shall (i) be
issued by the same obligor as the Indebtedness being so refinanced (or by Huntsman
Corporation or a Parent Company) and be on terms, taken as a whole, not more
restrictive than the terms of the documents governing the Indebtedness being so
refinanced; (ii) if the Indebtedness being so refinanced is subordinated
to the Obligations, be subordinated to the Obligations on substantially the
same terms (or on terms at least as favorable to the Lenders) as Indebtedness
being so refinanced; (iii) be in a principal amount (as 

 

7

 

determined as of the date
of the incurrence of such refinancing Indebtedness in accordance with GAAP) not
exceeding the principal amount of the Indebtedness being refinanced on such
date plus any call premiums, prepayment fees, costs and expenses paid in
connection with such refinancing; (iv) not have a Weighted Average Life to
Maturity less than the Indebtedness being refinanced; (v) if the
Indebtedness being refinanced is Public Notes, be unsecured Indebtedness
maturing no earlier than the then latest Term Maturity Date; and (vi) be
upon terms and subject to documentation which is in form and substance
reasonably satisfactory in all material respects to the Administrative
Agent.  Notwithstanding clauses (ii)
and (v) above, after the Determination Date, any such Indebtedness
refinancing, extending, renewing or refunding the Senior Subordinated Notes
(2013), the Senior Subordinated Notes (2014), the Senior Subordinated Notes
(2015), any similar senior subordinated notes, any senior unsecured notes and
any senior secured notes may be senior second-lien notes, senior unsecured
notes and, to the extent capacity exists pursuant to the Minimum Floor Amount,
senior first-lien secured notes (provided that the Minimum Floor Amount shall
be reduced after the Determination Date by the aggregate principal amount of
any senior first-lien secured Indebtedness incurred pursuant to this sentence,
unless such Permitted Refinancing Indebtedness refinances, extends, renews or
refunds senior first-lien secured Indebtedness).

 

2.8.         Schedule 1.1(a) to the Credit Agreement is amended to
add the following to the end thereof:

 

	
  Term C Dollar Lender

  	
   

  	
  Amount
  of Term C Dollar

  Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Deutsche Bank AG New York Branch

  	
   

  	
  $

  	
  250,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Credit Suisse, Cayman Islands Branch

  	
   

  	
  $

  	
  250,000,000

  	
   

  

 

SECTION 3                             Conditions to
Effectiveness of the Issuance of the Term C Loans. 
The provisions of Section 1 and Section 2 of
this Amendment shall become effective upon the date of the satisfaction of all
of the conditions set forth in this Section 3 (the “Fourth
Amendment Effective Date”), with any documents delivered to the
Administrative Agent dated the Fourth Amendment Effective Date unless otherwise
noted:

 

3.1.         Proper
Execution and Delivery of Amendment.  Borrower,
each Term C Loan Lender and the Administrative Agent shall have duly executed
and delivered to the Administrative Agent this Amendment.

 

3.2.         Delivery
of Credit Party Documents.

 

(a)           Execution
and Delivery of Officer’s Certificate. 
The Administrative Agent shall have received a certificate of a
Responsible Officer of the Borrower in the form of Exhibit A
attached hereto.

 

8

 

(b)           Notes.  The Borrower shall have duly executed and
delivered to the Administrative Agent notes in the form of Exhibit B
attached hereto (the “Term C Dollar Notes”) payable to each applicable
Term C Loan Lender which has requested a note in the amount of its respective
Term C Loan, all of which shall be in full force and effect;

 

(c)           Representations
and Warranties.  The representations
and warranties of the Borrower and the other Credit Parties contained in this
Amendment and the other Loan Documents shall be true and correct in all
material respects as of the Fourth Amendment Effective Date, with the same
effect as though made on such date (except to the extent expressly made as of a
specified date, in which event such representation and warranty is true and
correct in all material respects as of such specified date).

 

(d)           No
Defaults. No Unmatured Event of Default or Event of Default under the
Credit Agreement or this Amendment shall have occurred and be continuing or
would occur as a result of the incurrence of the Term C Loans or the use of
proceeds therefrom.

 

(e)           Approvals.  All necessary governmental and third party
approvals in connection with this Amendment and the transactions contemplated
hereby and otherwise referred to herein shall have been obtained and remain in
effect, and all applicable waiting periods shall have expired without any
action being taken by any competent authority which restrains, prevents or
imposes materially adverse conditions upon the consummation of all or any part
of this Amendment or the transactions contemplated hereby and otherwise
referred to herein except for those approvals of non-Governmental Authorities
under contracts which are not material and which are not required to be
delivered at the closing thereof. 
Additionally, there shall not exist any judgment, order, injunction or
other restraint issued or filed or a hearing seeking injunctive relief or other
restraint pending or notified prohibiting or imposing material adverse
conditions upon all or any part of this Amendment or the transactions
contemplated hereby.

 

(f)            Compliance
Certificate.  The Borrower shall have
delivered to the Administrative Agent a duly executed Compliance Certificate in
the form attached hereto as Exhibit C for the immediately preceding
four full Fiscal Quarters giving pro forma effect to the Term C Loans hereunder
(prepared in good faith and in a manner and using such methodology which is
consistent with the most recent financial statements delivered pursuant to Section 7.1
of the Credit Agreement) and evidencing compliance with the covenant set forth
in Article IX of the Credit Agreement.

 

(g)           Opinion
of Counsel.  The Administrative Agent
shall have received from Vinson & Elkins L.L.P., special counsel to
the Borrower, an opinion in the form attached hereto as Exhibit D,
addressed to the Administrative Agent and each of the Term C Loan Lenders and
dated the Fourth Amendment Effective Date.

 

Each Term C Loan Lender
hereby agrees that by the funding of its Term C Loans, such Person approves of
and consents to each of the matters set forth in Section 3 which
must be approved by, or which must be satisfactory to, the Term C Loan Lenders.

 

9

 

SECTION 4                             References to and Effect
on the Credit Agreement.  On and after
the Fourth Amendment Effective Date each reference in the Credit Agreement to “this
Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each
reference to the Credit Agreement, as the case may be, in the Loan Documents
and all other documents (the “Ancillary Documents”) delivered in
connection with the Credit Agreement shall mean and be a reference to the
Credit Agreement as amended hereby.

 

Except as specifically
amended above, the Credit Agreement, and the other Loan Documents and all other
Ancillary Documents shall remain in full force and effect and are hereby
ratified and confirmed.

 

The execution, delivery
and effectiveness of this Amendment shall not, except as expressly provided
herein, operate as a waiver of any right, power or remedy of the Term C Loan
Lenders or the Administrative Agent under the Credit Agreement, the Loan
Documents or the Ancillary Documents.

 

SECTION 5                             Costs and Expenses. 
Notwithstanding anything to the contrary contained in the Credit
Agreement or any other Loan Document, each of the parties hereto agrees to pay
its own costs and expenses in connection with the negotiation, preparation,
printing, typing, reproduction, execution and delivery of this Amendment and
all other documents furnished pursuant hereto or in connection herewith,
including without limitation, the fees and out-of-pocket expenses of its
counsel, independent public accountants and other outside experts retained by
it in connection therewith and the Borrower shall not be responsible for such
costs and expenses of the other parties hereto.

 

SECTION 6                             Miscellaneous.

 

6.1.         Administrative Agent Acknowledgments. 
The Administrative Agent hereby acknowledges and confirms the following:

 

(a)           In
accordance with Section 2.1(a)(ii)(A) of the Credit Agreement, the
initial syndication of the Loans and Commitments with respect to the Credit
Agreement has heretofore occurred to the Administrative Agent’s satisfaction.

 

(b)           As
of the Fourth Amendment Effective Date, the Administrative Agent does not
require reaffirmations of or amendments to Security Documents in order for the
Borrower to comply with Section 2.1(a)(ii)(B) of the Credit
Agreement.

 

(c)           Based
on the information it has as of the date hereof, the Administrative Agent has
no reason to object to the terms and conditions of this Amendment and that
certain Note Purchase Agreement dated June 22, 2009 among the Borrower,
Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. and, in
each case, the transactions contemplated thereby.

 

(d)           The
Administrative Agent has received the Compliance Certificate delivered by the
Borrower herewith pursuant to Section 2.1(a)(ii)(A) of the Credit
Agreement and the form of such Compliance Certificate complies on its face with
such Section (subject to Section 11.4 of the Credit Agreement) and
the Administrative Agent has no reason to believe 

 

10

 

that such Compliance Certificate is not satisfactory in substance when
delivered hereunder.

 

6.2.         Tax
Treatment.  For federal income tax purposes, the Borrower
and each Term C Loan Lender that is a signatory hereto agree (i) the “issue
price” of such Term C Loan Lender’s Term C Loan for purposes of Section 1273
of the Code is the principal amount of such Term C Loan, and (ii) the Term
C Loan is not part of an “investment unit” for purposes of Treasury Regulation Section 1.1273-2.
Each Term C Loan Lender that is a signatory hereto acknowledges that it is
acting as principal in making the Term C Loan (and not as a bond house, broker,
or similar person acting in the capacity of an underwriter, placement agent, or
wholesaler), and each Term C Loan Lender agrees that it will not, and any
majority-owned affiliate will not, sell all or any portion of the Term C Loan
for 30 days following the date on which such loan is made.  Each Term C Lender that is a signatory hereto
agrees that it, and any majority-owned affiliate thereof, will file all federal
income tax returns (and all other income tax returns that follow federal income
tax principles) in a manner consistent with this Section 6.2 and
the Borrower shall not have any recourse against such Term C Loan Lender on the
basis of this Section 6.2, provided that such Term C Loan Lender
and any majority-owned affiliate thereof so files its tax returns and complies
with the 30-day requirement of the immediately preceding sentence. The Borrower
agrees to file all federal income tax returns (and all other income tax returns
that follow federal income tax principles) in a manner consistent with this Section 6.2,
and no Term C Loan Lender shall have any recourse against the Borrower on the
basis of this Section 6.2, provided that the Borrower so files its
tax returns.    For the avoidance of
doubt, this Section 6.2 is not intended to (1) affect any Term
C Loan Lender’s or any majority-owned affiliate’s financial accounting
reporting with respect to the Term C Loans, or (2) limit the ability of
any Term C Loan Lender or any majority-owned affiliate thereof that otherwise
utilizes “mark to market” accounting with respect to the Term C Loan for
Federal income tax purposes to mark the Term C Loan to market in a manner
consistent with its method of accounting. 
This Section 6.2 shall not apply to a Term C Loan Lender
that is a signatory hereto, or to any majority-owned affiliate thereof, unless
the Company provides to such Term C Loan Lender, within 30 days of the Fourth
Amendment Effective Date, a copy of an opinion of a nationally recognized
independent tax counsel, addressed to the Company and reasonably satisfactory
to the Term C Loan Lender (but not stating that the Term C Loan Lender is
entitled to rely on such opinion), stating that the foregoing tax treatment is
more likely than not correct for Federal income tax purposes.  This Section 6.2 shall not apply
to a Term C Loan Lender, or any majority-owned affiliate thereof, with respect
to tax returns filed by it with a particular taxing authority for any tax year
after the time such taxing authority proposes an adjustment challenging the tax
reporting position for any tax year required by this Section 6.2.  Notwithstanding Section 12.8 of
the Credit Agreement, this Section 6.2 shall apply only to a Term C
Loan Lender that is a signatory hereto and its majority-owned affiliates.

 

6.3.         Execution
in Counterparts.  This Amendment may be executed in one or more
counterparts, each of which, when executed and delivered, shall be deemed to be
an original and all of which counterparts, taken together, shall constitute but
one and the same document with the same force and effect as if the signatures
of all of the parties were on a single counterpart, and it shall not be
necessary in making proof of this Amendment to produce more than one (1) such
counterpart.  Delivery of an executed
signature page to this Amendment by telecopy shall be deemed to constitute
delivery of an originally executed signature page hereto.

 

11

 

6.4.         Governing
Law.  THIS AMENDMENT SHALL BE
DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR
ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS AND
DECISIONS OF SAID STATE.

 

6.5.         Headings. 
Headings used in this Amendment are for convenience of reference only
and shall not affect the construction of this Amendment.

 

6.6.         Integration. 
This Amendment, the other agreements and documents executed and
delivered pursuant to this Amendment and the Credit Agreement constitute the
entire agreement among the parties hereto with respect to the subject matter
hereof.

 

6.7.         Binding
Effect.  This Amendment shall be binding upon and
inure to the benefit of and be enforceable by the Borrower, the Administrative
Agent and the Term C Loan Lenders and their respective successors and
assigns.  Except as expressly set forth
to the contrary herein, this Amendment shall not be construed so as to confer
any right or benefit upon any Person other than the Borrower, the
Administrative Agent and the Term C Loan Lenders and their respective
successors and permitted assigns.

 

6.8.         Representations. 
As of the Fourth Amendment Effective Date, the Borrower represents and
warrants as follows:

 

(a)           The
Borrower (i) is duly organized, validly existing and in good standing (if
applicable) under the laws of the State of Delaware and (ii) has the power
and authority to execute and deliver this Amendment and to perform its
obligations hereunder.

 

(b)           The
Borrower has duly taken all corporate action necessary to authorize the
execution and delivery by it of this Amendment and to authorize the
consummation of the transactions contemplated hereby and the performance of its
obligations hereunder.  The Borrower has
duly executed and delivered this Amendment. 
This Amendment is the legal, valid and binding obligation of the
Borrower, enforceable against it in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency or similar laws of general
application relating to the enforcement of creditors’ rights.

 

[Signature Page Follows]

 

12

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed and delivered by
their duly authorized officers as of the day and year first above written.

 

	
   

  	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK AG NEW YORK

  BRANCH, as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Signature
Page to Huntsman International LLC

Fourth Amendment to Credit Agreement

 

 

	
   

  	
  DEUTSCHE BANK AG NEW YORK

  
	
   

  	
  BRANCH, as a Term C Loan Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CREDIT SUISSE, CAYMAN ISLANDS

  
	
   

  	
  BRANCH, as a Term C Loan Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Signature
Page to Huntsman International LLC

Fourth Amendment
to Credit Agreement

 

2

 

EXHIBIT A
TO

FOURTH
AMENDMENT TO THE

HUNTSMAN
INTERNATIONAL LLC

CREDIT
AGREEMENT

 

HUNTSMAN
INTERNATIONAL LLC

OFFICER’S
CERTIFICATE

 

Re:                               Fourth
Amendment to Credit Agreement dated as of June 22, 2009, among Huntsman
International LLC, a Delaware limited liability company (the “Borrower”),
Deutsche Bank AG New York Branch and Credit Suisse, Cayman Islands Branch, as
lenders, and Deutsche Bank AG New York Branch, as Administrative Agent (the “Administrative
Agent”) for the Lenders (the “Fourth Amendment”)

 

This Certificate is being
delivered pursuant to Section 3.2(a) of the Fourth Amendment,
with each capitalized term not defined herein having the meaning ascribed to it
in the Fourth Amendment.

 

I, the undersigned, a
Responsible Officer of the Borrower, do hereby certify on behalf of the
Borrower, in my capacity as an officer of the Borrower and not in my individual
capacity, that:

 

1.             After giving effect
to the Fourth Amendment, the representations and warranties set forth in Article VI
of the Credit Agreement and in other Loan Documents are true and correct in all
material respects as of the date hereof, except to the extent such
representations and warranties are expressly made as of a specific date, in
which event such representations and warranties are true and correct in all
material respects as of such specified date.

 

2.             After giving effect
to the Fourth Amendment, no Event of Default or Unmatured Event of Default has
occurred and is continuing or would occur as a result of the incurrence of the
Term C Dollar Loans or the use of proceeds therefrom.

 

3.             The conditions of Section 3
of the Fourth Amendment have been fully satisfied or waived (except that no
opinion is expressed as to the Administrative Agent’s or Term C Loan Lenders’
satisfaction with any document, instrument or other matter).

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the
undersigned has executed this Certificate as of the date first written above.

 

 

	
   

  	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

2

 

 

EXHIBIT B
TO

FOURTH
AMENDMENT TO THE

HUNTSMAN
INTERNATIONAL LLC

CREDIT
AGREEMENT

 

FORM OF

TERM C DOLLAR NOTE

 

	
  $                

  	
  New York, New
  York

  
	
   

  	
  June 23,
  2009

  

 

FOR VALUE
RECEIVED, the undersigned, Huntsman International LLC, a Delaware limited
liability company (“Borrower”), hereby unconditionally promises to pay
to the order of                                       
or its registered assigns (the “Lender”) at the office of                                           ,
located at                                           ,
in lawful money of the United States of America and in immediately available
funds, the principal amount of (a) TWO HUNDRED FIFTY MILLION DOLLARS
($250,000,000), or, if less, (b) the aggregate unpaid principal amount of
the Term C Dollar Loan made by the Lender to Borrower pursuant to Section 2.1(d) of
the Credit Agreement hereinafter referred to. 
The principal amount of the Term C Dollar Loans evidenced hereby shall
be payable in the amounts and at the times set forth in the Credit Agreement,
including, without limitation, such Lender’s Term C Dollar Loan Pro Rata Share
of the amounts specified in the definition of Scheduled Term C Dollar
Repayments, with any then outstanding principal amount of the Term C Dollar
Loan evidenced hereby being payable on the Term C Loan Maturity Date. Borrower
further agrees to pay interest in like money at such office on the unpaid
principal amount hereof from time to time outstanding at the applicable
interest rate per annum determined as provided in, and payable as specified in,
Articles III and IV of the Credit Agreement.

 

The holder of this
Term C Dollar Note is authorized to record the date, Type and amount of the
Term C Dollar Loan made by the Lender pursuant to Section 2.1 of
the Credit Agreement, each conversion thereof, the date of each interest rate
continuation pursuant to Section 2.6 of the Credit Agreement and
the principal amount subject thereto, the date and amount of each payment or
prepayment of principal hereof, and in the case of each Eurocurrency Loan, the
length of the Interest Period with respect thereto on the records of the
Lender, and any such recordation shall (in the absence of manifest error)
constitute prima facie evidence of the accuracy of the information endorsed;
provided, however, that the failure to make any such endorsement shall not
affect the obligations of Borrower in respect of the Term C Dollar Loan.

 

This Term C Dollar
Note is one of the notes referred to in Section 3.2(b) of the
Fourth Amendment to Credit Agreement dated as of June 22, 2009 (the “Fourth
Amendment”), among Borrower, Deutsche Bank AG New York Branch, as
Administrative Agent for the Lenders and Deutsche Bank AG New York Branch and
Credit Suisse, Cayman Islands Branch, as lenders, and is subject to the
provisions of the Fourth Amendment and of the Credit Agreement dated as of August 16,
2005 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Borrower, Deutsche Bank AG New York Branch, 

 

 

as Administrative Agent
for the Lenders, and the financial institutions signatory thereto, and is
subject to the provisions thereof, and is subject to optional and mandatory
prepayment in whole or in part as provided therein. Terms defined in the Credit
Agreement are used herein with their defined meanings unless otherwise defined
herein.

 

Upon the
occurrence and during the continuance of any one or more of the Events of
Default specified in the Credit Agreement, all amounts then remaining unpaid on
this Term C Dollar Note may become, or may be declared to be, immediately due
and payable, all as provided therein. All parties now and hereafter liable with
respect to this Term C Dollar Note, whether maker, principal, surety,
guarantor, endorser or otherwise, hereby waive presentment, demand, protest and
all other notices of any kind. THIS TERM C DOLLAR NOTE SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE
STATE OF NEW YORK.

 

 

	
   

  	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

2

 

EXHIBIT C
TO

FOURTH
AMENDMENT TO THE

HUNTSMAN
INTERNATIONAL LLC

CREDIT
AGREEMENT

 

FORM OF 

COMPLIANCE CERTIFICATE

 

The undersigned, a Responsible Financial Officer of
Huntsman International LLC, a Delaware limited liability company (“Borrower”),
does hereby certify that:

 

1.             This
Certificate is furnished pursuant to Section 2.1(a)(ii)(A) of
that certain Credit Agreement dated as of August 16, 2005 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Borrower, Deutsche Bank AG New York Branch, as Administrative Agent for
the Lenders, and the financial institutions signatory thereto and pursuant to Section 3.2(f) of
that certain Fourth Amendment to Credit Agreement dated as of June 22,
2009 among Borrower, Deutsche Bank AG New York Branch, as Administrative Agent
of the Lenders, and Deutsche Bank AG New York Branch and Credit Suisse, Cayman
Islands Branch, as lenders (the “Fourth Amendment”).  Unless otherwise defined herein, capitalized
terms used in this Certificate have the meanings assigned to those terms in the
Credit Agreement.

 

2.             The
following is a true and correct computation of the Secured Leverage Ratio found
in Section 9.1 of the Credit Agreement for the period of four full
Fiscal Quarters immediately preceding the incurrence of the Term C Dollar Loans
pursuant to the Fourth Amendment, giving pro forma effect to such incurrence:

 

Pro forma for the Period Ended March 31, 2009

($ Millions)

 

	
   

  	
   

  	
  Actual Q1 2009

  	
   

  	
  Pro forma Adjustments

  	
   

  	
  Pro Forma Q1 2009

  	
   

  
	
  Consolidated Debt that is secured

  	
   

  	
  1,735

  	
   

  	
  9A

  	
   

  	
  1,744

  	
   

  
	
  Consolidated EBITDA

  	
   

  	
  610

  	
   

  	
   

  	
   

  	
  610

  	
   

  
	
  Actual

  	
   

  	
  2.85

  	
   

  	
   

  	
   

  	
  2.86

  	
   

  
	
  Covenant

  	
   

  	
  3.75

  	
   

  	
   

  	
   

  	
  3.75

  	
   

  

 

	
  A Proforma Adjustments to Debt
  as follows:

  	
   

  	
   

  	
   

  
	
  - Additional Term Loans (Term
  Loan C)

  	
   

  	
  500

  	
   

  
	
  - Redemption of 11.625% Sr.
  Secured Notes (principal)

  	
   

  	
  (296

  	
  )

  
	
  - Cash (net of $8.6mm of est.
  call premiums)

  	
   

  	
  (195

  	
  )

  
	
  - Net

  	
   

  	
  9

  	
   

  

 

[signature page follows]

 

 

Witness my hand this         
day of June, 2009.

 

 

	
   

  	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

2

 

EXHIBIT D
TO

FOURTH
AMENDMENT TO THE

HUNTSMAN
INTERNATIONAL LLC

CREDIT
AGREEMENT

 

FORM OF 

LEGAL OPINION

OF VINSON & ELKINS LLP

 

See
attached.

 

 

Exhibit
B

 

 

 

HUNTSMAN INTERNATIONAL LLC

 

$600,000,000

 

51⁄2 % Senior Notes due 2016

 

 

 

NOTE PURCHASE AGREEMENT

 

 

 

Dated June 22, 2009

 

 

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  Authorization of Notes

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  Sale and Acceptance of Temporary Notes

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  Closing

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  Conditions to Closing

  	
  2

  
	
  Section 4.1

  	
  Conditions to Purchaser’s
  Obligations

  	
  2

  
	
  Section 4.2

  	
  Conditions to Company’s
  Obligations

  	
  3

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  Representations and Agreements of the Company

  	
  4

  
	
  Section 5.1

  	
  Organization; Power and
  Authority

  	
  4

  
	
  Section 5.2

  	
  Authorization, Etc

  	
  4

  
	
  Section 5.3

  	
  Compliance with Rulings,
  Other Instruments, Etc

  	
  4

  
	
  Section 5.4

  	
  Governmental
  Authorizations, Etc

  	
  5

  
	
  Section 5.5

  	
  Material Adverse Change

  	
  5

  
	
  Section 5.6

  	
  Exchange Act Filings

  	
  5

  
	
  Section 5.7

  	
  Exchange Default

  	
  5

  
	
  Section 5.8

  	
  Resale Activities

  	
  5

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  Representations and Agreements of the Purchasers

  	
  6

  
	
  Section 6.1

  	
  Power and Authority;
  Authorization

  	
  6

  
	
  Section 6.2

  	
  Accredited Investor Status

  	
  7

  
	
  Section 6.3

  	
  ERISA Status

  	
  7

  
	
  Section 6.4

  	
  Acknowledgements and
  Waiver

  	
  7

  
	
  Section 6.5

  	
  Matters Concerning the
  Securities

  	
  8

  
	
  Section 6.6

  	
  Consistent Tax Treatment.

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  Notices

  	
  10

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  Miscellaneous

  	
  10

  
	
  Section 8.1

  	
  Successors and Assigns;
  Assigments

  	
  10

  
	
  Section 8.2

  	
  Severability

  	
  10

  
	
  Section 8.3

  	
  Counterparts

  	
  10

  
	
  Section 8.4

  	
  Governing Law

  	
  11

  
	
  Section 8.5

  	
  Construction

  	
  11

  
	
  Section 8.6

  	
  Entire Agreement

  	
  11

  
	
   

  	
   

  	
   

  
	
  Schedule A

  	
  Defined Terms

  	
   

  
	
  Schedule B

  	
  Information Relating To
  Purchasers

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit 1

  	
  Form of Temporary
  Note

  	
   

  
	
  Exhibit 2

  	
  Form of Indenture

  	
   

  
	
  Exhibit 3

  	
  Form of Registration
  Rights Agreement

  	
   

  
	
  Exhibit 4

  	
  Form of
  Vinson & Elkins LLP Opinion

  	
   

  

 

i

 

Note Purchase Agreement

 

for

 

51⁄2 % Senior Notes due 2016

 

June 22, 2009

 

TO EACH OF THE PURCHASERS:

 

Ladies and Gentlemen:

 

Huntsman International LLC,
a Delaware  limited liability company (the “Company”), agrees with each of the purchasers whose names
appear on the signature pages hereto (each, a “Purchaser”
and, collectively, the “Purchasers”) as
follows:

 

SECTION 1.         AUTHORIZATION OF NOTES.

 

The Company has authorized
the issue and delivery of $600,000,000  aggregate principal amount of its 51⁄2 % Senior Notes due
2016.  Certain capitalized and other
terms used in this Note Purchase Agreement (this “Agreement”)
are defined in Schedule A.

 

SECTION 2.         SALE AND ACCEPTANCE OF TEMPORARY NOTES.

 

Subject to the terms and
conditions of this Agreement, the Company will issue to each Purchaser and each
Purchaser will accept from the Company, at the Closing provided for in Section 3,
a Temporary Note (each, a “Temporary Note”
and, collectively, the “Temporary Notes”)
in the form attached as Exhibit 1 and in the principal amount
specified opposite such Purchaser’s name in Schedule B in exchange
for a payment in cash equal to 100% of the principal amount thereof.  In accordance with terms of the Temporary
Notes, the Company will exchange the Temporary Notes for beneficial interests
in notes (the “Indenture Notes” and, together
with the Temporary Notes, collectively, the “Notes”)
issued under an indenture (the “Indenture”) in
the form attached as Exhibit 2 on or prior to thirty (30) days from
the Closing Date (as defined below), in accordance with the Temporary Note.

 

SECTION 3.         CLOSING.

 

The delivery of the Temporary
Note to be accepted by each Purchaser shall occur at the offices of Vinson &
Elkins L.L.P., First City Tower, 1001 Fannin, Suite 2500, Houston, Texas
77002, at 9:00 a.m., Houston time, at a closing (the “Closing”)
on June 23, 2009 or on such other Business Day thereafter as may be agreed
upon by the Company and the Purchasers (the “Closing Date”).  At the Closing the Company will deliver to
each Purchaser the Temporary Note to be accepted by such Purchaser in the form
of a single Temporary Note dated the date of the Closing and registered in such
Purchaser’s name, against delivery by such Purchaser to the Company or its
order of immediately available funds in the amount of the principal amount
thereof by wire transfer to an account number designated by the Company before
the Closing.

 

 

SECTION 4.         CONDITIONS TO CLOSING.

 

Section 4.1             Conditions to Purchaser’s Obligations.  Each Purchaser’s
obligation to accept the Temporary Note to be delivered to such Purchaser at
the Closing is subject to the fulfillment to such Purchaser’s satisfaction,
prior to or at the Closing, of the following conditions:

 

(a)           The Company shall
have delivered to such Purchaser the Temporary Note, duly authorized, executed
and delivered, to be accepted by such Purchaser in the form of a single
Temporary Note dated as of the Closing Date and registered in such Purchaser’s
name.

 

(b)           The representations
and warranties of the Company in this Agreement shall be true and correct in
all material respects (without regard to qualifications or exceptions contained
therein as to materiality) when made and at the time of the Closing as though
made on and as of the Closing.

 

(c)           The Company shall
have performed and complied in all material respects with all agreements and
conditions contained in this Agreement required to be performed or complied
with by it prior to or at the Closing.

 

(d)           The Registration
Rights Agreement, in substantially the form attached hereto as Exhibit 3
(the “Registration Rights Agreement”),
shall have been duly authorized, executed and delivered to the Purchasers by
the Company.

 

(e)           No Governmental
Authority having jurisdiction over any party hereto shall have issued any
order, decree, ruling, injunction or other action that is in effect (whether
temporary, preliminary or permanent) restraining, enjoining or otherwise
prohibiting the consummation of the transactions contemplated by this
Agreement, and no law or regulation shall have been adopted that makes
consummation of the transaction contemplated by this Agreement illegal or
otherwise prohibited.

 

(f)            The Company shall
have not, in any material respect, violated or breached any terms, agreements
or conditions contained in that certain Settlement Agreement and Release dated
as of June 22, 2009 (the “Settlement Agreement”)
by and among the Company and certain of its affiliates, on the one hand, and
certain of the Purchasers and their respective affiliates who are party thereto
(the “Bank Settlement Parties”), on the other
hand.

 

(g)           The Purchasers shall
have received a written opinion of Vinson & Elkins L.L.P., counsel for
the Company, substantially to the effect set forth in Exhibit 4 hereto.

 

(h)           The Purchasers shall
have received from each of the Huntsman Corporation and the Company (i) a
copy of such entity’s articles of incorporation or articles of organization (as
applicable), including all amendments thereto, certified as of a recent date by
the Secretary of State of the state of such entity’s organization, and a
certificate as to the good standing of such entity as of a recent date, from
such Secretary of State; (ii) a certificate of the secretary of such
entity dated the Closing Date and certifying (A) that attached thereto is
a true and complete copy of the by-laws (or operating agreement) of such entity
as in effect on the Closing Date and at all times since a date prior to the
date of the resolutions described in 

 

2

 

clause (B) below,
(B) that attached thereto is a true and complete copy of resolutions duly
adopted by the board of directors or members of such entity authorizing the
execution, delivery and performance by such entity (to the extent applicable)
of this Agreement, the Temporary Notes and the Registration Rights Agreement
and that such resolutions have not been modified, rescinded or amended and are
in full force and effect, (C) that the articles of incorporation or
articles of organization of such entity have not been amended since the date of
the last amendment thereto shown on the certificate of good standing furnished
pursuant to clause (i) above, and (D) as to the incumbency and
specimen signature of each officer of such entity executing this Agreement, the
Temporary Notes, the Registration Rights Agreement or any other document
delivered in connection herewith on behalf of such party; and (iii) a
certificate of another officer of such entity as to the incumbency and specimen
signature of the secretary executing the certificate pursuant to clause (ii) above.

 

(i)            The Purchasers
shall have received a certificate, dated the Closing Date signed by the chief
financial officer of the Huntsman Corporation and the Company, confirming
compliance with the conditions precedent in Section 4.1.

 

Section 4.2             Conditions to Company’s Obligations.  The Company’s obligation to issue the
Temporary Notes to be delivered to any of the Purchasers at the Closing is
subject to the fulfillment to the Company’s satisfaction, prior to or at the
Closing, of the following conditions:

 

(a)           Each Purchaser shall
have delivered, or caused to be delivered, to the Company or its order,
immediately available funds in the amount specified opposite such Purchaser’s
name in Schedule B.

 

(b)           The representations
and warranties of each of the Purchasers in this Agreement shall be true and
correct in all material respects (without regard to qualifications or
exceptions contained therein as to materiality) when made and at the time of
the Closing.

 

(c)           Each of the
Purchasers shall have performed and complied in all material respects with all
agreements and conditions contained in this Agreement required to be performed
or complied with by them prior to or at the Closing.

 

(d)           Each of the
Purchasers shall have executed and delivered to the Company the Registration
Rights Agreement.

 

(e)           No Governmental
Authority having jurisdiction over any party hereto shall have issued any
order, decree, ruling, injunction or other action that is in effect (whether
temporary, preliminary or permanent) restraining, enjoining or otherwise
prohibiting the consummation of the transactions contemplated by this
Agreement, and no law or regulation shall have been adopted that makes
consummation of the transaction contemplated by this Agreement illegal or
otherwise prohibited.

 

(f)            The Bank Settlement
Parties shall have not, in any material respect, violated or breached any
terms, agreements or conditions contained in the Settlement Agreement.

 

3

 

SECTION 5.          REPRESENTATIONS AND AGREEMENTS OF THE
COMPANY.

 

The Company represents and
warrants to and agrees with each Purchaser as follows:

 

Section 5.1             Organization; Power and Authority.  The Company is a limited liability company
duly incorporated, validly existing and in good standing under the laws of the
State of Delaware, and is duly qualified as a foreign limited liability company
and is in good standing in each jurisdiction in which it owns or leases
properties or conducts any business, other than those jurisdictions as to which
the failure to be so qualified or in good standing could not, individually or
in the aggregate, reasonably be expected to have a material adverse effect on
the ability of the Company to perform its obligations under this Agreement, the
Notes (including the payment of interest thereon or principal thereof), the
Indenture or the Registration Rights Agreement. 
The Company has all requisite power and authority to execute and deliver
this Agreement, the Notes, the Indenture and the Registration Rights Agreement,
to perform its obligations hereunder and thereunder and to consummate the
transactions that are the subject of this Agreement, the Notes, the Indenture
and the Registration Rights Agreement. 
Any person signing this Agreement, the Notes, the Indenture and the Registration
Rights Agreement on behalf of the Company has been duly authorized by the
Company to do so.  No other consent,
approval or authorization of any Person (other than the trustee under the
Indenture) is required in connection with the execution, delivery or
performance by the Company of this Agreement, the Notes, the Indenture or the
Registration Rights Agreement other than such consents, approvals or
authorizations, as to which the failure to obtain could not, individually or in
the aggregate, reasonably be expected to have a material adverse effect on the
ability of the Company to perform its obligations under this Agreement, the
Notes (including the payment of interest thereon or principal thereof), the
Indenture or the Registration Rights Agreement.

 

Section 5.2             Authorization, Etc. 
The execution and delivery of this Agreement, the Notes, the Indenture
and the Registration Rights Agreement have been duly authorized by all
necessary corporate action on the part of the Company, and this Agreement
constitutes, and upon execution and delivery thereof each of the Notes, the
Indenture and the Registration Rights Agreement will constitute, a legal, valid
and binding obligation of the Company enforceable against the Company in
accordance with its terms, except as such enforceability may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally and (ii) general
principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law).

 

Section 5.3             Compliance with Rulings, Other Instruments, Etc.  The execution, delivery and performance by
the Company of this Agreement, the Registration Rights Agreement, the Indenture
and the Notes and the performance by the Company of its obligations hereunder
and thereunder will not (i) violate, result in any breach of, or
constitute a default under (with or without notice or lapse of time or both),
or result in the termination of or acceleration of performance required by, or
result in a right of termination or acceleration under, any agreement,
indenture, mortgage, deed of trust, loan, bond, lease, purchase or credit
agreement to which the Company is bound or the Company’s corporate charter or
by-laws or the governing documents of any subsidiary of the Company, or any
other agreement or instrument to which the Company or any of its subsidiaries
or its or their respective properties or assets are bound, or (ii) result
in a breach of any of the terms, conditions or provisions of any order,
judgment, decree, or ruling of 

 

4

 

any
court, arbitrator or Governmental Authority applicable to the Company or any of
its subsidiaries, in each case except as would not have a material adverse effect
on the ability of the Company to perform its obligations under this Agreement,
the Notes (including the payment of interest thereon or principal thereof), the
Indenture or the Registration Rights Agreement or adversely affect the validity
thereof.

 

Section 5.4             Governmental Authorizations, Etc.  Assuming the accuracy of the Purchasers’
representations in Section 6, no consent, approval or authorization of, or
registration, filing or declaration with, any Governmental Authority is
required in connection with the execution, delivery or performance by the
Company of this Agreement, the Indenture or the Notes except the filing of the Form 8-K.

 

Section 5.5             Material Adverse Change. Since March 31, 2009, there
has been no material adverse change nor any development or event involving a
material adverse change, in the condition (financial or other), business,
properties or results of operations of Huntsman Corporation or the Company and
its subsidiaries taken as a whole after giving effect to the terms of the Settlement
Agreement.

 

Section 5.6             Exchange Act Filings. 
On the date of this Agreement, the Company’s Annual Report on Form 10-K
most recently filed with the Securities and Exchange Commission (the “Commission”) and all subsequent reports (collectively, the “Exchange Act Reports”) which have been filed by the Company
with the Commission or sent to shareholders pursuant to the Securities Exchange
Act of 1934 (the “Exchange Act”)
do not include any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading. Such documents, when
they were filed with the Commission, conformed in all material respects to the
requirements of the Exchange Act and the rules and regulations of the
Commission thereunder.

 

Section 5.7             Exchange Default.  If
the Company fails to consummate the Exchange by thirty (30) days from the
Closing Date for any reason (other than the failure of a Purchaser to deliver a
Temporary Note when reasonably requested in connection with the Exchange) (an “Exchange
Default”), then, as liquidated damages for such Exchange Default, in addition
to the 51⁄2 % base interest, the Temporary Notes shall accrue at a per annum rate
of 5% from the date of such Exchange Default until the Exchange is consummated.

 

Section 5.8             Resale Activities.

 

(a)           Resale Assistance:
Upon reasonable notice by the Purchasers to the Company (a “Notice”), the
Company shall assist in marketing the resale of the Notes (a “Resale Offering”) (it being understood there may be up to 4
Notices; it being further understood and agreed that one such Resale Offering
shall require the Company to initiate and complete the activities enumerated in
clauses (i)-(iv) of this paragraph and three such Resale Offerings shall
require the Company to initiate and complete the activities enumerated in
clauses (i), (iii) and (iv) only). Such assistance of a Resale
Offering, to be commenced promptly upon the Company’s receipt of a Notice, shall
require that the Company initiate and complete, in a reasonably timely manner,
the following: (i) the preparation of a customary offering memorandum for
the Notes to be resold, including all information that would be necessary for
the Purchasers to receive 

 

5

 

customary
comfort (including “negative assurance” comfort) from independent accountants
in connection with the offering of such Securities (an “Offering Document”),
and any other customary marketing materials required by the Purchasers to be
used in connection with the Resale Offering, (ii) participation by the
Company in a customary “high yield road show” in connection with the Resale
Offering, (iii) permit the Purchasers the opportunity to conduct a
reasonable investigation within the meaning of the Securities Act, including
reasonable access to the Company’s books and records, officers, accountants and
other advisors, and (iv) using reasonable efforts to cause the preparation
and delivery of a comfort letter (which shall provide “negative assurance”
comfort) and a 10b-5 letter from outside counsel with respect to the Offering
Document, in each case reasonably acceptable to the Purchasers.

 

(b)           Reimbursement:
The Purchasers shall reimburse the Company from time to time, upon presentation
of a reasonably detailed summary statement, for all reasonable documented
out-of-pocket expenses (including travel expenses and fees, disbursements and
other charges of counsel to the Company) in connection with a Resale Offering,
except for (i) internal expenses including all salaries and expenses of
the Company’s officers and employees performing legal or accounting duties and (ii) fees,
disbursements and expenses of independent certified accountants of the Company
(including the expenses of comfort letters).

 

(c)           Indemnification:
In connection with each Resale Offering, (i) the Company shall make a
representation to each selling Purchaser in customary form that the Offering
Document does not contain any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading, and (ii) the
Company, the Guarantors and the applicable Purchaser will enter into an
indemnification agreement with respect to the Offering Document providing for
indemnification and contribution on substantially the same terms as Section 6
of the Registration Rights Agreement but with references to registration
statements and prospectuses being references to the Offering Document. At the
same time, the Company will reconfirm to the applicable Purchaser the
representations contained in this Agreement.

 

SECTION 6.         REPRESENTATIONS AND AGREEMENTS OF THE
PURCHASERS.

 

Each Purchaser hereby represents
and warrants to and agrees with the Company as follows in each case with
respect to itself and its Affiliates:

 

Section 6.1             Power and Authority; Authorization. 
Each Purchaser has all requisite power and authority to
execute and deliver this Agreement and the Registration Rights Agreement, to
perform its obligations hereunder and thereunder and to consummate the
transactions that are the subject of this Agreement and the Registration Rights
Agreement.  The execution and delivery of
this Agreement and the Registration Rights Agreement, and the performance by
each Purchaser of its obligations hereunder and thereunder, will not violate,
result in any breach of or constitute a default (with or without notice or
lapse of time or both) under the terms of any agreement, indenture or other
instrument, license, judgment, decree, order, law, statute, ordinance or other
governmental rule or regulation by which such Purchaser is bound, except
as would not have a material adverse effect on the ability of such Purchaser to
perform its obligations under this Agreement or the Registration Rights
Agreement or adversely affect the validity thereof. Any Person signing this
Agreement or the Registration Rights 

 

6

 

Agreement
on behalf of any Purchaser has been duly authorized by such Purchaser to do
so.  Upon execution and delivery thereof,
this Agreement and the Registration Rights Agreement will constitute a legal,
valid and binding obligation of each Purchaser enforceable against each
Purchaser in accordance with its terms, except as such enforceability may be
limited by (i) applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights
generally and (ii) general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law). No
other consent, approval or authorization of any Person is required in
connection with the execution, delivery or performance by any Purchaser of this
Agreement and the Registration Rights Agreement other than such consents,
approvals or authorizations as to which the failure to obtain could not,
individually or in the aggregate, reasonably be expected to have a material
adverse effect on the ability of any Purchaser to perform its obligations under
this Agreement or the Registration Rights Agreement.

 

Section 6.2             Accredited Investor Status.  The
Purchaser is an “Accredited Investor” within the meaning of Rule 501 under
the Securities Act and is acquiring the Notes solely for investment for its own
account and not for the benefit or account of any other Person, and will not
sell, assign, transfer or otherwise dispose of all or any part of the Notes
except in accordance with the Securities Act and the restrictive legends
included in the Notes.

 

Section 6.3             ERISA Status.  The
Purchaser’s investment in the Notes will not be prohibited under Section 406
of the United States Employee Retirement Income Security Act of 1974, as
amended, or constitute a “prohibited transaction” (as defined in Section 4975(c)(1) of
the United States Internal Revenue Code of 1986 (as amended, the “Code”)) for which an exemption does not
apply.

 

Section 6.4             Acknowledgements and Waiver.  Each
Purchaser acknowledges and agrees that:

 

(a)           The Notes and the
related Guarantees (collectively the “Securities”)
are being acquired by each Purchaser as part of the settlement (the “Settlement”) contemplated by the Settlement Agreement.

 

(b)           Each Purchaser has
had access to all public filings made by the Company with the Securities and
Exchange Commission. The Company may possess material, nonpublic information
about the Company and its Affiliates and their condition (financial and
otherwise), financial status, results of operations, businesses, properties,
management, plans and prospects, including but not limited to certain
information concerning the Company’s recent consolidated results of operations
and its outlook for future periods (collectively, the “Information”),
and each Purchaser (i) was offered such Information by the Company and (ii) did
not request and declined to receive such Information in making the decision to
accept the Securities pursuant to this Agreement.  Each Purchaser has had access to, and is
familiar with, the information regarding the Company and the Settlement in the
possession of the Bank Parties in connection with its purchase of the
Securities and did not rely on the Company or its Affiliates or representatives
to provide any such information.

 

7

 

(c)           The parties to the
Settlement Agreement agreed to the Settlement, including the acceptance by each
of the Purchasers of the Securities pursuant to this Agreement, on the belief
that no Purchasers or their Affiliates would have any claims or causes of
action against the Company or its subsidiary or their respective agents and
their respective Affiliates, controlling persons, officers, directors,
employees, representatives, agents, attorneys and managers, with respect to the
purchase and sale of the Securities pursuant to this Agreement, based upon,
relating to or arising out of representations not expressly given by the
Company in this Agreement, including claims related to nondisclosure of any
Information.  Accordingly, each Purchaser
hereby waives and releases, to the fullest extent permitted by law, any and all
claims and causes of action it or any of its Affiliates has or may have against
any of the foregoing Persons with respect to the purchase and sale of the
Securities, based upon, relating to or arising out of representations not
expressly given by the Company herein, including claims related to
nondisclosure of any Information; provided  however that nothing
in this Section 6.4(c) shall waive, release or impede any claims or
causes of action each Purchaser may have for failure of the Company to comply
with its obligations under this Agreement, the Notes or the Registration Rights
Agreement.

 

(d)           Each Purchaser
further acknowledges that, to the extent the Purchaser, or any of the Purchaser’s
Affiliates knew that any representation and warranty
made herein by the Company is inaccurate or untrue, this constitutes a release
and waiver of any and all actions, claims, suits, damages or rights, at law or
in equity, against the Company by the Purchaser arising out of breach of that
representation and warranty.  Nothing herein shall be deemed to limit or
waive the Purchaser’s rights against the Company arising out of any other
representation and warranty made herein by the Company.

 

Section 6.5             Matters Concerning the Securities.

 

(a)           Each Purchaser
acknowledges and agrees that:  (i) the
Securities have not been registered under the Securities Act, the securities
laws of any state or the securities laws of any other jurisdiction; and (ii) no
governmental or regulatory agency has passed upon, or will pass upon, the
Securities or has made, or will make, any finding or determination as to the
fairness of investment in the Securities.

 

(b)           Each Purchaser
acknowledges and agrees that (i) the Securities cannot be sold unless they
are subsequently registered under the Securities Act or unless an exemption
therefrom is available, and (ii) the Securities have not been registered
under applicable state securities laws and, therefore, cannot be sold unless
they are subsequently registered under applicable state securities laws or
unless an exemption therefrom is available. Each Purchaser acknowledges and
agrees to the restrictions on transfer of the Securities set forth in the legends
thereon.

 

(c)           Each Purchaser
acknowledges that it, together with its Affiliates, is familiar with the
Company due to their involvement in the matters resolved by the Settlement
Agreement.  Each Purchaser is a
sophisticated party fully capable of evaluating the Settlement and all of its
elements, including the acceptance of the Securities pursuant to this
Agreement, without the need for any possible additional material non-public
Information that the Company may possess.

 

8

 

(d)           In formulating a
decision to enter into this Agreement, including the acceptance of the
Securities by the Purchasers under this Agreement, no Purchaser has relied or
acted on the basis of any representations not expressly given in this
Agreement.

 

(e)           Each Purchaser
agrees to comply with the provisions in the Temporary Notes relating to the
Exchange as defined therein.

 

(f)            The Company hereby
agrees, as agent for each of the Purchasers, to hold the Temporary Notes on
behalf of such Purchasers until the consummation of the Exchange; provided,
however, upon the request of either or both of the Purchasers, the Company
hereby agrees to promptly release the Temporary Notes to such requesting
Purchaser.

 

Section 6.6             Consistent Tax Treatment.  For
federal income tax purposes, the Company and each Purchaser that is a signatory
hereto agree (i) the “issue price” of the Notes being issued to such
Purchaser for purposes of Section 1273 of the Code is the principal amount
specified opposite such Purchaser’s name in Schedule B, and (ii) the
Notes are not part of an “investment unit” for purposes of Treasury Regulation Section 1.1273-2.
Each Purchaser that is a signatory hereto acknowledges that it (and any
majority-owned affiliate) is acting as principal in acquiring the Notes (and
not as a bond house, broker, or similar person acting in the capacity of an
underwriter, placement agent, or wholesaler), and each such Purchaser agrees
that it will not, and any majority-owned affiliate will not, sell all or any
portion of the Notes for 30 days following the date on which such Notes are
issued.  Each Purchaser that is a signatory hereto agrees that it, and any
majority-owned affiliate thereof, will file all federal income tax returns (and
all other income tax returns that follow federal income tax principles) in a
manner consistent with this Section 6.6 and the Company shall not have any
recourse against such Purchaser on the basis of this Section 6.6, provided
that such Purchaser, and any majority-owned affiliate thereof, so files its tax
returns and complies with the 30-day requirement of the immediately preceding
sentence. The Company agrees to file all federal income tax returns (and all
other income tax returns that follow federal income tax principles) in a manner
consistent with this Section 6.6, and no Purchaser shall have any recourse
against the Company on the basis of this Section 6.6, provided that the
Company so files its tax returns.  For the avoidance of doubt, this Section 6.6
is not intended to (1) affect any Purchaser’s or any majority-owned
affiliate’s financial accounting
reporting with respect to the Notes, or (2) limit the ability of any
Purchaser, or any majority-owned affiliate thereof, that otherwise utilizes “mark
to market” accounting with respect to the Notes for Federal income tax purposes
to mark the Notes to market in a manner consistent with its method of
accounting.  This Section 6.6 shall
not apply to a Purchaser that is a signatory hereto, or to any majority-owned affiliate thereof,
unless the Company provides to such Purchaser, within 30 days of the Closing
Date, a copy of an opinion of a nationally recognized independent tax counsel,
addressed to the Company and reasonably satisfactory to the Purchaser (but not
stating that the Purchaser is entitled to rely on such opinion), stating that
the foregoing tax treatment is more likely than not correct for Federal income
tax purposes.  This Section 6.6 shall not apply to a Purchaser, or
any majority-owned affiliate thereof, with respect to tax returns filed by it
with a particular taxing authority for any tax year after the time such taxing
authority proposes an adjustment challenging the tax reporting position for any
tax year required by this Section 6.6. 
Notwithstanding Section 8.1, this Section 6.6 shall apply only
to a Purchaser that is a signatory hereto and its majority-owned
affiliates.

 

9

 

SECTION 7.         NOTICES.

 

Except as otherwise provided
in this Agreement, all notices and communications provided for hereunder shall
be in writing and sent (a) by facsimile if the sender on the same day
sends a confirming copy of such notice by a recognized overnight delivery
service (charges prepaid), or (b) by registered or certified mail with
return receipt requested (postage prepaid), or (c) by a recognized
overnight delivery service (with charges prepaid), or (d) if consented to
by the recipient as set forth on Schedule B hereto, by electronic
mail.  Any such notice must be sent:

 

(i)            if to any Purchaser or its nominee, to such Purchaser or
nominee at the address specified for such communications in Schedule B,
or at such other address as such Purchaser or nominee shall have specified to
the Company in writing,

 

(ii)           if to any other holder of any Note, to such holder at such
address as such other holder shall have specified to the Company in writing, or

 

(iii)          if to the Company, to the Company at 500 Huntsman Way, Salt
Lake City, Utah 84108 to the attention of the Treasurer, facsimile number:
(801) 584-5788 (with a copy to the General Counsel, facsimile number:
(801) 584-5782), or at such other address as the Company shall have specified
to the holder of each Note in writing.

 

Notices
under this Section 7 will be deemed given only when (x) delivered by
physical delivery or electronic mail, (or if such date is not a Business Day,
on the next Business Day) (y) facsimile confirmation is received (or if
such receipt is not on a Business Day, on the next Business Day) or (z) if
sent by registered or certified mail, three Business Days after the date of
mailing.

 

SECTION 8.         MISCELLANEOUS.

 

Section 8.1             Successors and Assigns; Assignments.  This Agreement and all covenants and other
agreements contained in this Agreement by or on behalf of any of the parties
hereto shall bind and inure to the benefit of the parties hereto and their
respective successors and permitted assigns whether so expressed or not. This
Agreement shall not be assignable except by operation of law or upon consent of
the parties hereto.

 

Section 8.2             Severability.  Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction.

 

Section 8.3             Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original but all of which together shall constitute one instrument.  Each counterpart may consist of a number of
copies hereof, each signed by less than all, but together signed by all, of the
parties hereto.

 

10

 

Section 8.4             Governing Law.  THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.  Each of the
parties hereto agrees to submit to the non-exclusive jurisdiction of the
competent courts of the State of New York in any action or proceeding arising
out of or relating to this Agreement or the Notes.

 

Section 8.5             Construction.  All
references in this Agreement to Exhibits, Schedules, Sections, subsections
and other subdivisions refer to the corresponding Exhibits, Schedules, 
Sections, subsections and other subdivisions of this Agreement unless expressly
provided otherwise.  Titles appearing at
the beginning of any Sections, subsections or other subdivisions of this
Agreement are for convenience only, do not constitute any part of such
Articles, Sections, subsections or other subdivisions, and shall be disregarded
in construing the language contained therein. 
The words “this Agreement,” “herein,” “hereby,” “hereunder” and “hereof”
and words of similar import, refer to this Agreement as a whole and not to any
particular subdivision unless expressly so limited.  The words “this Section,” “this subsection”
and words of similar import, refer only to the Sections or subsections hereof
in which such words occur.  The word “including”
(in its various forms) means “including, without limitation.”

 

Section 8.6             Entire Agreement.  This
Agreement, the Notes, the Indenture, the Registration Rights Agreement, the
Settlement Agreement, the Fourth Amendment to the Credit Agreement, the Voting
Agreement and in each case the related documents constitute the entire agreement
of the parties, and supersede any and all prior statements, representations,
promises or other Agreements, written or oral, with respect to the subject
matter of this Agreement.

 

*   
*    *    *   
*

 

[Signature Page Follows]

 

11

 

If you are in agreement with
the foregoing, please sign the form of agreement on a counterpart of this
Agreement and return it to the Company, whereupon this Agreement shall become a
binding agreement between you and the Company.

 

	
   

  	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Signature
page to Note Purchase Agreement]

 

 

This Agreement is hereby

accepted and agreed to as

of the date thereof.

 

	
   

  	
  CREDIT SUISSE SECURITIES (USA) LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK SECURITIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

[Signature
page to Note Purchase Agreement]

 

 

Schedule A

 

DEFINED TERMS

 

As used herein, the
following terms have the respective meanings set forth below or set forth in
the Section hereof following such term:

 

“Affiliate” of any specified Person means any other person
which, directly or indirectly, is in control of, is controlled by, or is under
common control with, such specified Person. 
For purposes of this definition, control of a Person means the power,
direct or indirect, to direct or cause the direction of the management and
policies of such Person whether by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

 

“Agreement”
is defined in Section 1.

 

“Bank Parties”
means the Lenders (as defined in the Settlement Agreement) and their
Affiliates.

 

“Bank
Settlement Parties” is defined in Section 4.1(f).

 

“Board of Directors” means the Board of Directors of the
Company or any committee thereof duly authorized to act on behalf of such
board.

 

“Business Day” means any day other than a Saturday, a Sunday or
a day on which commercial banks in New York, New York or Houston, Texas are
required or authorized to be closed.

 

“Closing”
is defined in Section 3.

 

“Code” means the Internal Revenue Code of 1986, as amended
from time to time, and the rules and regulations promulgated thereunder
from time to time.

 

“Company” means  Huntsman International LLC, a Delaware
limited liability company, or any successor to its obligations hereunder.

 

“Exchange”
has the meaning assigned to such term in the Temporary Notes.

 

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

 

“Guarantors”
means the Guarantors under the Indenture.

 

“Governmental Authority” means the government of the United
States of America or any State or other political subdivision thereof, or any
other jurisdiction in which the Company or any subsidiary conducts all or any
part of its business, or which asserts jurisdiction over any properties of the
Company or any subsidiary, or any entity exercising executive, legislative,
judicial, regulatory or administrative functions of, or pertaining to, any such
government.

 

1

 

“holder”
means, with respect to any Note the Person in whose name such Note is
registered in the register maintained by the Company.

 

“Indenture” is defined in Section 2.

 

“Indenture Notes” are defined in Section 2.

 

“Information” is defined in Section 6.4(b).

 

“Notes” are defined in Section 2.

 

“Person” means an individual, partnership (limited or
general), corporation, joint venture, limited liability company, association,
trust, business trust, unincorporated organization or business entity.

 

“Purchaser” is defined in the first paragraph of this
Agreement.

 

“Registration Rights Agreement” is defined
in Section 4.1(d).

 

“Securities”
are defined in Section 6.4(a).

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time,
and the rules and regulations promulgated thereunder from time to time in
effect.

 

“Settlement”
is defined in Section 6.4(a).

 

“Settlement Agreement”
is defined in Section 4.1(f).

 

“Temporary
Notes” are defined in Section 2.

 

2

 

Schedule B

 

INFORMATION RELATING TO PURCHASERS

 

	
  Name of Purchaser

  	
   

  	
  Principal Amount of Notes to be Purchased

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit Suisse Securities
  (USA) LLC

  	
   

  	
  $

  	
  300,000,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deutsche Bank Securities
  Inc.

  	
   

  	
  $

  	
  300,000,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  600,000,000.00

  	
   

  

 

1

 

(2)                                 All
communications, including notices of payments and written confirmations of such         wire transfers:

 

With
respect to Credit Suisse Securities (USA) LLC:

 

Credit Suisse Securities (USA) LLC

Eleven Madison Avenue, New York, New York
10010

Attn: LCD-IBD

 

and
with respect to Deutsche Bank Securities Inc.:

 

Deutsche Bank Securities Inc.

60 Wall Street

New York, New York 10005

Attn: Patricia McGowan

 

2

 

Exhibit 1

 

[FORM OF TEMPORARY NOTE]

 

1

 

Exhibit 2

 

[FORM OF INDENTURE]

 

1

 

Exhibit 3

 

[FORM OF REGISTRATION RIGHTS
AGREEMENT]

 

1

 

Exhibit 4

 

[FORM OF V&E OPINION]

 

1

 

EXHIBIT 1

 

[FORM OF TEMPORARY NOTE]

 

THIS NOTE (OR ITS
PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS NOTE IS NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

 

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

 

THIS
NOTE IS SUBJECT TO RESTRICTIONS ON TRANSFER STATED HEREIN.

 

A-1

 

HUNTSMAN INTERNATIONAL LLC

 

51⁄2% 
Senior Note due 2016

 

$                      

 

HUNTSMAN INTERNATIONAL LLC,
a Delaware limited liability company (the “Company”), for value received,
promises to pay to                     
or registered assigns (the “Holder”), the principal sum of $              ,
on June 30, 2016.

 

Interest Payment Dates:  June 30 and December 31 (commencing
December 31, 2009)

 

Record Dates:  June 15 and December 15

 

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

 

This Note is issued in
accordance with the Note Purchase Agreement, dated June 22, 2009, by and
among Huntsman International LLC, Credit Suisse Securities (USA) LLC and
Deutsche Bank Securities Inc. (the “Note Purchase Agreement”) and may not be
transferred, except in accordance with the terms of the Note Purchase
Agreement.

 

A-2

 

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

 

	
  Dated: June    , 2009

  	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Registered address of Holder:

 

 

 

A-3

 

(REVERSE OF NOTE)

 

51⁄2% 
Senior Note due 2016

 

1.             Interest. 
HUNTSMAN INTERNATIONAL LLC, a Delaware limited liability company (the “Company”),
promises to pay interest on the principal amount of this Note at the rate per
annum shown above.  Interest on this Note
will accrue from the most recent date on which interest has been paid or, if no
interest has been paid, from June 23, 2009.  The Company will pay interest semi-annually
in arrears on each June 30 and December 31 (each, an “Interest
Payment Date”) and at stated maturity, commencing on December 31, 2009.  Interest will be computed on the basis of a
360-day year comprised of twelve 30-day months.

 

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

 

2.             Method of Payment.  The Company shall pay interest on this Note
(except defaulted interest) to the Persons who are the registered Holders at
the close of business on the June 15 or December 15 (each, a “Record
Date”) immediately preceding the Interest Payment Date even if the Notes are
cancelled on registration of transfer or registration of exchange after such
Record Date.  The Holder must surrender
this Note to the Company or its paying agent to collect principal
payments.  The Company shall pay
principal, premium and interest in immediately available funds by wire transfer
to an account number designated by the Holder payable in money of the United
States that at the time of payment is legal tender for payment of public and
private debts.  The Company may deliver
any such interest payment to the Holder at the Holder’s registered address set
forth hereon.

 

3.             Exchange; Indenture.  On or prior to thirty (30) days from the date
hereof, the Company shall exchange (the “Exchange”) this Note (including any
right to accrued interest therein), against delivery thereof, for a beneficial
interest in a new 51⁄2% Senior Note due 2016 of the Company (an “Indenture Note”)
of equal principal amount (and accruing interest from the same date) issued and
authenticated pursuant to the Indenture attached as Exhibit 2 to the Note
Purchase Agreement  (the “Indenture”,
which shall be executed in substantially such form, subject only to completion
of missing information and subject to any changes as shall be reasonably requested
by the Trustee thereunder).  The
Indenture Note will be issued in the form of a Global Security as provided for
in the Indenture.  By acceptance of this
Note, the holder hereof agrees to deliver this Note, together with any required
information needed to effect the issuance of the Indenture Note, to the Company
to effect the Exchange, upon not less than two business days notice.

 

Prior to completion of the
Exchange, the Company and the holder of this Note agree that they will be bound
by the following provisions of the Indenture with respect to this Note as
though this Note were a Note issued under the Indenture:  Article IV (Covenants), Article V
(Successor Corporation), Article VI (Defaults and Remedies), Sections 9.01
([Amendments] Without Consent of Holders), 9.02 ([Amendments] With Consent of
Holders), 9.06 (Trustee to Sign Amendments, Etc.), 13.07 (Legal Holidays),
13.08 (Governing Law), 13.09 (No Adverse Interpretation of Other Agreements),
13.10 (No Recourse Against Others), 13.11 (Successors), 

 

A-4

 

13.12 (Duplicative
Originals), 13.13 (Severability) and 13.14 (Independence of Covenants), and any
definitions in Article I that are relevant to any of the foregoing
(together, the “Applicable Provisions”). 
Such Applicable Provisions shall be deemed incorporated by reference in
this Note with the same effect as if they were included herein.  For purposes of the foregoing, all references
in the Applicable Provisions to (i) the “Trustee” shall be deemed instead
to refer to the holder of this Note, (ii) the “Issue Date” shall be deemed
instead to refer to the date of this Note, and (iii) a “Guarantor” shall
be deemed to refer to the subsidiaries of the Company named as Guarantors in
the Indenture, notwithstanding the fact that they have not yet executed a guarantee
of the Indenture Notes.

 

4.             Optional Redemption.  This Note will be redeemable, at the Company’s
option, in whole at any time or in part from time to time, upon not less than
30 nor more than 60 days’ notice, at a redemption price equal to the principal
amount thereof, plus accrued and unpaid interest thereon, if any, to the date
of redemption.

 

5.             Notice of Redemption.  Notice of redemption will be delivered at
least 30 days but not more than 60 days before the Redemption Date to the
Holder at its registered address, except as provided in the Indenture.  Notes in denominations larger than $1,000 may
be redeemed in part.

 

6.             Exchange Default. 
If the Company fails to consummate the Exchange by thirty (30) days from
the date hereof for any reason (other than the failure of a Purchaser to
deliver a Temporary Note when reasonably requested in connection with the
Exchange) (an “Exchange Default”), then, as liquidated damages for such
Exchange Default, in addition to the 51⁄2 % base interest, the Temporary Notes
shall accrue at a per annum rate of 5% from the date of such Exchange Default
until the Exchange is consummated.

 

7.             Denominations; Transfer; Exchange.  The Notes are in fully registered form only,
without coupons, in denominations of $1,000 and integral multiples of
$1,000.  The Company may require a
Holder, among other things, to furnish reasonable endorsements and transfer
documents and to pay transfer taxes or similar governmental charges payable in
connection therewith, and to evidence compliance with any applicable
restrictions on transfer applicable to this Note under applicable law. This Note may not be transferred without consent of the Company.

 

8.             Register.  The
Company (and its agent) may treat the person in whose name this Note is
registered as the Holder and the owner of this Note for the purpose of
receiving payment and for all other purposes of this Note.  Notwithstanding anything to the contrary
herein, the right to receive payments of interest and principal under this Note
shall be transferable only upon surrender for cancellation of this Note, and
the issuance of a new Note registered in the name of the transferee.  In addition, the Company or its agent shall maintain
at one of its offices in the United States a register (“Register”) in which it
shall record the name of the Holder and any assignee and the principal amount
of the Notes owing to each Holder and assignee, and no transfer of the right to
principal and interest under a Note shall be valid unless so registered.  The entries in the Register shall be
conclusive, and the Company, its agent and the Holders may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Holder
hereunder for all purposes of this Note, notwithstanding notice to the
contrary.

 

9.             No Recourse Against Others.  No past, present or future stockholder,
director, officer, 

 

A-5

 

employee or incorporator, as
such, of the Company shall have any liability for any obligation of the Company
under this Note or for any claim based on, in respect of or by reason of, such
obligations or their creation.  The Holder
by accepting this Note waives and releases all such liability.  The waiver and release are part of the
consideration for the issuance of this Note.

 

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

 

A-6

 

[FORM OF ASSIGNMENT]

 

I or we assign to

 

PLEASE INSERT SOCIAL SECURITY

OR OTHER IDENTIFYING NUMBER

 

	
   

  	
   

  

 

 

(please print or type name
and address)

	
   

  
	
   

  
	
   

  

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

 

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

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

  

 

 

	
  Signature Guarantee:

  	
   

  

 

A-7

 

TEMPORARY GUARANTEE

 

For value received, the
undersigned hereby unconditionally guarantees, as principal obligor and not
only as a surety, to the Holder of this Note the payments of principal of,
premium, if any, and interest on this Note in the amounts and at the times when
due and interest on the overdue principal, premium, if any, and interest, if any,
of this Note, if lawful, all in accordance with and subject to the terms and
limitations of this Note and Article Eleven of the Indenture referred to
in this Note (to be interpreted as if this Note and this Guarantee were issued
thereunder).

 

THIS GUARANTEE SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK. The undersigned Guarantor hereby agrees to submit to the jurisdiction of
the courts of the State of New York in any action or proceeding arising out of
or relating to this Guarantee.

 

This Guarantee is subject to
release upon the terms set forth in the Indenture, and will be released
automatically upon consummation of the Exchange referred to in the Note.

 

A-8

 

IN WITNESS WHEREOF, each
Guarantor has caused this Guarantee to be duly executed.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  as Guarantor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  AIRSTAR CORPORATION

  
	
   

  	
   

  	
   

  	
  EUROFUELS LLC

  
	
   

  	
   

  	
   

  	
  EUROSTAR INDUSTRIES LLC

  
	
   

  	
   

  	
   

  	
  HUNTSMAN EA HOLDINGS LLC

  
	
   

  	
   

  	
   

  	
  HUNTSMAN ETHYLENEAMINES LTD.

  
	
   

  	
   

  	
   

  	
  HUNTSMAN INTERNATIONAL FINANCIAL LLC

  
	
   

  	
   

  	
   

  	
  HUNTSMAN INTERNATIONAL FUELS, L.P.

  
	
   

  	
   

  	
   

  	
  HUNTSMAN PROPYLENE OXIDE HOLDINGS LLC

  
	
   

  	
   

  	
   

  	
  HUNTSMAN PROPYLENE OXIDE LTD.

  
	
   

  	
   

  	
   

  	
  HUNTSMAN TEXAS HOLDINGS LLC

  
	
   

  	
   

  	
   

  	
  HUNTSMAN ADVANCED MATERIALS AMERICAS INC.

  
	
   

  	
   

  	
   

  	
  HUNTSMAN ADVANCED MATERIALS LLC

  
	
   

  	
   

  	
   

  	
  HUNTSMAN AUSTRALIA INC.

  
	
   

  	
   

  	
   

  	
  HUNTSMAN CHEMICAL COMPANY LLC

  
	
   

  	
   

  	
   

  	
  HUNTSMAN CHEMICAL FINANCE CORPORATION

  
	
   

  	
   

  	
   

  	
  HUNTSMAN CHEMICAL PURCHASING CORPORATION

  
	
   

  	
   

  	
   

  	
  HUNTSMAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  	
  HUNTSMAN EXPANDABLE POLYMERS COMPANY, LC

  
	
   

  	
   

  	
   

  	
  By: Huntsman International Chemicals Corporation,
  its Sole Member and Manager

  
	
   

  	
   

  	
   

  	
  HUNTSMAN FUELS, L.P.

  
	
   

  	
   

  	
   

  	
  HUNTSMAN GROUP
  INTELLECTUAL PROPERTY HOLDINGS CORPORATION

  
	
   

  	
   

  	
   

  	
  HUNTSMAN HEADQUARTERS CORPORATION

  
	
   

  	
   

  	
   

  	
  HUNTSMAN INTERNATIONAL CHEMICALS CORPORATION

  
	
   

  	
   

  	
   

  	
  HUNTSMAN INTERNATIONAL TRADING CORPORATION

  
	
   

  	
   

  	
   

  	
  HUNTSMAN MA INVESTMENT CORPORATION

  
	
   

  	
   

  	
   

  	
  HUNTSMAN MA SERVICES CORPORATION

  
	
   

  	
   

  	
   

  	
  HUNTSMAN PETROCHEMICAL CORPORATION

  

 

A-9

 

	
   

  	
   

  	
   

  	
  HUNTSMAN PETROCHEMICAL FINANCE CORPORATION

  
	
   

  	
   

  	
   

  	
  HUNTSMAN PETROCHEMICAL PURCHASING CORPORATION

  
	
   

  	
   

  	
   

  	
  HUNTSMAN PROCUREMENT CORPORATION

  
	
   

  	
   

  	
   

  	
  HUNTSMAN PURCHASING, LTD.

  
	
   

  	
   

  	
   

  	
  By: Huntsman Procurement
  Corporation, its General Partner

  
	
   

  	
   

  	
   

  	
  JK HOLDINGS CORPORATION

  
	
   

  	
   

  	
   

  	
  PETROSTAR FUELS LLC

  
	
   

  	
   

  	
   

  	
  PETROSTAR INDUSTRIES LLC

  
	
   

  	
   

  	
   

  	
  POLYMER MATERIALS INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Troy M. Keller

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Assistant Secretary

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TIOXIDE AMERICAS INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Executed as a Deed by Troy M. Keller for and on 

  	
   

  	
  By:

  	
   

  
	
  behalf of Tioxide Americas Inc. in the presence of

  	
   

  	
   

  	
  Name: Troy M. Keller

  
	
   

  	
   

  	
   

  	
  Title: Assistant Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
  Witness

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TIOXIDE GROUP

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name: J. Kimo Esplin

  
	
   

  	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name: L. Russell Healy

  
	
   

  	
   

  	
   

  	
  Title: Director

  

 

A-10

 

 

INDENTURE

 

Dated as of June     ,
2009

 

 

Among

 

 

HUNTSMAN INTERNATIONAL LLC, as Issuer,

 

 

each of the Guarantors named herein

 

 

and

 

 

[l], as Trustee

 

 

 

$600,000,000

 

5 1⁄2 % Senior Notes due 2016

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Definitions

  	
  1

  
	
  Section 1.02

  	
  Incorporation by Reference of TIA

  	
  27

  
	
  Section 1.03

  	
  Rules of Construction

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  THE NOTES

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  Form and Dating

  	
  28

  
	
  Section 2.02

  	
  Execution and Authentication; Aggregate Principal Amount

  	
  28

  
	
  Section 2.03

  	
  Registrar and Paying Agent

  	
  29

  
	
  Section 2.04

  	
  Paying Agent To Hold Assets in Trust

  	
  30

  
	
  Section 2.05

  	
  Holder Lists

  	
  30

  
	
  Section 2.06

  	
  Transfer and Exchange

  	
  30

  
	
  Section 2.07

  	
  Replacement Notes

  	
  31

  
	
  Section 2.08

  	
  Outstanding Notes

  	
  31

  
	
  Section 2.09

  	
  Treasury Notes

  	
  32

  
	
  Section 2.10

  	
  [Intentionally Omitted]

  	
  32

  
	
  Section 2.11

  	
  Cancellation

  	
  32

  
	
  Section 2.12

  	
  Defaulted Interest

  	
  32

  
	
  Section 2.13

  	
  CUSIP Numbers

  	
  33

  
	
  Section 2.14

  	
  Deposit of Moneys

  	
  33

  
	
  Section 2.15

  	
  Book-Entry Provisions for Global Securities

  	
  33

  
	
  Section 2.16

  	
  Transfer and Exchange of Securities

  	
  34

  
	
  Section 2.17

  	
  Special Transfer Provisions

  	
  37

  
	
  Section 2.18

  	
  Issuance of Additional Notes

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  REDEMPTION

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Notices to Trustee

  	
  38

  
	
  Section 3.02

  	
  Selection of Notes To Be Redeemed

  	
  38

  
	
  Section 3.03

  	
  Notice of Redemption

  	
  38

  
	
  Section 3.04

  	
  Effect of Notice of Redemption

  	
  39

  
	
  Section 3.05

  	
  Deposit of Redemption Price

  	
  39

  
	
  Section 3.06

  	
  Notes
  Redeemed in Part

  	
  39

  

 

i

 

ARTICLE IV

COVENANTS

 

	
  Section 4.01

  	
  Payment of Notes

  	
  40

  
	
  Section 4.02

  	
  Maintenance of Office or Agency

  	
  40

  
	
  Section 4.03

  	
  Limitation on Restricted Payments

  	
  40

  
	
  Section 4.04

  	
  Corporate Existence

  	
  42

  
	
  Section 4.05

  	
  Payment of Taxes and Other Claims

  	
  42

  
	
  Section 4.06

  	
  Maintenance of Properties and Insurance

  	
  42

  
	
  Section 4.07

  	
  Compliance Certificate; Notice of Default

  	
  43

  
	
  Section 4.08

  	
  Compliance with Laws

  	
  43

  
	
  Section 4.09

  	
  Reports to Holders

  	
  43

  
	
  Section 4.10

  	
  Waiver of Stay, Extension or Usury Laws

  	
  44

  
	
  Section 4.11

  	
  Limitations on Transactions with Affiliates

  	
  45

  
	
  Section 4.12

  	
  Limitation on Incurrence of Additional Indebtedness

  	
  45

  
	
  Section 4.13

  	
  Limitation on Dividend and Other Payment Restrictions
  Affecting Subsidiaries

  	
  46

  
	
  Section 4.14

  	
  Change of Control

  	
  47

  
	
  Section 4.15

  	
  Limitation on Asset Sales

  	
  49

  
	
  Section 4.16

  	
  [Reserved]

  	
  52

  
	
  Section 4.17

  	
  Limitation on Preferred Stock of Restricted Subsidiaries

  	
  53

  
	
  Section 4.18

  	
  Limitation on Liens

  	
  53

  
	
  Section 4.19

  	
  Limitation of Guarantees by Restricted Subsidiaries

  	
  53

  
	
  Section 4.20

  	
  Conduct of Business

  	
  53

  
	
  Section 4.21

  	
  Covenant Termination

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  SUCCESSOR CORPORATION

  
	
  Section 5.01

  	
  Merger, Consolidation and Sale of Assets

  	
  54

  
	
  Section 5.02

  	
  Successor Corporation Substituted

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
  DEFAULT AND REMEDIES

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Events of Default

  	
  55

  
	
  Section 6.02

  	
  Acceleration

  	
  57

  
	
  Section 6.03

  	
  Other Remedies

  	
  58

  
	
  Section 6.04

  	
  Waiver of Past Defaults

  	
  58

  
	
  Section 6.05

  	
  Control by Majority

  	
  58

  
	
  Section 6.06

  	
  Limitation on Suits

  	
  58

  
	
  Section 6.07

  	
  Rights of Holders To Receive Payment

  	
  59

  
	
  Section 6.08

  	
  Collection Suit by Trustee

  	
  59

  
	
  Section 6.09

  	
  Trustee May File Proofs of Claim

  	
  59

  
	
  Section 6.10

  	
  Priorities

  	
  60

  

 

ii

 

	
  Section 6.11

  	
  Undertaking for Costs

  	
  60

  
	
  Section 6.12

  	
  Expenses and Services After an Event of Default

  	
  60

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
  Duties of Trustee

  	
  60

  
	
  Section 7.02

  	
  Rights of Trustee

  	
  62

  
	
  Section 7.03

  	
  Individual Rights of Trustee

  	
  63

  
	
  Section 7.04

  	
  Trustee’s Disclaimer

  	
  63

  
	
  Section 7.05

  	
  Notice of Default

  	
  63

  
	
  Section 7.06

  	
  Reports by Trustee to Holders

  	
  64

  
	
  Section 7.07

  	
  Compensation and Indemnity

  	
  64

  
	
  Section 7.08

  	
  Replacement of Trustee

  	
  65

  
	
  Section 7.09

  	
  Successor Trustee by Merger, Etc.

  	
  66

  
	
  Section 7.10

  	
  Eligibility; Disqualification

  	
  66

  
	
  Section 7.11

  	
  Preferential Collection of Claims Against the Company

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  DISCHARGE OF INDENTURE; DEFEASANCE

  
	
   

  	
   

  	
   

  
	
  Section 8.01

  	
  Termination of the Company’s Obligations

  	
  67

  
	
  Section 8.02

  	
  Acknowledgment of Discharge by Trustee

  	
  69

  
	
  Section 8.03

  	
  Application of Trust Money

  	
  69

  
	
  Section 8.04

  	
  Repayment to the Company

  	
  69

  
	
  Section 8.05

  	
  Reinstatement

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  AMENDMENTS, SUPPLEMENTS AND WAIVERS

  
	
   

  	
   

  	
   

  
	
  Section 9.01

  	
  Without Consent of Holders

  	
  70

  
	
  Section 9.02

  	
  With Consent of Holders

  	
  70

  
	
  Section 9.03

  	
  Compliance with TIA

  	
  71

  
	
  Section 9.04

  	
  Revocation and Effect of Consents

  	
  71

  
	
  Section 9.05

  	
  Notation on or Exchange of Notes

  	
  72

  
	
  Section 9.06

  	
  Trustee To Sign Amendments, Etc.

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  [RESERVED]

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  GUARANTEE OF NOTES

  
	
   

  	
   

  	
   

  
	
  Section 11.01

  	
  Unconditional Guarantee

  	
  73

  
	
  Section 11.02

  	
  Limitations
  on Guarantees

  	
  74

  

 

iii

 

	
  Section 11.03

  	
  Execution and Delivery of Guarantee

  	
  74

  
	
  Section 11.04

  	
  Release of a Guarantor

  	
  74

  
	
  Section 11.05

  	
  Waiver of Subrogation

  	
  75

  
	
  Section 11.06

  	
  Immediate Payment

  	
  76

  
	
  Section 11.07

  	
  No Set-Off

  	
  76

  
	
  Section 11.08

  	
  Obligations Absolute

  	
  76

  
	
  Section 11.09

  	
  Obligations Continuing

  	
  76

  
	
  Section 11.10

  	
  Obligations Not Reduced

  	
  76

  
	
  Section 11.11

  	
  Obligations Reinstated

  	
  77

  
	
  Section 11.12

  	
  Obligations Not Affected

  	
  77

  
	
  Section 11.13

  	
  Waiver

  	
  78

  
	
  Section 11.14

  	
  No Obligation To Take Action Against the Company

  	
  78

  
	
  Section 11.15

  	
  Dealing with the Company and Others

  	
  78

  
	
  Section 11.16

  	
  Default and Enforcement

  	
  79

  
	
  Section 11.17

  	
  Amendment, Etc.

  	
  79

  
	
  Section 11.18

  	
  Acknowledgment

  	
  79

  
	
  Section 11.19

  	
  Costs and Expenses

  	
  79

  
	
  Section 11.20

  	
  No Waiver; Cumulative Remedies

  	
  79

  
	
  Section 11.21

  	
  Guarantee in Addition to Other Obligations

  	
  79

  
	
  Section 11.22

  	
  Severability

  	
  79

  
	
  Section 11.23

  	
  Successors and Assigns

  	
  80

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII

  
	
  [RESERVED]

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 13.01

  	
  TIA Controls

  	
  80

  
	
  Section 13.02

  	
  Notices

  	
  80

  
	
  Section 13.03

  	
  Communications by Holders with Other Holders

  	
  81

  
	
  Section 13.04

  	
  Certificate and Opinion as to Conditions Precedent

  	
  81

  
	
  Section 13.05

  	
  Statements Required in Certificate or Opinion

  	
  81

  
	
  Section 13.06

  	
  Rules by Trustee, Paying Agent, Registrar

  	
  82

  
	
  Section 13.07

  	
  Legal Holidays

  	
  82

  
	
  Section 13.08

  	
  Governing Law

  	
  82

  
	
  Section 13.09

  	
  No Adverse Interpretation of Other Agreements

  	
  82

  
	
  Section 13.10

  	
  No Recourse Against Others

  	
  82

  
	
  Section 13.11

  	
  Successors

  	
  82

  
	
  Section 13.12

  	
  Duplicate Originals

  	
  82

  
	
  Section 13.13

  	
  Severability

  	
  82

  
	
  Section 13.14

  	
  Independence
  of Covenants

  	
  82

  

 

iv

 

	
  Exhibit A

  	
  —

  	
  Form of Note

  
	
  Exhibit B

  	
  —

  	
  Form of Legend for Global Notes

  
	
  Exhibit C

  	
  —

  	
  Form of Transfer Certificates

  
	
  Exhibit D

  	
  —

  	
  Form of IAI Transfer Certificate

  
	
  Exhibit E

  	
  —

  	
  Form of Guarantee

  

 

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

 

v

 

INDENTURE, dated as of June      ,
2009, among HUNTSMAN INTERNATIONAL LLC, a Delaware limited liability company
(the “Company”), each of the Guarantors named herein, as guarantors, and [l], a national
banking association, as trustee (the “Trustee”).

 

The Company has duly
authorized the creation of an issue of 5 1⁄2 % 
Senior Notes due 2016 (the “Notes”). 
All things necessary to make the Notes, when duly issued and executed by
the Company and authenticated and delivered hereunder, the valid and binding
obligations of the Company and to make this Indenture a valid and binding
agreement of the Company have been done.

 

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

 

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01           Definitions.

 

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

 

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

 

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

 

“Affiliate” means, with respect
to any specified Person, any other Person who directly or indirectly through
one or more intermediaries controls, or is controlled by, or is under common
control with, such specified Person.  The
term “control” means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative of the
foregoing; provided, however, that none of the Initial Purchasers
or their Affiliates shall be deemed to be an Affiliate of the Company.

 

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

 

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

 

 

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

 

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

 

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

 

“Asset Sale” means any
direct or indirect sale, issuance, conveyance, transfer, lease (other than
operating leases entered into in the ordinary course of business), assignment
or other transfer for value by the Company or any of its Restricted
Subsidiaries (including any Sale and Leaseback Transaction) to any Person other
than the Company or a Restricted Subsidiary of the Company of (a) any
Capital Stock of any Restricted Subsidiary of the Company; or (b) any
other property or assets of the Company or any Restricted Subsidiary of the
Company other than in the ordinary course of business; provided, however,
that Asset Sales shall not include (i) a transaction or series of related
transactions for which the Company or its Restricted Subsidiaries receive
aggregate consideration of less than $50 million, (ii) sales, pledges,
conveyances or other transfers of accounts receivable or participations or
other interests therein and related assets (including contract rights) of the
type specified in the definition of “Qualified Securitization Transaction”
directly or indirectly to a Securitization Entity for the Fair Market Value
thereof, (iii) sales or grants of licenses to use the patents, trade
secrets, know-how and other intellectual property of the Company or any of its
Restricted Subsidiaries to the extent that such license does not prohibit the
Company or any of its Restricted Subsidiaries from using the technologies
licensed or require the Company or any of its Restricted Subsidiaries to pay
any fees for any such use, (iv) the sale, lease, conveyance, disposition
or other transfer (A) of all or substantially all of the assets of the
Company as permitted under Section 5.01, (B) of any Capital Stock or
other ownership interest in or assets or property of an Unrestricted Subsidiary
or a Person which is not a Subsidiary, (C) pursuant to any foreclosure of
assets or other remedy provided by applicable law to a creditor of the Company
or any Subsidiary of the Company with a Lien on such assets, which Lien is
permitted under this Indenture; provided that such foreclosure or other
remedy is conducted in a commercially reasonable manner or in accordance with
any bankruptcy law, (D) involving only Cash Equivalents, Foreign Cash
Equivalents or inventory in the ordinary course of business or obsolete or worn
out property or property that is no longer useful in the conduct of the
business of the Company or its Restricted Subsidiaries in the ordinary course
of business consistent with past practices of the Company or such Restricted
Subsidiaries or (E) including only the lease or sublease of any real or
personal property in the ordinary course of business, (v) the consummation
of any transaction in accordance with the terms of Sections 4.03 and 5.01
hereof and (vi) Permitted Investments.

 

“Bankruptcy Law” means Title
11, United States Code or any similar federal, state or 

 

2

 

foreign law for the relief
of debtors.

 

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

 

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

 

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

 

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

 

“Capitalized Lease” means a
lease that is required to be classified and accounted for as a capitalized
lease under GAAP.

 

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

 

“Cash Equivalents” means (i) a
marketable obligation, maturing within two years after issuance thereof, issued
or guaranteed by the United States of America or an instrumentality or agency
thereof, (ii) a certificate of deposit or banker’s acceptance, maturing
within one year after issuance thereof, issued by any lender under the Credit
Facilities, or a national or state bank or trust company or a European,
Canadian or Japanese bank, in each case having capital, surplus and undivided
profits of at least $100,000,000 and whose long-term unsecured debt has a
rating of “A” or better by S&P or A2 or better by Moody’s or the equivalent
rating by any other nationally recognized rating agency (provided that
the aggregate face amount of all Investments in certificates of deposit or
bankers’ acceptances issued by the principal offices of or branches of such
European or Japanese banks located outside the United States of America shall
not at any time exceed 33 1/3% of all Investments described in this
definition), (iii) open market commercial paper, maturing within 270 days
after issuance thereof, which has a rating of A1 or better by S&P or P1 or
better by Moody’s or the equivalent rating by any other nationally recognized
rating agency, (iv) repurchase agreements and reverse repurchase
agreements with a term not in excess of one year with any financial institution
which has been elected as a primary government securities dealer by the Federal
Reserve Board or whose securities are rated AA- or better by S&P or Aa3 or
better by Moody’s or the equivalent rating by any other nationally 

 

3

 

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

 

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

 

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

 

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

 

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

 

“Clearing Agency” has
meaning provided in Section 2.15.

 

“Clearstream” shall mean
Clearstream Banking S.A.

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

“Consolidated Fixed Charge
Coverage Ratio” means, with respect to any Person, the ratio of Consolidated
EBITDA of such Person during the four full fiscal quarters for which financial
statements are available as provided pursuant to Section 4.09 (the “Four
Quarter Period”) ending on or prior to the date of the transaction giving rise
to the need to calculate the Consolidated Fixed Charge Coverage Ratio (the “Transaction
Date”) to Consolidated Fixed Charges of such Person for the Four Quarter
Period.  In addition to and without
limitation of the foregoing, for purposes of this definition, “Consolidated
EBITDA” and “Consolidated Fixed Charges” shall be calculated after giving
effect on a pro forma basis for the period of such calculation to (i) the
incurrence or repayment or other reduction or discharge of any Indebtedness of
such Person or any of its Restricted Subsidiaries (and the application of the
proceeds thereof) giving rise to the need to make such calculation and any
incurrence or repayment of other Indebtedness (and the application of the
proceeds thereof), other than the incurrence or repayment of Indebtedness in
the ordinary course of business for working capital purposes pursuant to
working capital facilities, occurring during the Four Quarter Period or at any
time subsequent to the last day of the Four Quarter Period and prior to the
Transaction Date, as if such incurrence or repayment, as the case may be (and
the application of the proceeds thereof), occurred on the first day of the Four
Quarter Period and (ii) any asset sales (other than asset sales (A) in the
ordinary course of  business or (B) involving
a nominal amount of gross assets of less than $25 million) or Asset
Acquisitions (including any Asset Acquisition giving rise to the need to make
such calculation) occurring during the Four Quarter Period or at any time
subsequent to the last day of the Four 

 

5

 

Quarter Period and on or
prior to the Transaction Date, as if such Asset Sale or Asset Acquisition
(including the incurrence, assumption or liability for any such Acquired
Indebtedness) occurred on the first day of the Four Quarter Period.  If such Person or any of its Restricted
Subsidiaries directly or indirectly guarantees Indebtedness of a Person other
than the Company or a Restricted Subsidiary, the preceding sentence shall give
effect to the incurrence of such guaranteed Indebtedness as if such Person or
any Restricted Subsidiary of such Person had directly incurred or otherwise
assumed such guaranteed Indebtedness. 
Furthermore, in calculating “Consolidated Fixed Charges” for purposes of
determining the denominator (but not the numerator) of this “Consolidated Fixed
Charge Coverage Ratio,” (1) interest on outstanding Indebtedness determined on
a fluctuating basis as of the Transaction Date and which will continue to be so
determined thereafter shall be deemed to have accrued at a fixed rate per annum
equal to the rate of interest on such Indebtedness in effect on the Transaction
Date; (2) if interest on any Indebtedness actually incurred on the Transaction
Date may optionally be determined at an interest rate based upon a factor of a
prime or similar rate, a eurocurrency interbank offered rate, or other rates,
then the interest rate in effect on the Transaction Date will be deemed to have
been in effect during the Four Quarter Period; and (3) notwithstanding clause (1)
above, interest on Indebtedness determined on a fluctuating basis, to the
extent such interest is covered by agreements relating to Interest Swap
Obligations, shall be deemed to accrue at the rate per annum resulting after
giving effect to the operation of such agreements.

 

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

 

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

 

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

 

“Consolidated Net Income”
means, with respect to any Person, for any period, the sum 

 

6

 

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

 

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

 

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

 

“Corporate Trust Office”
means the principal office of the Trustee at which at any time its corporate
trust business shall be administered, or such other address as the Trustee may 

 

7

 

designate from time to time
by notice to the Holders and the Company, or the principal corporate trust
office of any successor Trustee (or such other address as a successor Trustee
may designate from time to time by notice to the Holders and the Company).

 

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

 

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

 

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

 

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

 

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

 

“Depositary” means DTC.

 

“Designated Date” means November
13, 2006.

 

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

 

“Disqualified Capital Stock”
means that portion of any Capital Stock which, by its terms (or by the terms of
any security into which it is convertible or for which it is exchangeable), or 

 

8

 

upon the happening of any
event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or is redeemable at the sole option of the holder
thereof on or prior to the final maturity date of the Notes.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

that the full faith and
credit of such nation is pledged in support of such debt securities or such
debt securities constitute a general obligation of such nation.

 

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

 

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

 

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

 

“Global Security” means a Restricted
Global Security or Unrestricted Global Security.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10

 

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

 

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

 

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

 

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

 

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

 

11

 

“Initial Notes” means the $600,000,000
in aggregate principal amount of 5 1⁄2% Senior Notes due 2016 of the Company that
are issued on the Issue Date.

 

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

 

“Initial Purchasers” means
Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC.

 

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

 

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

 

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

 

“Investment” means, with
respect to any Person, any direct or indirect loan or other extension of credit
(including, without limitation, a guarantee) or capital contribution to (by
means of any transfer of cash or other property to others or any payment for
property or services for the account or use of others), or any purchase or acquisition
by such Person of any Capital Stock, bonds, notes, debentures or other
securities or evidences of Indebtedness issued by, any other Person.  “Investment” excludes extensions of trade
credit by the Company and its Restricted Subsidiaries on commercially
reasonable terms in accordance with normal trade practices of the Company or
such Restricted Subsidiary, as the case may be. 
For the purposes of Section 4.03 hereof, (i) “Investment” shall include
and be valued at the Fair Market Value of the net assets of any Restricted
Subsidiary at the time that such Restricted Subsidiary is designated an
Unrestricted Subsidiary after the Designated Date and shall exclude the Fair
Market Value of the net assets of any Unrestricted Subsidiary at the time that
such Unrestricted Subsidiary is designated a Restricted Subsidiary and (ii) the
amount of any Investment is the original cost of such Investment plus the cost
of all additional Investments by the Company or any of its Restricted Subsidiaries,
without any adjustments for increases or decreases in value, or write-ups,
write-downs or write-offs with respect to such Investment, reduced by the
payment of dividends or distributions in connection with such Investment or any
other amounts received in respect of such Investment; provided that no
such payment of dividends or distributions or receipt of any such other amounts
shall reduce the amount of any Investment if such payment of dividends or
distributions or receipt of any such amounts would be included in Consolidated
Net Income.  If the Company or any
Restricted Subsidiary of the Company sells or otherwise disposes of any Common
Stock of any direct or indirect Restricted Subsidiary of the Company such that,
after giving effect to any such sale or disposition, the Company no longer
owns, 

 

12

 

directly or indirectly,
greater than 50% of the outstanding Common Stock of such Restricted Subsidiary,
the Company shall be deemed to have made an Investment on the date of any such
sale or disposition equal to the Fair Market Value of the Common Stock of such
Restricted Subsidiary not sold or disposed of.

 

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

 

“Issue Date” means June 23,
2009.

 

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

 

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

 

“Maturity Date” means June 30,
2016.

 

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

 

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

 

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

 

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

 

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

 

13

 

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

 

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

 

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

 

“Notes” means, the Initial
Notes, any Additional Notes and the Exchange Notes.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(i)            Indebtedness represented by the Initial Notes, the
Exchange Notes with respect to the Initial Notes and the related Guarantees;

 

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

 

14

 

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

 

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

 

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

 

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

 

(vii)         Indebtedness of the Company to a Restricted
Subsidiary for so long as such Indebtedness is held by a Restricted Subsidiary,
in each case subject to no Lien (other than Liens securing intercompany notes
pledged under the Credit Facilities); provided that (a) any Indebtedness
of the Company to any Restricted Subsidiary (other than pursuant to notes
pledged under the Credit Facilities) is unsecured and subordinated, pursuant to
a written agreement, to the Company’s obligations under this Indenture and the
Notes and (b) if as of any date any Person other than a Restricted Subsidiary
owns or holds any such Indebtedness or any Person holds a Lien in respect of
such Indebtedness (other than pledges securing the Credit Facilities), such
date shall be deemed the incurrence of Indebtedness not constituting Permitted
Indebtedness by the Company;

 

15

 

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

 

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

 

(x)            Refinancing Indebtedness;

 

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

 

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

 

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

 

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

 

(xv)         Indebtedness of Foreign Subsidiaries that are
Restricted Subsidiaries to the extent that the aggregate outstanding amount of
Indebtedness incurred by such Foreign Subsidiaries under this clause (xv) does
not exceed at any one time an amount equal to the sum of (A) 80% of the
consolidated book value of the accounts receivable of 

 

16

 

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

 

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

 

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

 

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

 

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

 

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

 

(xxi)         additional Indebtedness of the Company and its
Restricted Subsidiaries in an aggregate principal amount not to exceed the
greater of $200 million or 2% of Total Assets of the Company at any one time
outstanding; and

 

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

 

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

 

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

 

17

 

paid
under the terms of the instrument governing such HI Refinanced Debt and the
amount of reasonable expenses incurred by the Company, in each case in connection
with the Refinancing of such HI Refinanced Debt;

 

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

 

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

 

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

 

or

 

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

 

provided that:

 

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

 

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

 

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

 

For purposes of determining
compliance with Section 4.12, in the event that an item of Indebtedness meets
the criteria of more than one of the categories of Permitted Indebtedness described
in clauses (i) through (xxii) above or is entitled to be incurred pursuant to
the 

 

18

 

Consolidated Fixed Charge
Coverage Ratio provisions of Section 4.12, the Company shall, in its sole
discretion, classify (or later reclassify) such item of Indebtedness in any
manner that complies with Section 4.12; provided that $1.4 billion of Indebtedness outstanding under
the Credit Facilities on the Issue Date (and any refinancings thereof) shall be
deemed to have been incurred pursuant to clause (ii) above. Accrual of
interest, accretion or amortization of original issue discount, the payment of
interest on any Indebtedness in the form of additional Indebtedness with the
same terms, and the payment of dividends on Disqualified Capital Stock in the
form of additional shares of the same class of Disqualified Capital Stock will
not be deemed to be an incurrence of Indebtedness or an issuance of
Disqualified Capital Stock for purposes of Section 4.12.

 

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

 

19

 

used or marketed by the
Company and its Restricted Subsidiaries and/or the joint venture partner, and
business reasonably related thereto; (xi) Investments by Foreign Subsidiaries
in Foreign Cash Equivalents; (xii) loans to any Huntsman Parent Company for the
purposes described in clause (7) of the second paragraph of Section 4.03 which,
when aggregated with the payment made under such clause, will not exceed $10
million in any fiscal year; (xiii) any Indebtedness of the Company to any of its
Subsidiaries or other entities formed as necessary or customary under the laws
of the relevant jurisdiction incurred in connection with the conveyance, pledge
or other transfer of accounts receivable or participations or interests therein
and related assets directly or indirectly to the Company by any such Subsidiary
which assets are subsequently conveyed, pledged or otherwise transferred,
directly or indirectly, by the Company to a Securitization Entity in a
Qualified Securitization Transaction; (xiv) Investments by the Company or any
of its Restricted Subsidiaries in a Permitted Joint Venture, so long as:  (A) such Permitted Joint Venture does not
have any Indebtedness for borrowed money which would be required to be
reflected on a balance sheet as debt under GAAP at any time on or after the
date of such Investment (other than Indebtedness owing to the equity holders of
such Permitted Joint Venture, the Company or any Restricted Subsidiary); (B) the
documentation governing such Permitted Joint Venture does not contain a
restriction on distributions to the Company or its Restricted Subsidiaries; and
(C) after giving pro forma effect to such Investment, the
Company would be permitted to incur $1.00 of additional Indebtedness other than
Permitted Indebtedness under Section 4.12; (xv) additional Investments in an
aggregate amount not exceeding $150 million at any one time outstanding; and
(xvi) the incurrence of Guarantees permitted by clause (xxii) of the definition
of Permitted Indebtedness.

 

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

 

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

 

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

 

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

 

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

 

“Permitted Tax Distribution”
for any fiscal year means any payments in compliance with 

 

20

 

clause (6) of the second
paragraph under Section 4.03.

 

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

 

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

 

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

 

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

 

“Private Placement Legend”
means the legend initially set forth on the Notes in the form set forth for
Restricted Securities on Exhibit A.

 

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

 

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

 

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

 

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

 

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

 

21

 

necessarily or customarily
granted in the relevant jurisdiction in connection with asset securitization
transactions involving accounts receivable. 
Following the Initial Public Equity Offering of a Huntsman Public
Parent, references in the foregoing definition to the “Company” shall be deemed
also to refer to such Huntsman Public Parent.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Refinancing Indebtedness”
means any Refinancing by the Company or any Restricted Subsidiary of the
Company of Indebtedness incurred in accordance with the Fixed Charge Coverage Ratio
test set forth in Section 4.12 or Indebtedness described in clauses (i), (iii),
(x), (xiv)(B) or (xv) of the definition of “Permitted Indebtedness,” in each
case that does not (1) result in an increase in the aggregate principal amount
of Indebtedness of such Person as of the date of such proposed Refinancing
(plus the amount of any premium required to be paid under the terms of the
instrument governing such Indebtedness and plus the amount of reasonable
expenses incurred by the Company in connection with such Refinancing) or (2) create
Indebtedness with (A) a Weighted Average Life to Maturity that is less than the
Weighted Average Life to Maturity of the Indebtedness being Refinanced or (B) a
final maturity earlier than the final maturity of the Indebtedness being
Refinanced; provided that (x) if such Indebtedness being Refinanced is
Indebtedness solely of the Company, then such Refinancing Indebtedness shall be
Indebtedness solely of the Company and (y) if such Indebtedness being
Refinanced is subordinate or junior to the Notes, then such Refinancing
Indebtedness shall be subordinate to the Notes at least to the same extent and
in the same manner as the Indebtedness being Refinanced.

 

“Registrar” has the meaning
provided in Section 2.03.

 

“Registration Rights
Agreement” means the Exchange and Registration Rights Agreement dated June 23,
2009 among the Company, the Guarantors and the Initial Purchasers.

 

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

 

22

 

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

 

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

 

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

 

“Restricted Payment” means
to

 

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

 

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

 

3.             make any principal payment
on, purchase, defease, redeem, prepay, decrease or otherwise acquire or retire
for value, prior to any scheduled final maturity, scheduled repayment or
scheduled sinking fund payment, any Indebtedness of the Company or any
Guarantor that is subordinate or junior in right of payment to the Notes or
such Guarantor’s Guarantee, as the case may be, or

 

4.             make any Investment other
than Permitted Investments.

 

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

 

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

 

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

 

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

 

23

 

funds have been or are to be
advanced by such Person on the security of such property.

 

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

 

“Securitization Entity”
means a Wholly Owned Subsidiary of the Company (or Tioxide Group or Holdings
U.K. or another Person in which the Company or any Subsidiary of the Company
makes an Investment and to which the Company or any Subsidiary of the Company
transfers, directly or indirectly, accounts receivable or participations or interests
therein or related assets) which engages in no activities other than in
connection with the financing of accounts receivable and which is designated by
the Board of Managers of the Company (as provided below) as a Securitization
Entity (a) no portion of the Indebtedness or any other Obligations (contingent
or otherwise) of which (i) is guaranteed by the Company or any Subsidiary of
the Company (other than the Securitization Entity)(excluding guarantees of
Obligations (other than the principal of, and interest on, Indebtedness))
pursuant to Standard Securitization Undertakings, (ii) is recourse to or
obligates the Company or any Subsidiary of the Company (other than the
Securitization Entity) in any way other than pursuant to Standard
Securitization Undertakings or (iii) subjects any property or asset of the
Company or any Subsidiary of the Company (other than the Securitization
Entity), directly or indirectly, contingently or otherwise, to the satisfaction
thereof, other than pursuant to Standard Securitization Undertakings and other
than any interest in the accounts receivable and related assets being financed
(whether in the form of any equity interest in such assets or subordinated
indebtedness payable primarily from such financed assets) retained or acquired
by the Company or any Subsidiary of the Company, (b) with which neither the
Company nor any Subsidiary of the Company has any material contract, agreement,
arrangement or understanding other than on terms no less favorable to the
Company or such Subsidiary than those that might be obtained at the time from
Persons that are not Affiliates of the Company, other than fees payable in the
ordinary course of business in connection with servicing receivables of such
entity, and (c) to which neither the Company nor any Subsidiary of the Company
has any obligation to maintain or preserve such entity’s financial condition or
cause such entity to achieve certain levels of operating results.  Any such designation by the Board of Managers
of the Company shall be evidenced to the Trustee by filing with the Trustee a
certified copy of the Board Resolution of the Board of Managers of the Company
giving effect to such designation and an officers’ certificate certifying that
such designation complied with the foregoing conditions; provided that
Huntsman Receivables Finance LLC shall be deemed to be a Securitization Entity
as of the Issue Date.  Following the
Initial Public Equity Offering of a Huntsman Public Parent, references in the
foregoing definition to the “Company” shall be deemed also to refer to such
Huntsman Public Parent.

 

“Senior Debt” means
Indebtedness of the Company or any Guarantor that is not Subordinated
Indebtedness.

 

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

 

24

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Trust Officer” means any
officer or assistant officer of the Trustee assigned by the Trustee to
administer its corporate trust matters or, in the case of a successor trustee,
an officer assigned to the department, division or group performing the
corporate trust work of such successor.

 

“Trustee” means the party
named as such in this Indenture until a successor replaces it in 

 

25

 

accordance with the provisions
of this Indenture and thereafter means such successor.

 

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

 

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

 

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

 

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

 

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

 

“Weighted Average Life to
Maturity” means, when applied to any Indebtedness at any 

 

26

 

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

 

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

 

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

 

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

 

“indenture securities” means
the Notes.

 

“indenture to be qualified”
means this Indenture.

 

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

 

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

 

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

 

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

 

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

 

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

 

(3)           “or” is not exclusive;

 

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

 

27

 

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

 

ARTICLE II

THE NOTES

 

Section 2.01           Form and Dating.  Notes and the certificate of authentication
relating thereto shall be substantially in the form of Exhibit A hereto.  The Notes may have notations, legends or
endorsements required by law, stock exchange rule or usage.  Notes that are Restricted Securities
(including the Initial Notes) shall bear the Private Placement Legend.  Each Note shall be dated the date of issuance
and shall show the date of its authentication. 
Each Note shall have an executed Guarantee from each of the Guarantors
endorsed thereon substantially in the form of Exhibit E hereto.

 

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

 

(a)           Restricted Global Securities.

 

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

 

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

 

(b)           [Reserved].

 

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

 

Section 2.02           Execution and Authentication; Aggregate Principal
Amount.  A duly authorized Officer of
the Company shall execute the Notes for the Company, and a duly authorized
officer of each Guarantor shall sign the Guarantees for the Guarantors, in each
case by manual or facsimile signature.

 

28

 

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

 

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

 

On the date hereof, upon
Company Order the Trustee shall authenticate and deliver Notes for original
issue in an initial aggregate principal amount not to exceed $600,000,000.  In addition, at any time, from time to time,
the Trustee shall authenticate and deliver Exchange Notes in the form of
Unrestricted Notes, upon a written notice of the Company for original issuance
in the aggregate principal amount specified in such order for original issue in
the aggregate principal amount, provided that Exchange Notes shall be issuable
only upon the valid surrender for cancellation of Global Securities or other
Notes of a like aggregate principal amount. 
Additional Notes may be issued in accordance with Sections 2.01 and
2.18.  Any such Company Order may specify
the amount of the Notes to be authenticated and the date on which the original
issue of Notes is to be authenticated, whether such Notes are Unrestricted
Notes and whether (subject to Section 2.01) the Notes are to be issued as
Physical Notes or Global Notes and such other information as the Trustee may
reasonably request and, in the case of an issuance of Additional Notes pursuant
to Section 2.18 after the Issue Date, shall certify that such issuance will not
be prohibited by Section 4.12.

 

Notwithstanding the
foregoing, all Notes issued under this Indenture shall vote and consent
together on all matters (as to which any of such Notes may vote or consent) as
one class.

 

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

 

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

 

Section 2.03           Registrar and Paying Agent.  The Company shall maintain an office or
agency, where (a) Notes may be presented or surrendered for registration of transfer
or for exchange (“Registrar”), (b) Notes may be presented or surrendered for
payment  and (c) notices and demands to
or upon the Company in respect of the Notes and this Indenture may be
served.  The Paying Agent shall not be
the Company or an Affiliate of the Company. 
The Registrar shall keep a register of the Notes and of their transfer
and exchange.  The Company, upon notice
to the Trustee, may have one or more co-Registrars and one or more additional
paying agents reasonably acceptable to the Trustee.  The term “Paying Agent” includes any
additional paying agent.  The Company may
change the Paying Agent or Registrar without notice to any Holder.

 

29

 

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

 

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

 

Section 2.04           Paying Agent To Hold Assets in Trust.  The Company shall require each Paying Agent
other than the Trustee to agree in writing that each Paying Agent shall hold in
trust for the benefit of the Holders or the Trustee all assets held by the
Paying Agent for the payment of principal of, premium, if any, or interest on,
the Notes (whether such assets have been distributed to it by the Company or
any other obligor on the Notes), and shall notify the Trustee of any default by
the Company (or any other obligor on the Notes) in making any such payment.  The Company at any time may require a Paying
Agent to distribute all assets held by it to the Trustee and account for any
assets disbursed and the Trustee may at any time during the continuance of any
payment Default, upon written request to a Paying Agent, require such Paying
Agent to distribute all assets held by it to the Trustee and to account for any
assets distributed.  Upon distribution to
the Trustee of all assets that shall have been delivered by the Company to the
Paying Agent and the completion of any accounting required to be made
hereunder, the Paying Agent shall have no further liability for such assets.

 

Section 2.05           Holder Lists.  The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of the Holders and shall otherwise comply with TIA
§312(a).  If the Trustee is not the
Registrar or Paying Agent, the Company shall furnish annually on each May 15
and at such other times as the Trustee may request in writing a list in such
form as the Trustee may reasonably require of the names and addresses of the
Holders, which list may be conclusively relied upon by the Trustee.

 

Section 2.06           Transfer and Exchange.  Subject to Sections 2.15 and 2.16, when Notes
are presented to the Registrar or a co-Registrar with a request to register the
transfer of such Notes or to exchange such Notes for an equal principal amount
of Notes of other authorized denominations, the Registrar or co-Registrar shall
register the transfer or make the exchange as requested if its requirements for
such transaction are met; provided, however, that the Notes
presented or surrendered for transfer or exchange shall be duly endorsed or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Registrar or co-Registrar, duly executed by the Holder thereof
or his attorney duly authorized in writing. 
To permit registrations of transfers and exchanges, the Company shall
execute and the Trustee shall authenticate Notes at the Registrar’s or co-Registrar’s
written request.  No service charge shall
be made for any registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith.  The Registrar or co-Registrar shall not be
required to register the transfer of or 

 

30

 

exchange of any Note (i) during a period beginning
at the opening of business 15 days before the mailing of a notice of redemption
pursuant to Section 3.03 and paragraph 5 of the Notes and ending at the close
of business on the day of such mailing and (ii) selected for redemption in
whole or in part pursuant to Article Three, except the unredeemed portion of
any Note being redeemed in part.

 

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

 

Section 2.07           Replacement Notes.  If a mutilated Note is surrendered to the Trustee
or if the Holder of a Note claims that the Note has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a
replacement Note and each of the Guarantors shall execute a Guarantee thereon
if the Trustee’s requirements are met. 
If required by the Trustee or the Company, such Holder must provide an
indemnity bond or other indemnity, sufficient in the reasonable judgment of the
Company, the Guarantors and the Trustee, to protect the Company, the
Guarantors, the Trustee or any Agent from any loss which any of them may suffer
if a Note is replaced.  The Company and
the Trustee may charge such Holder for their reasonable out-of-pocket expenses
in replacing a Note, including reasonable fees and expenses of counsel.  Every replacement Note shall constitute an
additional obligation of the Company and every replacement Guarantee shall
constitute an additional obligation of the Guarantors.

 

Section 2.08           Outstanding Notes.  Notes outstanding at any time are all the
Notes that have been authenticated by the Trustee except those cancelled by it
or a Registrar, those delivered to it or a Registrar for cancellation and those
described in this Section as not outstanding. 
Subject to Section 2.09, a Note does not cease to be outstanding because
the Company or any of its Affiliates holds the Note.

 

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

 

If on a Redemption Date or
the Maturity Date, as applicable, the Paying Agent holds U.S. Legal Tender,
U.S. Government Obligations, or a combination thereof sufficient to pay all of
the principal, premium, if any, and interest due on the Notes payable on that
date, then on and after that date such Notes cease to be outstanding and interest
on them ceases to accrue.

 

If on any date which is no
earlier than 60 days prior to a Redemption Date, the Company has irrevocably
deposited in trust with the Trustee U.S. Legal Tender, U.S. Government
Obligations or a combination thereof in an amount sufficient to pay all of the
principal, premium, if any, and interest due on the Notes payable on such
Redemption Date, together with irrevocable instructions from the Company
directing the Trustee to apply such funds to the payment thereof 

 

31

 

on such Redemption Date
pursuant to the terms of this Indenture, then and after the date of such
deposit such Notes shall be deemed to be not outstanding for purposes of
determining whether the Holders of the required aggregate principal amount of
Notes have concurred in any direction, waiver, consent or notice which requires
the consent of at least a majority in aggregate principal amount of Notes then
outstanding.

 

Section 2.09           Treasury Notes.  In determining whether the Holders of the
required aggregate principal amount of Notes have concurred in any direction,
waiver, consent or notice, Notes owned by the Company or an Affiliate shall be
considered as though they are not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Notes which the Trustee actually knows are
so owned shall be so considered.  The
Company shall notify the Trustee, in writing, when it or any of its Affiliates
repurchases or otherwise acquires Notes, of the aggregate principal amount of
such Notes so repurchased or otherwise acquired.

 

Section 2.10           [Intentionally Omitted].

 

Section 2.11           Cancellation.  The Company at any time may deliver Notes to
the Trustee for cancellation.  The
Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for transfer, exchange or payment.  The Trustee, or at the direction of the
Trustee, the Registrar or the Paying Agent, and no one else, shall cancel and
shall dispose all cancelled Securities in accordance with its customary
procedures.  Subject to Section 2.07, the
Company may not issue new Notes to replace Notes that the Company has paid or
delivered to the Trustee for cancellation. 
Notes redeemed shall be cancelled. 
However, if the Company shall acquire any of the Notes, such acquisition
shall not operate as a redemption or satisfaction of the Indebtedness
represented by such Notes unless and until the same are surrendered to the
Trustee for cancellation pursuant to this Section 2.11.

 

Section 2.12           Defaulted Interest.  The Company will pay interest on overdue
principal from time to time on demand at the rate of interest then borne by the
Notes.  The Company shall, to the extent
lawful, pay interest on overdue installments of interest (without regard to any
applicable grace periods) from time to time on demand at the rate of interest
then borne by the Notes, as applicable. 
Interest on the Notes will be computed on the basis of a 360-day year
comprised of twelve 30-day months.

 

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

 

32

 

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

 

Section 2.13                                CUSIP Numbers.  The Company in issuing the Notes may use one
or more “CUSIP” and/or “ISIN” numbers, and if so, the Trustee shall use the
CUSIP and/or “ISIN” numbers in notices of redemption or exchange as a
convenience to Holders; provided, however, that no representation
is hereby deemed to be made by the Trustee as to the correctness or accuracy of
the CUSIP numbers printed in the notice or on the Notes, and that reliance may
be placed only on the other identification numbers printed on the Notes.  The Company shall promptly notify the Trustee
of any change in the CUSIP or “ISIN” number.

 

Section 2.14                                Deposit of Moneys.  Prior to 11:00 a.m. New York City time on
each Interest Payment Date, Maturity Date, Redemption Date, Change of Control
Payment Date, and Net Proceeds Offer Payment Date, the Company shall have
deposited with each Paying Agent in immediately available funds money
sufficient to make cash payments, if any, due on such Interest Payment Date,
Maturity Date, Redemption Date, Change of Control Payment Date, and Net
Proceeds Offer Payment Date, as the case may be, in a timely manner which
permits each Paying Agent to remit payment to the Holders on such Interest
Payment Date, Maturity Date, Redemption Date, Change of Control Payment Date,
and Net Proceeds Offer Payment Date, as the case may be.

 

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

 

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

 

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

 

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

 

33

 

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

 

Section 2.16                                Transfer and Exchange of
Securities.

 

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

 

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

 

(ii)               [Reserved].

 

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

 

34

 

of the Agent Member to be credited with, and the account of the Agent
Member to be debited for, such beneficial interest and (C) a certificate in
substantially the form set forth in Exhibit C given by the Holder of such
beneficial interest, the principal amount of the Restricted Global Security
shall be reduced, and the principal amount of an Unrestricted Global Security
shall be increased, by the principal amount of the beneficial interest in a Restricted
Global Security to be so transferred, in each case by means of an appropriate
adjustment on the records of the Registrar and the Registrar shall instruct DTC
or its authorized representative to make a corresponding adjustment to its
records and to credit or cause to be credited to the account of the Person
specified in such instructions a beneficial interest in an Unrestricted Global
Security having a principal amount equal to the amount so transferred.

 

(iv)           [Reserved].

 

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

 

(b)                                 [Reserved].

 

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

 

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

 

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

 

35

 

in part and any Global Security exchanged pursuant to clause (B) above
may be exchanged in whole or from time to time in part as directed by DTC.  Any Security issued in exchange for a Global
Security or any portion thereof shall be a Global Security, provided
that any such Security so issued that is registered in the name of a Person
other than the appropriate Depositary or a nominee thereof shall not be a
Global Security.

 

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

 

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

 

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

 

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

 

36

 

Section 2.17                                Special Transfer Provisions.

 

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

 

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

 

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

 

The Registrar shall retain
copies of all letters, notices and other written communications received
pursuant to Section 2.15, 2.16 or this Section 2.17 for a period of two years,
after which time such letters, notices and other written communications shall
at the written request of the Company be delivered to the Company.  The Company shall have the right to inspect and
make copies of all such letters, notices or other written communications at any
reasonable time upon the giving of reasonable prior written notice to the
Registrar.

 

Section 2.18                                Issuance of Additional Notes.  The Company shall be entitled to issue Additional
Notes under this Indenture which shall have substantially identical terms as
the Initial Notes, other than with respect to the date of issuance, issue
price, amount of interest payable on the first Interest Payment Date applicable
thereto or upon a registration default as provided under a registration rights
agreement related thereto (and, if such Additional Notes shall be issued in the
form of Exchange Notes, other than with respect to transfer restrictions);
provided that such issuance is not prohibited by Section 4.12.

 

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

 

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

 

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

 

37

 

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

 

ARTICLE III

REDEMPTION

 

Section 3.01                                Notices to Trustee.  If the Company elects to redeem Notes
pursuant to paragraph 5 of the Notes it shall notify the Trustee and the Paying
Agent in writing of the Redemption Date and the aggregate principal amount of
the Notes to be redeemed.  Such notice
must be given at least 30 days prior to the Redemption Date, but shall not be
given more than 60 days before such Redemption Date.  Any such notice may be cancelled at any time
prior to notice of such redemption being mailed to any Holder and shall thereby
be void and of no effect.

 

Section 3.02                                Selection of Notes To Be
Redeemed.  If less
than all the Notes are to be redeemed at any time, selection of such Notes for
redemption will be made by the Trustee in compliance with the requirements of
the principal national securities exchange, if any, on which such Notes are
listed or, if such Notes are not listed on a national securities exchange, on a
pro rata basis, by lot or by such method as the Trustee shall deem fair and
appropriate; provided, however, that no Notes of a principal amount of $2,000
or less shall be redeemed in part.

 

Section 3.03                                Notice of Redemption.  At least 30 days but not more than 60 days
before a Redemption Date, the Company shall mail or cause to be mailed a notice
of redemption by first- class mail to each Holder whose Notes are to be
redeemed at its registered address, with a copy to the Trustee, except that
redemption notices may be mailed more than 60 days prior to a redemption date
if the notice is issued in connection with a defeasance of the notes or a
satisfaction and discharge of this Indenture, in each case in accordance with
this Indenture.  At the Company’s
request, the Trustee shall give the notice of redemption in the Company’s name
and at the Company’s expense provided, however, that the Company
shall deliver to the Trustee, at least 40 days prior to the Redemption Date
(which may be waived by the Trustee), an Officers’ Certificate requesting that
the Trustee give such notice.  Each
notice for redemption shall identify the Notes to be redeemed and shall state:

 

(1)                                  the Redemption Date;

 

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

 

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

 

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

 

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

 

(6)                                  that, unless the Company
defaults in making the redemption 

 

38

 

payment, interest, if any, on Notes called for redemption shall cease
to accrue on and after the Redemption Date and the only remaining right of the
Holders of such Notes is to receive payment of the Redemption Price upon
surrender to the Paying Agent of the Notes redeemed;

 

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

 

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

 

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

 

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

 

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

 

Section 3.04                                Effect of Notice of
Redemption.  Once notice
of redemption is mailed in accordance with Section 3.03, Notes called for
redemption become due and payable on the Redemption Date and at the Redemption
Price.  Upon surrender to the Trustee or
Paying Agent, such Notes called for redemption shall be paid at the Redemption
Price, but installments of interest, the maturity of which is on or prior to
the Redemption Date, shall be payable to Holders of record at the close of
business on the relevant record dates referred to in the Notes.  Interest shall accrue on or after the
Redemption Date and shall be payable only if the Company defaults in payment of
the Redemption Price.

 

Section 3.05                                Deposit of Redemption Price.  On or before the Redemption Date, the Company
shall deposit with the Paying Agent U.S. Legal Tender sufficient to pay the
Redemption Price of all Notes to be redeemed on that date.  The Paying Agent shall promptly return to the
Company any U.S. Legal Tender so deposited that is not required for that
purpose, except with respect to monies owed as obligations to the Trustee
pursuant to Article Seven.

 

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

 

Section 3.06                                Notes Redeemed in Part.  Upon surrender of a Note that is to be redeemed

 

39

 

in part, the Trustee shall authenticate for the
Holder a new Note or Notes equal in principal amount to the unredeemed portion
of the Note surrendered.

 

ARTICLE IV

COVENANTS

 

Section 4.01                                Payment of Notes.  The Company shall pay the interest on the
Notes on the dates and in the manner provided in the Notes.  An installment of principal of or interest on
the Notes shall be considered paid on the date it is due if the Trustee or
Paying Agent holds on that date U.S. Legal Tender designated for and sufficient
to pay the installment.  Interest on the
Notes will be computed on the basis of a 360- day year comprised of twelve
30-day months.

 

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

 

Section 4.02                                Maintenance of Office or
Agency.  The Company shall maintain the
office or agency required under Section 2.03. 
The Company shall give prior notice to the Trustee of the location, and
any change in the location, of such office or agency.  If at any time the Company shall fail to maintain
any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be
made or served at the address of the Trustee set forth in Section 13.02.

 

Section 4.03                                Limitation on Restricted
Payments.  The Company
shall not, and shall not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, make any Restricted Payment if at the time of such
Restricted Payment or immediately after giving effect thereto, (i) a Default or
an Event of Default shall have occurred and be continuing, (ii) the Company is
not able to incur at least $1.00 of additional Indebtedness other than
Permitted Indebtedness in compliance with Section 4.12, or (iii) the aggregate
amount of Restricted Payments including such proposed Restricted Payment made
after June 30, 2006, including, the Fair Market Value as determined reasonably
and in good faith by the Board of Managers of the Company of non-cash amounts
constituting Restricted Payments shall exceed the sum of:  (w) 50% of the cumulative Consolidated Net
Income (or if cumulative Consolidated Net Income shall be a loss, minus 100% of
such loss) of the Company earned from June 30, 2006 through the last day of the
last full fiscal quarter immediately preceding the date the Restricted Payment
occurs (the “Reference Date”) (treating such period as a single accounting
period); plus (x) 100% of the aggregate net cash proceeds received by the
Company from any Person (other than a Subsidiary of the Company) from the
issuance and sale subsequent to June 30, 2006 of Qualified Capital Stock of the
Company (other than Specified Venture Capital Stock) or debt securities of the
Company that are, upon issuance, convertible into or exchangeable for Qualified
Capital Stock of the Company, but only when and to the extent such debt
securities are converted into or exchanged for Qualified Capital Stock of the
Company; plus (y) without duplication of any amounts included in clause (iii)(x)
above, 100% of the aggregate net cash proceeds of any equity contribution
received by the Company from a holder of the Company’s Capital Stock subsequent
to June 30, 

 

40

 

2006; plus (z) $400 million.

 

Notwithstanding the foregoing,
the provisions set forth in the immediately preceding paragraph shall not
prohibit:  (1) the payment of any
dividend within 60 days after the date of declaration of such dividend if the
dividend would have been permitted on the date of declaration; (2) the
acquisition of any shares of Capital Stock of the Company, either (i) solely in
exchange for shares of Qualified Capital Stock of the Company or (ii) if no
Default or Event of Default shall have occurred and be continuing, through the
application of net cash proceeds of a substantially concurrent Equity Offering
(other than to a Subsidiary of the Company); (3) the acquisition or repayment
of any Indebtedness of the Company that is subordinate or junior in right of
payment to the Notes either (i) solely in exchange for shares of Qualified
Capital Stock of the Company, or (ii) if no Default or Event of Default shall
have occurred and be continuing, through the application of net cash proceeds
of (A) a substantially concurrent Equity Offering or (B) incurrence for cash of
Refinancing Indebtedness, (in the case of (A) or (B), other than to a
Subsidiary of the Company); (4) so long as no Default or Event of Default shall
have occurred and be continuing, repurchases by the Company of, or dividends to
a Huntsman Parent Company to permit repurchases by a Huntsman Parent Company
of, Common Stock of the Company or a Huntsman Parent Company from employees of
the Company or any of its Subsidiaries or their authorized representatives upon
the death, disability or termination of employment of such employees, in an
aggregate amount not to exceed $25 million in any calendar year; (5) the
redemption or repurchase of any Common Stock of the Company held by a
Restricted Subsidiary of the Company which obtained such Common Stock directly
from the Company; (6) distributions to any Huntsman Parent Company in
accordance with the Tax Sharing Agreement; (7) payments to any Huntsman Parent
Company for legal, audit and other expenses directly relating to the administration
of such Huntsman Parent Company not to exceed $10.0 million in any fiscal year;
(8) the payment of consideration by a third party to equity holders of the
Company; (9) additional Restricted Payments in an aggregate amount not to
exceed $225 million since the Designated Date; (10) the payment of dividends or
distributions to any Huntsman Parent Company which are contemporaneously
applied to pay dividends on common stock of the Huntsman Public Parent at a
rate not to exceed $0.40 per share per annum (such amount to be appropriately
adjusted to reflect any stock split, reverse stock split, stock dividend, stock
issuance or similar transactions made after the Designated Date so that the
aggregate amount of dividends payable after such transaction is the same as the
amount payable immediately prior to such transaction); (11) payments of
dividends on Disqualified Capital Stock issued in accordance with Section 4.12;
and (12) if the Consolidated Leverage Ratio of the Company, calculated after
giving pro forma effect to any
repurchase under this clause (12), is less than 2.5 to 1.0, then the Company
may repurchase or dividend to a Huntsman Parent Company to repurchase, up to an
aggregate of $250 million of Common Stock of a Huntsman Parent Company.  In determining the aggregate amount of
Restricted Payments made subsequent to the Designated Date in accordance with
clause (iii) of the immediately preceding paragraph, cash amounts expended
pursuant to clauses (1), (2), (3)(ii)(A) and (4) shall be included in such calculation
and Restricted Payments made pursuant to the other clauses of this paragraph
shall not be so included.

 

Not later than the date of
making any Restricted Payment pursuant to clause (iii) of the second preceding
paragraph or clause (9) of the immediately preceding paragraph, the Company 

 

41

 

shall deliver to the Trustee
an officers’ certificate stating that such Restricted Payment complies with
this Indenture and setting forth in reasonable detail the basis upon which the
required calculations were computed, which calculations may be based upon the
Company’s quarterly financial statements last provided to the Trustee pursuant
to Section 4.09.

 

Section 4.04                                Corporate Existence.  Except as otherwise permitted by Article Five,
the Company shall do or cause to be done all things reasonably necessary to
preserve and keep in full force and effect its corporate or other existence and
the corporate or other existence of each of its Restricted Subsidiaries in
accordance with the respective organizational documents of each such Restricted
Subsidiary and the material rights (charter and statutory) and franchises of
the Company and each such Restricted Subsidiary; except for such noncompliances
as are not in the aggregate reasonably likely to have a material adverse effect
on the financial condition or results of operations of the Company and its Restricted
Subsidiaries taken as a whole.

 

Section 4.05                                Payment of Taxes and Other
Claims.  The Company shall pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent, (i) all material taxes, assessments and governmental charges
(including withholding taxes and any penalties, interest and additions to
taxes) levied or imposed upon it or any of its Restricted Subsidiaries or
properties of it or any of its Restricted Subsidiaries and (ii) all material
lawful claims for labor, materials, supplies and services that, if unpaid,
might by law become a Lien upon the property of it or any of its Restricted
Subsidiaries; except for such noncompliances as are not in the aggregate
reasonably likely to have a material adverse effect on the financial condition
or results of operations of the Company and its Restricted Subsidiaries as a
whole; provided, however, that there shall not be required to be
paid or discharged any such tax, assessment or charge, the amount,
applicability or validity of which is being contested in good faith by
appropriate proceedings and for which adequate provision has been made or where
the failure to effect such payment or discharge is not adverse in any material
respect to the Holders.

 

Section 4.06                                Maintenance of Properties
and Insurance.

 

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

 

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

 

42

 

Section 4.07                                Compliance Certificate;
Notice of Default.

 

(a)                                  The Company
shall deliver to the Trustee, within 120 days after the end of each of the
Company’s fiscal years commencing with the fiscal year ending December 31,
2009, an Officers’ Certificate stating that a review of its activities and the
activities of its Restricted Subsidiaries during the preceding fiscal year has
been made under the supervision of the signing officers with a view to
determining whether it has kept, observed, performed and fulfilled its
obligations under this Indenture and further stating, as to each such officer
signing such certificate, that to the best of his knowledge at the date of such
certificate there is no Default or Event of Default that has occurred and is
continuing or, if such signers do know of such Default or Event of Default, the
certificate shall describe the Default or Event of Default and its status with
particularity.  The Officers’ Certificate
shall also notify the Trustee should the Company elect to change the manner in
which it fixes its fiscal year end.

 

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

 

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

 

Section 4.08                                Compliance with Laws.  The Company shall comply, and shall cause
each of its Restricted Subsidiaries to comply, with all applicable statutes,
rules, regulations, orders and restrictions of the United States of America,
all states and municipalities thereof, and of any governmental department,
commission, board, regulatory authority, bureau, agency and instrumentality of
the foregoing, in respect of the conduct of their respective businesses and the
ownership of their respective properties, except for such noncompliances as are
not in the aggregate reasonably likely to have a material adverse effect on the
financial condition or results of operations of the Company and its Restricted
Subsidiaries taken as a whole.

 

Section 4.09                                Reports to Holders.  Whether or not required by the Commission, so
long as any Notes are outstanding, the Company will furnish to the Holders of
the Notes and to the Trustee, within the time periods specified in the
Commission’s rules and regulations including any extension periods available
under such rules and regulations and excluding any requirement and time periods
applicable to “accelerated filers” (as defined in Rule 12b-2 under the Exchange
Act) under such rules and regulations, and make available to securities
analysts and potential investors upon request:

 

43

 

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

 

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

 

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

 

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

 

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

 

Section 4.10                                Waiver of Stay, Extension or
Usury Laws.  The Company
covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, plead, or in any manner whatsoever claim or take the benefit
or advantage of, any stay or extension law or any usury law or other law that
would prohibit or forgive the Company from paying all or any portion of the
principal of, premium or interest on the Notes as contemplated herein, wherever
enacted, now or at any time hereafter in force, or which may affect the
obligations or the performance of this Indenture; and (to the extent that it
may lawfully do so) the Company hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had
been enacted.

 

44

 

Section 4.11                                Limitations on Transactions
with Affiliates.

 

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

 

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

 

Section 4.12                                Limitation on Incurrence of
Additional Indebtedness.  The
Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, assume, guarantee, acquire, become
liable, contingently or otherwise, with respect to, or 

 

45

 

otherwise become responsible for payment of
(collectively, “incur”) any Indebtedness (other than Permitted Indebtedness);
provided, however, if no Default or Event of Default shall have occurred and be
continuing at the time of or as a consequence of the incurrence of any such
Indebtedness, the Company and its Restricted Subsidiaries may incur
Indebtedness (including Acquired Indebtedness) in each case if on the date of
the incurrence of such Indebtedness, after giving effect to the incurrence
thereof, the Consolidated Fixed Charge Coverage Ratio of the Company is greater
than 2.0 to 1.0.

 

Section 4.13                                Limitation on Dividend and
Other Payment Restrictions Affecting Subsidiaries.  The Company will not, and will not cause or
permit any of its Restricted Subsidiaries to, directly or indirectly, create or
otherwise cause or permit to exist or become effective any encumbrance or
restriction on the ability of any Restricted Subsidiary of the Company to (a) pay
dividends or make any other distributions on or in respect of its Capital
Stock; (b) make loans or advances or to pay any Indebtedness or other
obligation owed to the Company or any other Restricted Subsidiary of the
Company; or (c) transfer any of its property or assets to the Company or any
other Restricted Subsidiary of the Company, except for such encumbrances or
restrictions existing under or by reason of: 
(1) applicable law, rules, regulations and/or orders; (2)  this Indenture (including, without limitation,
any Liens permitted hereunder); (3) customary non-assignment provisions of any
contract or any lease governing a leasehold interest of the Company or any
Restricted Subsidiary of the Company; (4) any agreements existing at the time
of any merger or consolidation with any Person, acquisition of any Person or
the properties or assets of such Person (including agreements governing
Acquired Indebtedness), which encumbrance or restriction is not applicable to
any Person, or the properties or assets of any Person, other than the Person or
the properties or assets of the Person merged or consolidated with or so
acquired or any Subsidiary of such Person; (5) agreements existing on the Issue
Date to the extent and in the manner such agreements are in effect on such date
and any amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings thereof, provided that
such amendments, modifications, restatements, increases, supplements,
refundings, replacements or refinancings are no more restrictive (as determined
by the Board of Managers of the Company in their reasonable and good faith
judgment) in any material respect, taken as a whole, with respect to such
dividend and other payment restrictions than those contained in such agreements
or instruments as in effect on the Issue Date; (6) restrictions imposed by any
agreement to sell assets or Capital Stock permitted under this Indenture to any
Person pending the closing of such sale; (7) any agreement or instrument
governing Capital Stock of any Person that is acquired; (8) Indebtedness or
other contractual requirements of a Securitization Entity in connection with a
Qualified Securitization Transaction; provided that such restrictions apply
only to such Securitization Entity; (9) Liens incurred in accordance with the
covenant described under Section 4.18; (10) restrictions on cash or other
deposits or net worth imposed by customers under contracts entered into in the
ordinary course of business; (11) the Credit Facilities; (12) any restriction under
an agreement governing Indebtedness of a Foreign Subsidiary permitted under Section
4.12; (13) customary restrictions in Capitalized Lease Obligations, security
agreements or mortgages securing Indebtedness of the Company or a Restricted
Subsidiary to the extent such restrictions restrict the transfer of the
property subject to such Capitalized Lease Obligations, security agreements or
mortgages; (14) 

 

46

 

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

 

Section 4.14                                Change of Control.

 

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

 

(b)                                 [Reserved]

 

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

 

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

 

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

 

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

 

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

 

47

 

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

 

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

 

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

 

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

 

(d)                                 On or before
the Change of Control Payment Date, the Company shall (i) accept for payment
Notes or portions thereof (in minimum principal amount of $2,000 or integral
multiples of $1,000 in excess thereof) validly tendered pursuant to the Change
of Control Offer, (ii) deposit with the Paying Agent in accordance with Section
2.14 cash sufficient to pay the purchase price plus accrued and unpaid
interest, if any, of all Notes to be purchased and (iii) deliver to the Trustee
Notes so accepted together with an Officers’ Certificate stating the Notes or
portions thereof being purchased by the Company.  Upon receipt by the Paying Agent of the
monies specified in clause (ii) above and a copy of the Officers’ Certificate
specified in clause (iii) above, the Paying Agent shall promptly pay to the
Holders of Notes so accepted payment in an amount equal to the purchase price
plus accrued and unpaid interest, if any, out of the funds deposited with the
Paying Agent in accordance with the preceding sentence.  The Trustee shall promptly authenticate and
mail or cause to be transferred by book-entry to such Holders new Notes equal
in principal amount to any unpurchased portion of the Notes surrendered,
provided that each such new Note will be in a principal amount of $2,000 or
integral multiples of $1,000 in excess thereof. 
Upon the payment of the purchase price for the Notes accepted for
purchase, the Trustee shall return the Notes purchased to the Company for
cancellation.  Any monies remaining after
the purchase of Notes pursuant to a Change of Control Offer shall be returned within
three Business Days by the Trustee to the Company except with respect to monies
owed as obligations to the Trustee pursuant to Article Seven.  For purposes of this Section 4.14, the
Trustee shall act as the Paying Agent for the Notes.

 

(e)                                  The Company
will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such rule, 

 

48

 

laws and regulations are
applicable in connection with the purchase of the Notes pursuant to a Change of
Control Offer.  To the extent the
provisions of any securities laws and regulations conflict with the provisions
of this Indenture relating to a Change of Control Offer, the Company shall
comply with the applicable securities laws and regulations and shall not be
deemed to have breached its obligations relating to such Change of Control
Offer by virtue thereof.

 

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

 

Section 4.15                                Limitation on Asset Sales.

 

(a)                                  The Company will not, and
will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale
unless (i) the Company or the applicable Restricted Subsidiary receives consideration
at the time of such Asset Sale at least equal to the Fair Market Value of the
assets sold or otherwise disposed of as determined in good faith by the
Company’s Board of Managers; and (ii) at least 75% (or, in the case of an Asset
Sale consisting of assets used or useful in a business similar or related to
the Pigments business of the Company and its Subsidiaries, 65%) of the
consideration received by the Company or the applicable Restricted Subsidiary
from such Asset Sale shall be in the form of cash or Cash Equivalents, and is
received at the time of the Asset Sale (which shall be deemed to include other
consideration converted to cash or Cash Equivalents within 90 days of such
Asset Sale).

 

(b)                                 For the purposes of
paragraph (a) above, the amount of any liabilities shown on the most recent
applicable balance sheet of the Company or the applicable Restricted
Subsidiary, other than liabilities that are by their terms subordinated to the
Notes, that are assumed by the transferee of any such assets will be deemed to
be cash for purposes of such provision.

 

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

 

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

 

(ii)               to make an investment in or expenditures for
properties and assets (including Capital Stock of any entity) that replace the
properties and assets that were the subject of the Asset Sale or in properties
and assets (including Capital Stock of any entity) that will be used in the
business of the Company and its Subsidiaries as existing 

 

49

 

on the Issue Date or in businesses reasonably related thereto
(“Replacement Assets”) and/or

 

(iii)            make an acquisition of all of the capital stock or
assets of any Person or division conducting a business reasonably related to
that of the Company or its Subsidiaries. 
On the 416th day after an Asset Sale or any earlier date, if any, on
which the Board of Managers of the Company or of the applicable Restricted
Subsidiary determines not to apply the Net Cash Proceeds in accordance with the
above provisions of this clause (c) (each, a “Net Proceeds Offer Trigger
Date”), such aggregate amount of Net Cash Proceeds which have not been applied
or contractually committed to be applied (and to the extent not subsequently
applied, the Net Proceeds Offer Trigger Date related thereto shall be deemed to
be the date of termination of such contractual commitment or any earlier date,
if any, on which the Board of Managers of the Company or the board of the
applicable Restricted Subsidiary determines not to apply the Net Cash Proceeds
in accordance with such contractual commitment) on or before such Net Proceeds
Offer Trigger Date as permitted by the above provisions of this clause (c) (the
“Net Proceeds Offer Amount”) shall be applied by the Company or such Restricted
Subsidiary to make an offer to purchase (or repay, prepay or redeem, as the
case may be) (the “Net Proceeds Offer”) on a date (the “Net Proceeds Offer
Payment Date”) that is not less than 30 nor more than 45 days following the
applicable Net Proceeds Offer Trigger Date, from all Holders and all holders of
Indebtedness that is equal in right of payment with the Notes and contains
provisions requiring that an offer to purchase such other Indebtedness be made
with the proceeds of the Asset Sale, on a pro rata basis, the maximum principal
amount of Notes and other Indebtedness that may be purchased with the Net
Proceeds Offer Amount.  Notwithstanding
the foregoing, the obligation to make a Net Proceeds Offer shall be suspended
until such time as the aggregate amount of the Net Proceeds Offer Amount is equal
to or exceeds $75 million.  The offer
price in any Net Proceeds Offer will be equal to 100% of the principal value of
the Notes to be purchased, plus any accrued and unpaid interest to the date of
purchase.  The following events will be
deemed to constitute an Asset Sale and the Net Cash Proceeds for such Asset
Sale must be applied in accordance with this Section 4.15: in the event any
non-cash consideration received by the Company or any Restricted Subsidiary of
the Company in connection with any Asset Sale is converted into or sold or
otherwise disposed of for cash (other than interest received with respect to
any such non-cash consideration), or in the event of the transfer of
substantially all (but not all) of the property and assets of the Company and
its Restricted Subsidiaries as an entirety to a Person in a transaction
permitted under Section 5.01 and as a result thereof the Company is no longer
an obligor on the Notes, the successor corporation shall be deemed to have sold
the properties and assets of the Company and its Restricted Subsidiaries not so
transferred for purposes of this Section 4.15, and shall comply with the
provisions of this covenant with respect to such deemed sale as if it were an
Asset Sale.  In addition, the Fair Market
Value of such properties and assets of the Company or its Restricted
Subsidiaries deemed to be sold shall be deemed to be Net Cash Proceeds for
purposes of this Section 4.15.

 

(d)                                 Notwithstanding the
immediately preceding paragraphs, the Company and 

 

50

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(6)                                  that Holders will be
entitled to withdraw their election if the 

 

51

 

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

 

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

 

On or before the Net
Proceeds Offer Payment Date, the Company shall (i) accept for payment Notes or
portions thereof (in minimum principal amount of $2,000 or integral multiples
of $1,000 in excess thereof validly tendered pursuant to the Net Proceeds
Offer, (ii) deposit with the Paying Agent, in accordance with Section 2.14,
U.S. Legal Tender sufficient to pay the purchase price plus accrued and unpaid
interest, if any, of all Notes to be purchased and (iii) deliver to the Trustee
Notes so accepted together with an Officers’ Certificate stating the Notes or
portions thereof being purchased by the Company.  Upon receipt by the Paying Agent of the
monies specified in clause (ii) above and a copy of the Officers’ Certificate
specified in clause (iii) above, the Paying Agent shall promptly pay to the
Holders of Notes so accepted payment in an amount equal to the purchase price
plus accrued and unpaid interest, if any, out of the funds deposited with the
Paying Agent in accordance with the preceding sentence.  The Trustee shall promptly authenticate and
mail to such Holders new Notes equal in principal amount to any unpurchased
portion of the Notes surrendered.  Upon
the payment of the purchase price for the Notes accepted for purchase, the
Trustee shall cancel such Notes pursuant to Section 2.11 of this
Indenture.  Any monies remaining after
the purchase of Notes pursuant to a Net Proceeds Offer shall be returned within
three Business Days by the Trustee to the Company except with respect to monies
owed as obligations to the Trustee pursuant to Article Seven.  For purposes of this Section 4.15, the
Trustee shall act as the Paying Agent for the Notes.

 

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

 

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

 

Section 4.16                                [Reserved].

 

52

 

Section 4.17           Limitation on Preferred Stock of Restricted
Subsidiaries.  The Company
will not permit any of its Restricted Subsidiaries to issue any Preferred Stock
(other than to the Company or to another Restricted Subsidiary of the Company)
or permit any Person (other than the Company or a Restricted Subsidiary of the
Company) to own any Preferred Stock of any Restricted Subsidiary of the
Company; provided, however, that any Person that is not a
Restricted Subsidiary of the Company may issue Preferred Stock to equity
holders of such Person in exchange for equity interests if after such issuance
such Person becomes a Restricted Subsidiary of the Company.

 

Section 4.18           Limitation on Liens.  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to create, incur, or otherwise cause or
suffer to exist or become effective any Liens of any kind upon any property or
assets of the Company or any Restricted Subsidiary now owned or hereafter
acquired, which secures Subordinated Indebtedness unless such Indebtedness is
incurred in accordance with this Indenture and the Notes are secured on an
equal and ratable basis with the obligations so secured until such time as such
obligation is no longer secured by a Lien; provided that any such Lien shall be
subordinated to the Lien granted to the Holders in the same collateral as that
securing such Lien to the same extent as such Subordinated Indebtedness is
subordinated to the Notes.

 

Section 4.19           Limitation of Guarantees by Restricted Subsidiaries.  The Company will not permit any of its
Restricted Subsidiaries, directly or indirectly, by way of the pledge of any
intercompany note or otherwise, to assume, guarantee or in any other manner
become liable with respect to any Indebtedness of the Company or any other
Restricted Subsidiary (other than (A) Indebtedness under Commodity Agreements
and Currency Agreements in reliance on clause (v) of the definition of
Permitted Indebtedness, (B) Interest Swap Obligations incurred in reliance on
clause (iv) of the definition of Permitted Indebtedness, (C) any guarantee by a
Foreign Subsidiary of Indebtedness of another Foreign Subsidiary permitted
under Section 4.12), or (D) any guarantee of Acquired Indebtedness of a person
by any Subsidiary of such person which guarantee constitutes Acquired
Indebtedness, unless, in any such case (a) such Restricted Subsidiary that is
not a Guarantor executes and delivers a supplemental indenture to this
Indenture, providing a Guarantee by such Restricted Subsidiary, (b) if any such
assumption, guarantee or other liability by such Restricted Subsidiary is
provided in respect of Senior Indebtedness, then the guarantee or other
instrument provided by such Restricted Subsidiary in respect of such Senior
Indebtedness shall be pari passu in right of payment with the Guarantees and (c)
any such assumption, guarantee or other liability of such Restricted Subsidiary
that is provided in respect of Subordinated Indebtedness shall be subordinated
to the Guarantees in a manner substantially similar to the manner in which such
Subordinated Indebtedness is subordinated.

 

Section 4.20           Conduct of Business.  The Company and its Restricted Subsidiaries
(other than a Securitization Entity) will not engage in any businesses which
are not the same, similar or related to the businesses in which the Company and
its Restricted Subsidiaries were engaged on the Issue Date, except to the
extent that after engaging in any new business, the Company and its Restricted
Subsidiaries, taken as a whole, remain substantially engaged in similar lines
of business as were conducted by them on the Issue Date.

 

53

 

Section 4.21           Covenant Termination.  After such time as (i) the Notes have been
assigned an Investment Grade Rating by either Rating Agency (the “Investment
Grade Rating Date”) and (ii) no Default or Event of Default under this
Indenture shall have occurred and be continuing, and notwithstanding that the
Notes may later cease to have an Investment Grade Rating by any Rating Agency,
the Company and its Restricted Subsidiaries shall no longer be subject to the
following sections:  Section 4.03, Section
4.11, Section 4.12, Section 4.13, Section 4.15, Section 4.17, Section 4.19, Section
4.20 and Section 5.01(a)(iii) or (c)(iii). 
Notice of such covenant termination shall be provided in writing to the
Trustee.

 

ARTICLE V

SUCCESSOR CORPORATION

 

Section 5.01           Merger, Consolidation and Sale of Assets.

 

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

 

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

 

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

 

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

 

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

 

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

 

(b)           For purposes of this Section
5.01, the transfer (by lease, assignment, sale 

 

54

 

or otherwise, in a single
transaction or series of related transactions) of all or substantially all of
the properties and assets of one or more Restricted Subsidiaries of the
Company, the Capital Stock of which constitutes all or substantially all of the
properties or assets of the Company, will be deemed to be the transfer of all
or substantially all of the properties and assets of the Company.

 

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

 

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

 

Section 5.02           Successor Corporation Substituted.  Upon any consolidation, combination or
merger, or any transfer of all or substantially all of the assets of the
Company in accordance with Section 5.01 in which the Company is not the
Surviving Entity, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, lease or transfer is
made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture and the Notes with the same effect
as if such Surviving Entity had been named as such.

 

ARTICLE VI

DEFAULT AND REMEDIES

 

Section 6.01           Events of Default.  Each of the following shall be an “Event of
Default”:

 

(1)           the failure to pay interest any Notes when the same
becomes due and payable and such Default continues for a period of 30 days;

 

55

 

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

 

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

 

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

 

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

 

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

 

(7)           a court of competent jurisdiction enters a judgment,
decree or order for relief in respect of the Company or any Restricted
Subsidiary which is also a Significant Subsidiary in an involuntary case or
proceeding under any Bankruptcy Law, which shall (A) approve as properly filed
a petition seeking reorganization, arrangement, adjustment or composition in
respect of the Company or any Significant Subsidiary, (B) appoint a custodian
of the Company or any Significant Subsidiary or for substantially all 

 

56

 

of its property or (C) order the winding-up or liquidation of its
affairs; and such judgment, decree or order shall remain unstayed and in effect
for a period of 60 consecutive days; or

 

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

 

Section 6.02           Acceleration.

 

(a)           If an Event of Default of
the type described in Section 6.01(6) or (7) occurs with respect to the Company
and is continuing, then all unpaid principal of, and premium, if any, and
accrued and unpaid interest on all of the outstanding Notes (including any
Additional Notes subsequently issued under this Indenture) will become
immediately due and payable without further action or notice.  If any other Event of Default occurs and is
continuing, then the Trustee or the Holders of at least 25% in principal amount
of outstanding Notes (including any Additional Notes subsequently issued under
this Indenture) may declare the principal of and accrued interest on all the
Notes to be due and payable by notice in writing (the “Acceleration Notice”) to
the Company and the Trustee, which notice must also specify that it is a
“notice of acceleration.”

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

57

 

Section 6.03           Other Remedies.  If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy by proceeding at law or
in equity to collect the payment of principal of, premium, if any, or accrued
and unpaid interest on the Notes or to enforce the performance of any provision
of the Notes or this Indenture.

 

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

 

Section 6.04           Waiver of Past Defaults.  Subject to Sections 6.07 and 9.02, the
Holders of a majority in aggregate principal amount of the Notes (including the
aggregate principal amount of any Additional Notes subsequently issued under
this Indenture) by notice to the Trustee may waive any existing Default or
Event of Default hereunder and its consequences, except a Default in the
payment of the principal of or interest on any Note as specified in clauses (1)
and (2) of Section 6.01; provided that a Default or Event of Default due
to failure to comply with Section 4.09 shall be deemed to be cured upon filing
by the Company (or, if applicable, Huntsman Corporation) of the reports in
compliance with Section 4.09.

 

Section 6.05           Control by Majority.  Subject to Section 2.09, the Holders of a
majority in aggregate principal amount of the then outstanding Notes may direct
the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on it,
including, without limitation, any remedies provided for in Section 6.03.  Subject to Section 7.01, however, the Trustee
may, in its discretion, refuse to follow any direction that conflicts with any
law or this Indenture, that the Trustee determines may be unduly prejudicial to
the rights of another Holder (it being understood that the Trustee shall have
no duty to ascertain whether or not such actions or forbearances are unduly
prejudicial to such Holders) or that may involve the Trustee in personal
liability; provided, however, that the Trustee may take any other action deemed
proper by the Trustee, in its discretion, that is not inconsistent with such
direction.

 

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

 

Section 6.06           Limitation on Suits.  A Holder may not pursue any remedy with
respect to this Indenture or the Notes unless:

 

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

 

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

 

58

 

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

 

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

 

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

 

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

 

Section 6.07           Rights of Holders To Receive Payment.  Notwithstanding any other provision of this
Indenture, the right of any Holder to receive payment of principal of, premium
and interest on a Note, on or after the respective due dates expressed in such
Note, or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such
Holder.

 

Section 6.08           Collection Suit by Trustee.  If an Event of Default in payment of
principal or interest specified in clause (1) or (2) of Section 6.01 occurs and
is continuing, the Trustee may recover judgment in its own name and as trustee
of an express trust against the Company or any other obligor on the Notes for
the whole amount of principal and accrued interest remaining unpaid, together
with interest on overdue principal and, to the extent that payment of such
interest is lawful, interest on overdue installments of interest at the rate
set forth in the Notes and such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

 

Section 6.09           Trustee May File Proofs of Claim.  The Trustee may file such proofs of claim and
other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation,
expenses, taxes, disbursements and advances of the Trustee, its agents and
counsel) and the Holders allowed in any judicial proceedings relating to the
Company or any other obligor upon the Notes, any of their respective creditors
or any of their respective property, and shall be entitled and empowered to
collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same, and any custodian in any such judicial
proceedings is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it
for the reasonable compensation, expenses, taxes, disbursements and advances of
the Trustee, its agents and counsel, and any other amounts due the Trustee
under Section 7.07.  The Company’s
payment obligations under this Section 6.09 shall be secured in accordance with
the provisions of Section 7.07.  Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any 

 

59

 

plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

 

Section 6.10           Priorities.  If the Trustee collects any money or property
pursuant to this Article Six, it shall pay out the money in the following order:

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 6.12           Expenses and Services After an Event of Default.  When the Trustee incurs expenses or renders
services after the occurrence of an Event of Default described in this Article VI,
the expenses and compensation for services are intended to constitute expenses
of administration under any bankruptcy law.

 

ARTICLE VII

TRUSTEE

 

Section 7.01           Duties of Trustee.

 

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

 

60

 

the circumstances in the conduct
of its own affairs.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

61

 

Section 7.02           Rights of Trustee.  Subject to Section 7.01:

 

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

 

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

 

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

 

(d)           The Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate
(including any Officers’ Certificate), statement, instrument, opinion
(including any Opinion of Counsel), notice, request, direction, consent, order,
bond, debenture, or other paper or document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it
may see fit and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled, upon reasonable notice to the Company, to
examine the books, records, and premises of the Company, personally or by agent
or attorney.

 

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

 

(f)            The Trustee may consult with counsel of its
selection, and the advice or opinion of counsel with respect to legal matters
relating to this Indenture and the Notes shall be full and complete
authorization and protection from liability with respect to any action taken,
omitted or suffered by it hereunder in good faith and in accordance with the
advice or opinion of such counsel.

 

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

 

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

 

62

 

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

 

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

 

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

 

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

 

Section 7.03                                Individual Rights of Trustee.  The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with
the Company, any Restricted or Unrestricted Subsidiary, or their respective
Affiliates, with the same rights it would have if it were not Trustee.  Any Agent may do the same with like
rights.  However, the Trustee must comply
with Sections 7.10 and 7.11.

 

Section 7.04                                Trustee’s Disclaimer.  The Trustee makes no representation as to the
validity or adequacy of this Indenture or the Notes, and it shall not be
accountable for the Company’s use of the proceeds from the Notes, and it shall
not be responsible for any statement of the Company in this Indenture or the
Notes other than the certificate of authentication.

 

Section 7.05                                Notice of Default.  If a Default or an Event of Default occurs
and is continuing and if the Trustee has actual knowledge of such Default or
Event of Default, the Trustee shall mail to each Noteholder notice of the
uncured Default or Event of Default on the later of (i) 60 days after such
Default or Event of Default occurs or (ii) 10 days after the Trustee has actual
knowledge of such Default or Event of Default. 
Except in the case of a Default or an Event of Default in the payment of
interest or principal of, premium or interest on, any Note, including an
accelerated payment and the failure to make payment on the Change of Control
Payment Date pursuant to a Change of Control Offer or on a Net Proceeds Offer
Payment Date pursuant to a Net Proceeds Offer and, except in the case of a
failure to comply with Article Five, the Trustee may withhold the notice if and
so long as its Responsible Officer(s) in good faith 

 

63

 

determines that withholding the notice is in the
interest of the Holders.  The Trustee shall
not be deemed to have knowledge of a Default or Event of Default other than (i)
any Event of Default occurring pursuant to Sections 6.01(1) or 6.01(2); or (ii)
any Default or Event of Default of which a Trust Officer shall have received
written notification or obtained actual knowledge.  As used herein, the term “actual knowledge”
means the actual fact or statement of knowing, without any duty to make any
investigation with regard thereto. 
During the existence of an Event of Default, the Trustee will exercise
such rights and powers vested in it by this Indenture, and use the same degree
of care and skill in its exercise as a prudent Person would exercise or use
under the circumstances in the conduct of his own affairs.

 

Section 7.06                                Reports by Trustee to
Holders.  Within 60 days after April 15
of each year beginning with April 15, 2010, the Trustee shall, to the extent
that any of the events described in TIA § 313(a) occurred within the previous
twelve months, but not otherwise, mail to each Noteholder a brief report dated
as of such date that complies with TIA § 313(a).  The Trustee also shall comply with TIA § 313(b)
and 313(c).

 

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

 

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

 

Section 7.07                                Compensation and Indemnity.  The Company shall pay to the Trustee from
time to time, and the Trustee shall be entitled to, such compensation as may be
agreed upon by the Company and the Trustee. 
The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. 
The Company shall reimburse the Trustee promptly upon request for all
reasonable out-of-pocket expenses, disbursements and advances incurred or made
by it in connection with the performance of its duties and the discharge of its
obligations under this Indenture.  Such
expenses shall include the reasonable fees and expenses of the Trustee’s agents
and counsel.

 

The Company shall indemnify
the Trustee and its agents, employees, officers, stockholders and directors
for, and hold them harmless against, any loss, liability or expense including
taxes (other than taxes based on the income of the Trustee) and reasonable
attorneys’ fees and expenses incurred by them except for such actions to the
extent caused by any negligence, bad faith or willful misconduct on their part,
arising out of or in connection with the acceptance or administration of this
trust including the reasonable costs and expenses of defending themselves
against or investigating any claim (whether asserted by the Company, and Holder
or any other Person) or liability in connection with the exercise or
performance of any of the Trustee’s rights, powers or duties hereunder.  The Trustee shall notify the Company promptly
of any claim asserted against the Trustee or any of its agents, employees,
officers, stockholders and directors for which it may seek indemnity.  Failure by the Company to so notify the
Trustee shall not relieve the Company of its obligations hereunder.  The Company shall defend the claim and the
Trustee shall cooperate in the defense at the Company’s expense.  The Trustee and its agents, employees,
officers, stockholders and directors subject to the claim may have separate 

 

64

 

counsel and the Company shall
pay the reasonable fees and expenses of such counsel; provided, however,
that the Company will not be required to pay such fees and expenses if it
assumes the Trustee’s defense and there is no conflict of interest between the
Company and the Trustee and its agents, employees, officers, stockholders and
directors subject to the claim in connection with such defense as reasonably
determined by the Trustee; provided, further, that, unless the
Company otherwise agrees in writing, the Company shall not be liable to pay the
fees and expenses of more than one counsel at any given time located within one
particular jurisdiction.  The Company
need not pay for any settlement made without its written consent which consent
shall not be unreasonably withheld.  The
Company need not reimburse any expense or indemnify against any loss or liability
to the extent incurred by the Trustee through its negligence, bad faith or
willful misconduct.

 

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

 

When the Trustee incurs
expenses or renders services after an Event of Default specified in Section 6.01(6)
or (7) occurs, such expenses  (including
the reasonable charges and expenses of its counsel) and the compensation for
such services are intended to constitute expenses of administration and shall
be paid to the extent allowed under any Bankruptcy Law.

 

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

 

Section 7.08                                Replacement of Trustee.  The Trustee may resign by so notifying the
Company in writing at least 30 days in advance. 
The Holders of a majority in principal amount of the outstanding Notes
may remove the Trustee by so notifying the Company and the Trustee and may
appoint a successor Trustee with the Company’s consent.  A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective only with the
successor Trustee’s acceptance of appointment as provided in this Section.  The Company may remove the Trustee if:

 

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

 

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

 

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

 

(4)                                  the Trustee becomes
incapable of acting.

 

If the Trustee resigns or is
removed or if a vacancy exists in the office of Trustee for any reason, the
Company shall notify each Holder of such event and shall promptly appoint a 

 

65

 

successor Trustee.  Within one year after the successor Trustee
takes office, the Holders of a majority in principal amount of the Notes may
appoint a successor Trustee to replace the successor Trustee appointed by the
Company.

 

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

 

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

 

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

 

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

 

Section 7.09                                Successor Trustee by Merger,
Etc.  If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all of its
corporate trust business to, another corporation, the resulting, surviving or
transferee corporation without any further act shall, if such resulting,
surviving or transferee corporation is otherwise eligible hereunder, be the
successor Trustee; provided, however, that such corporation shall
be otherwise qualified and eligible under this Article Seven.

 

Section 7.10                                Eligibility;
Disqualification.  This
Indenture shall always have a Trustee who satisfies the requirement of TIA §§ 310(a)(1)
and 310(a)(2).  The Trustee (or in the
case of a corporation included in a bank holding company system, the related
bank holding company) shall have a combined capital and surplus of at least
$100,000,000 as set forth in its most recent published annual report of
condition.  In addition, if the Trustee
is a corporation included in a bank holding company system, the Trustee,
independently of such bank holding company, shall meet the capital requirements
of TIA § 310(a)(2).  The Trustee shall
comply with TIA § 310(b); provided, however, that there shall be
excluded from the operation of TIA § 310(b)(1) any indenture or indentures
under which other notes, or certificates of interest or participation in other
notes, of the Company are outstanding, if the requirements for such exclusion
set forth in TIA § 310(b)(1) are met. 
The provisions of TIA § 310 shall apply to the Company and any other obligor
of the Notes.

 

Section 7.11                                Preferential Collection of
Claims Against the Company.  The Trustee shall comply with TIA § 311(a),
excluding any creditor relationship listed in TIA § 311(b).  A Trustee who has resigned or been removed
shall be subject to TIA § 311(a) to the extent indicated 

 

66

 

therein.  The
provisions of TIA § 311 shall apply to the Company and any other obligor of the
Notes.

 

ARTICLE VIII

DISCHARGE OF INDENTURE; DEFEASANCE

 

Section 8.01                                Termination of the Company’s
Obligations.  This
Indenture will be Discharged and will cease to be of further effect and the
obligations of the Company and the Guarantors under the Notes and the
Guarantees and this Indenture shall terminate (except that the obligations
under Sections 2.03 through 2.07, 7.01, 7.02, 7.07 and 7.08 and the rights, powers,
trusts, duties and immunities of the Trustee hereunder shall survive the effect
of this Article Eight) when (a) either (i) all existing Notes theretofore
authenticated and delivered (except lost, stolen or destroyed Notes which have
been replaced or paid and Notes for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company and thereafter
repaid to the Company or discharged from such trust) have been delivered to the
Trustee for cancellation or (ii) all Notes not theretofore delivered to the
Trustee for cancellation have become due and payable or will become due and
payable within one year (including by way of irrevocable instructions delivered
by the Company to the Trustee to effect the redemption of the Notes), and the
Company has irrevocably deposited or caused to be deposited with the Trustee as
trust funds in trust solely for the benefit of the Holders of such Notes, cash
in U.S. dollars, U.S. Government Obligations or a combination thereof, in
amounts as will be sufficient without consideration of any reinvestment of
interest to pay and discharge the entire Indebtedness on the Notes not
theretofore delivered to the Trustee for cancellation, for principal of,
premium, if any, and interest on the Notes to the date of deposit together with
irrevocable instructions from the Company directing the Trustee to apply such
Funds to the payment thereof at maturity or redemption, as the case may be; (b)
the Company has paid all other sums payable under this Indenture by the Company
with respect to the Notes; and (c) the Company has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel stating that all conditions
precedent under this Indenture relating to the satisfaction and discharge of
this Indenture with respect to the Notes have been complied with.  All funds that remain unclaimed for one year
will be paid to the Company and thereafter Holders must look to the Company for
payment as general creditors.

 

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

 

(1)                                  the Company must irrevocably
deposit with the Trustee in trust, for the benefit of the Holders cash in U.S.
Dollars or non-callable U.S. government 

 

67

 

obligations, in such amounts as will be sufficient, in the opinion of a
nationally recognized firm of independent public accountants, to pay the
principal of, premium, if any, and interest on the Notes on the stated date for
payment thereof or on an applicable redemption date;

 

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

 

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

 

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

 

in either case, to the effect that, and based
thereon such Opinion of Counsel shall confirm that, the Holders of the
outstanding Notes will not recognize income, gain or loss for United States
federal income tax purposes as a result of such Legal Defeasance and will be
subject to United States federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Legal
Defeasance had not occurred; provided, however, such Opinion of Counsel shall
not be required if all the Notes will become due and payable on the Maturity
Date within one year or are to be called for redemption within one year under
arrangements satisfactory to the Trustee;

 

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

 

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

 

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

 

(6)                                  the Company shall have
delivered to the Trustee an Officers’ 

 

68

 

Certificate stating that the deposit was not made by the Company with
the intent of preferring the Holders of the Notes over any other creditors of
the Company or with the intent of defeating, hindering, delaying or defrauding
any other creditors of the Company or others;

 

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

 

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

 

Section 8.02                                Acknowledgment of Discharge
by Trustee.  Subject to Section
8.05, after (i) the conditions of Section 8.01, have been satisfied and (ii) the
Company has delivered to the Trustee an Opinion of Counsel, stating that all
conditions precedent referred to in clause (i) above relating to the
satisfaction and discharge of this Indenture have been complied with, the
Trustee upon written request of the Company shall acknowledge in writing the
discharge of the Company’s obligations under this Indenture except for those
surviving obligations specified in this Article Eight.

 

Section 8.03                                Application of Trust Money.  The Trustee shall hold in trust Funds
deposited with it pursuant to Section 8.01. 
It shall apply the Funds through the Paying Agent and in accordance with
this Indenture to the payment of all the principal of, or premium, if any, and
interest on the Notes.

 

Section 8.04                                Repayment to the Company.  The Trustee and the Paying Agent shall
promptly pay to the Company any Funds held by them for the payment of all the
principal of, or premium, if any, and interest that remains unclaimed for one
year; provided, however, that the Trustee or such Paying Agent
may, at the expense of the Company, cause to be published once in a newspaper
of general circulation in the City of New York or mailed to each Holder, notice
that such Funds remain unclaimed and that, after a date specified therein,
which shall not be less than 30 days from the date of such publication or
mailing, any unclaimed balance of such Funds then remaining will be repaid to
the Company.  After payment to the
Company, Holders entitled to the Funds must look to the Company for payment as
general unsecured creditors unless an applicable abandoned property law
designates another Person and all liability of the Trustee and Paying Agent
with respect to such Funds shall cease.

 

Section 8.05                                Reinstatement.  If the Trustee or Paying Agent is unable to
apply any Funds by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company’s obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to Section 8.01 until such time as the Trustee or Paying 

 

69

 

Agent is permitted to apply all such Funds in accordance
with Section 8.01; provided, however, that if the Company has
made any payment of principal, or premium, if any, and interest on any Notes
because of the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Notes to receive such payment
from Funds held by the Trustee or Paying Agent.

 

ARTICLE IX

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

Section 9.01                                Without Consent of Holders.  The Company, when authorized by a Board
Resolution, the Guarantors and the Trustee, together, may amend or supplement
this Indenture, the Notes or the Guarantees without the consent of any Holders
to:

 

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

 

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

 

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

 

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

 

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

 

(6)                                  to make any change that
would provide any additional benefit or rights to the Holders or that does not
adversely affect in any material respect the legal rights of any Noteholders
hereunder; provided that the Company has delivered to the Trustee an
Opinion of Counsel and an Officers’ Certificate, each stating that such
amendment or supplement complies with the provisions of this Section 9.01.

 

Section 9.02                                With Consent of Holders.  Subject to Section 6.07, the Company, when
authorized by a Board Resolution, the Guarantors and the Trustee, together,
with the written consent (including any electronic communication thereof by a
Depositary) of the Holder or Holders of at least a majority in principal amount
of the then outstanding Notes (including the aggregate principal amount of any
Additional Notes subsequently issued under this Indenture) may make all other
modifications, waivers and amendments of this Indenture, the Notes or the
Guarantees, except that, without the consent of each Holder of Notes affected
thereby, no amendment and waiver may, directly or indirectly:

 

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

 

70

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 9.03                                Compliance with TIA.  Every amendment, waiver or supplement of this
Indenture or the Notes shall comply with the TIA as then in effect.

 

Section 9.04                                Revocation and Effect of
Consents.  Until an amendment,
waiver or supplement becomes effective, a consent to it by a Holder is a
continuing consent by the Holder and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note,
even if notation of the consent is not made on any Note.  Subject to the following paragraph, any such
Holder or subsequent Holder may revoke the consent as to his Note or portion of
his Note by notice to the Trustee or the Company received before the date on 

 

71

 

which the Trustee receives an Officers’ Certificate
certifying that the Holders of the requisite principal amount of Notes have
consented (and not theretofore revoked such consent) to the amendment,
supplement or waiver (at which time such amendment, supplement or waiver shall
become effective).

 

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

 

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

 

Section 9.05                                Notation on or
Exchange of Notes.  If an
amendment, supplement or waiver changes the terms of a Note, the Trustee may
require the Holder of the Note to deliver it to the Trustee.  The Trustee may place an appropriate notation
on the Note about the changed terms and return it to the Holder.  Alternatively, if the Company or the Trustee
so determines, the Company in exchange for the Note shall issue and the Trustee
shall authenticate a new Note that reflects the changed terms.

 

Section 9.06                                Trustee To Sign
Amendments, Etc.  The Trustee
shall execute any amendment, supplement or waiver authorized pursuant to and
adopted in accordance with this Article Nine; provided, however, that the
Trustee may, but shall not be obligated to, execute any such amendment,
supplement or waiver which affects the Trustee’s own rights, duties or
immunities under this Indenture.  The
Trustee shall be entitled to receive, and shall be fully protected in relying
upon, an Opinion of Counsel and an Officers’ Certificate each stating that the
execution of any amendment, supplement or waiver authorized pursuant to this Article Nine
is authorized or permitted by this Indenture. 
Such Opinion of Counsel shall not be an expense of the Trustee.

 

72

 

ARTICLE X

[RESERVED]

 

ARTICLE XI

GUARANTEE OF NOTES

 

Section 11.01                          Unconditional
Guarantee.  Subject to
the provisions of this Article Eleven, each of the Guarantors hereby,
jointly and severally, unconditionally and irrevocably guarantees (such
guarantees to be referred to herein as the “Guarantee”) to each Holder of a
Note (including any Additional Notes upon issuance in accordance with Section 2.18)
authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, irrespective of the validity and enforceability of this
Indenture, the Notes or the obligations of the Company or any other Guarantors
to the Holders or the Trustee hereunder or thereunder, that: (a) the
principal of, premium, if any, and interest on the Notes (and any Additional
Interest payable thereon) shall be duly and punctually paid in full when due,
whether at maturity, upon redemption at the option of Holders pursuant to the
provisions of the Notes relating thereto, by acceleration or otherwise, and
interest on the overdue principal and (to the extent permitted by law)
interest, if any, on the Notes and all other obligations of the Company or the
Guarantors to the Holders or the Trustee hereunder or thereunder (including
amounts due the Trustee under Section 7.07 hereof) and all other
obligations shall be promptly paid in full or performed, all in accordance with
the terms hereof and thereof; and (b) in case of any extension of time of
payment or renewal of any Notes or any of such other obligations, the same
shall be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at maturity, by acceleration or
otherwise.  Failing payment when due of
any amount so guaranteed, or failing performance of any other obligation of the
Company to the Holders under this Indenture or under the Notes, for whatever
reason, each Guarantor shall be obligated to pay, or to perform or cause the
performance of, the same immediately.  An
Event of Default under this Indenture or the Notes shall constitute an event of
default under this Guarantee, and shall entitle the Holders of Notes to
accelerate the obligations of the Guarantors hereunder in the same manner and
to the same extent as the obligations of the Company.

 

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

 

73

 

accelerated as provided in Article Six
hereof for the purposes of this Guarantee, notwithstanding any stay, injunction
or other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (b) in the event of any acceleration of such
obligations as provided in Article Six hereof, such obligations (whether
or not due and payable) shall forthwith become due and payable by the
Guarantors for the purpose of this Guarantee.

 

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

 

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

 

Section 11.02                          Limitations on
Guarantees.  The
obligations of each Guarantor under its Guarantee are limited to the maximum
amount which, after giving effect to all other contingent and fixed liabilities
of such Guarantor and after giving effect to any collections from or payments
made by or on behalf of any other Guarantor in respect of the obligations of
such other Guarantor under its Guarantee or pursuant to its contribution
obligations under this Indenture, will result in the obligations of such
Guarantor under the Guarantee not constituting a fraudulent conveyance or
fraudulent transfer under applicable law.

 

Section 11.03                          Execution and
Delivery of Guarantee.  To
further evidence the Guarantee set forth in Section 11.01, each Guarantor
hereby agrees that a notation of such Guarantee, substantially in the form of Exhibit E
hereto, shall be endorsed on each Note authenticated and delivered by the
Trustee.  Such Guarantee shall be
executed on behalf of each Guarantor by either manual or facsimile signature of
a duly authorized Officer of each Guarantor. 
The validity and enforceability of any Guarantee shall not be affected
by the fact that it is not affixed to any particular Note.

 

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

 

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

 

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

 

Section 11.04                          Release of a
Guarantor.

 

(a)                                  If no Default
or Event of Default exists and is continuing, the obligations

 

74

 

of any Guarantor under its
Guarantee of the Notes will be automatically and unconditionally released and
discharged when any of the following occurs:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 11.05                          Waiver of
Subrogation.  Until this
Indenture is discharged and all of the Notes are discharged and paid in full,
each Guarantor hereby irrevocably waives and agrees not to exercise any claim
or other rights which it may now or hereafter acquire against the Company that
arise from the existence, payment, performance or enforcement of the Company’s
obligations under the Notes or this Indenture and such Guarantor’s obligations
under this Guarantee and this Indenture, in any such instance including,
without limitation, any right of subrogation, reimbursement, exoneration,
contribution, indemnification, and any right to participate in any claim or
remedy of the Holders against the Company, whether or not such

 

75

 

claim, remedy or right arises in equity, or under
contract, statute or common law, including, without limitation, the right to
take or receive from the Company, directly or indirectly, in cash or other
property or by set-off or in any other manner, payment or security on account
of such claim or other rights.  If any
amount shall be paid to any Guarantor in violation of the preceding sentence
and any amounts owing to the Trustee or the Holders of Notes under the Notes,
this Indenture, or any other document or instrument delivered under or in
connection with such agreements or instruments, shall not have been paid in
full, such amount shall have been deemed to have been paid to such Guarantor
for the benefit of, and held in trust for the benefit of, the Trustee or the
Holders and shall forthwith be paid to the Trustee for the benefit of itself or
such Holders to be credited and applied to the obligations in favor of the
Trustee or the Holders, as the case may be, whether matured or unmatured, in
accordance with the terms of this Indenture. 
Each Guarantor acknowledges that it will receive direct and indirect
benefits from the financing arrangements contemplated by this Indenture and
that the waiver set forth in this Section 11.05 is knowingly made in
contemplation of such benefits.

 

Section 11.06                          Immediate
Payment.  Each Guarantor agrees to make
immediate payment to the Trustee on behalf of the Holders of all Obligations
owing or payable to the respective Holders upon receipt of a demand for payment
therefor by the Trustee to such Guarantor in writing.

 

Section 11.07                          No Set-Off.  Each payment to be made by a Guarantor
hereunder in respect of the Obligations shall be payable in the currency or
currencies in which such Obligations are denominated, and shall be made without
set-off, defense, counterclaim, reduction or diminution of any kind or nature.

 

Section 11.08                          Obligations
Absolute.  The
obligations of each Guarantor hereunder are and shall be absolute and unconditional
and any monies or amounts expressed to be owing or payable by each Guarantor
hereunder which may not be recoverable from such Guarantor on the basis of a
Guarantee shall be recoverable from such Guarantor as a primary obligor and
principal debtor in respect thereof.

 

Section 11.09                          Obligations
Continuing.  The
obligations of each Guarantor hereunder shall be continuing and shall remain in
full force and effect until all the obligations have been paid and satisfied in
full.  Each Guarantor agrees with the
Trustee that it will from time to time deliver to the Trustee suitable acknowledgments
of this continued liability hereunder and under any other instrument or
instruments in such form as counsel to the Trustee may advise and as will
prevent any action brought against it in respect of any default hereunder being
barred by any statute of limitations now or hereafter in force and, in the
event of the failure of a Guarantor so to do, it hereby irrevocably appoints
the Trustee the attorney and agent of such Guarantor to make, execute and
deliver such written acknowledgment or acknowledgments or other instruments as
may from time to time become necessary or advisable, in the judgment of the
Trustee on the advice of counsel, to fully maintain and keep in force the
liability of such Guarantor hereunder.

 

Section 11.10                          Obligations Not
Reduced.  The obligations of each
Guarantor hereunder shall not be satisfied, reduced or discharged solely by the
payment of such principal, premium, if

 

76

 

any, interest, fees and other monies or amounts as
may at any time prior to discharge of this Indenture pursuant to Article Eight
be or become owing or payable under or by virtue of or otherwise in connection
with the Notes or this Indenture.

 

Section 11.11                          Obligations
Reinstated.  The
obligations of each Guarantor hereunder shall continue to be effective or shall
be reinstated, as the case may be, if at any time any payment which would
otherwise have reduced the obligations of any Guarantor hereunder (whether such
payment shall have been made by or on behalf of the Company or by or on behalf
of a Guarantor) is rescinded or reclaimed from any of the Holders upon the
insolvency, bankruptcy, liquidation or reorganization of the Company or any
Guarantor or otherwise, all as though such payment had not been made.  If demand for, or acceleration of the time
for, payment by the Company is stayed upon the insolvency, bankruptcy,
liquidation or reorganization of the Company, all such Indebtedness otherwise
subject to demand for payment or acceleration shall nonetheless be payable by
each Guarantor as provided herein.

 

Section 11.12                          Obligations Not
Affected.  The
obligations of each Guarantor hereunder shall not be affected, impaired or diminished
in any way by any act, omission, matter or thing whatsoever, occurring before,
upon or after any demand for payment hereunder (and whether or not known or
consented to by any Guarantor or any of the Holders) which, but for this
provision, might constitute a whole or partial defense to a claim against any
Guarantor hereunder or might operate to release or otherwise exonerate any
Guarantor from any of its obligations hereunder or otherwise affect such
obligations, whether occasioned by default of any of the Holders or otherwise,
including, without limitation:

 

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

 

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

 

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

 

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

 

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

 

(f)                                    any change in
the time, manner or place of payment of, or in any other

 

77

 

term of, any of the Notes, or any other amendment, variation,
supplement, replacement or waiver of, or any consent to departure from, any of
the Notes or this Indenture, including, without limitation, any increase or
decrease in the principal amount of or premium, if any, or interest on any of
the Notes;

 

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

 

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

 

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

 

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

 

Section 11.13                          Waiver.  Without in any way limiting the provisions of
Section 11.01 hereof, each Guarantor hereby waives notice of acceptance
hereof, notice of any liability of any Guarantor hereunder, notice or proof of
reliance by the Holders upon the obligations of any Guarantor hereunder, and
diligence, presentment, demand for payment on the Company, protest, notice of
dishonor or non-payment of any of the Obligations, or other notice or
formalities to the Company or any Guarantor of any kind whatsoever.

 

Section 11.14                          No Obligation
To Take Action Against the Company.  Neither the Trustee nor any other Person
shall have any obligation to enforce or exhaust any rights or remedies or to
take any other steps under any security for the Obligations or against the Company
or any other Person or any property of the Company or any other Person before
the Trustee is entitled to demand payment and performance by any or all
Guarantors of their liabilities and obligations under their Guarantees or under
this Indenture.

 

Section 11.15                          Dealing with
the Company and Others.  The
Holders, without releasing, discharging, limiting or otherwise affecting in
whole or in part the obligations and liabilities of any Guarantor hereunder and
without the consent of or notice to any Guarantor, may

 

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

 

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

 

78

 

(c)                                  accept compromises or
arrangements from the Company;

 

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

 

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

 

Section 11.16                          Default and Enforcement.  If any Guarantor fails to pay in accordance
with Section 11.06 hereof, the Trustee may proceed in its name as trustee
hereunder in the enforcement of the Guarantee of any such Guarantor and such
Guarantor’s obligations thereunder and hereunder by any remedy provided by law,
whether by legal proceedings or otherwise, and to recover from such Guarantor
the obligations.

 

Section 11.17                          Amendment, Etc.  No amendment, modification or waiver of any
provision of this Indenture relating to any Guarantor or consent to any
departure by any Guarantor or any other Person from any such provision will in
any event be effective unless it is signed by such Guarantor and the Trustee.

 

Section 11.18                          Acknowledgment.  Each Guarantor hereby acknowledges
communication of the terms of this Indenture and the Notes and consents to and
approves of the same.

 

Section 11.19                          Costs and
Expenses.  Each
Guarantor shall pay on demand by the Trustee any and all costs, fees and
expenses (including, without limitation, legal fees) incurred by the Trustee,
its agents, advisors and counsel or any of the Holders in enforcing any of
their rights under any Guarantee.

 

Section 11.20                          No Waiver;
Cumulative Remedies.  No failure
to exercise and no delay in exercising, on the part of the Trustee or the
Holders, any right, remedy, power or privilege hereunder or under this
Indenture or the Notes, shall operate as a waiver thereof; nor shall any single
or partial exercise of any right, remedy, power or privilege hereunder or under
this Indenture or the Notes preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
in the Guarantee and under this Indenture, the Notes and any other document or
instrument between a Guarantor and/or the Company and the Trustee are
cumulative and not exclusive of any rights, remedies, powers and privilege
provided by law.

 

Section 11.21                          Guarantee in
Addition to Other Obligations.  The obligations of each Guarantor under its Guarantee
and this Indenture are in addition to and not in substitution for any other
obligations to the Trustee or to any of the Holders in relation to this
Indenture or the Notes and any guarantees or security at any time held by or
for the benefit of any of them.

 

Section 11.22                          Severability.  Any provision of this Article Eleven
which is prohibited or unenforceable in any jurisdiction shall not invalidate
the remaining provisions and any such

 

79

 

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

 

Section 11.23                          Successors and
Assigns.  Unless released in accordance
with this Indenture, each Guarantee shall be binding upon and inure to the
benefit of each Guarantor and the Trustee and the other Holders and their
respective successors and permitted assigns, except that no Guarantor may
assign any of its obligations hereunder or thereunder.

 

ARTICLE XII

[RESERVED]

 

ARTICLE XIII

MISCELLANEOUS

 

Section 13.01                          TIA Controls.  If any provision of this Indenture limits,
qualifies, or conflicts with another provision which is required to be included
in this Indenture by the TIA, the required provision shall control.  If any provision of this Indenture modifies
or excludes any provision of the TIA that may be so modified or excluded, the
latter provision shall be deemed to apply to this Indenture as so modified or
excluded, as the case may be.

 

Section 13.02                          Notices.  Any notices or other communications required
or permitted hereunder shall be in writing, and shall be sufficiently given if
made by hand delivery, by telex, by telecopier or registered or certified mail,
postage prepaid, return receipt requested, addressed as follows:

 

if to the Company or any
Guarantor:

 

Huntsman International LLC

500 Huntsman Way

Salt Lake City, Utah 84108

 

Attention: Office of General Counsel

 

if to the Trustee:

 

[insert
Trustee]

[                                ]

Attention:                 [Corporate
Trust Services -

Huntsman Administrator]

 

The Company, the Guarantors
and the Trustee by written notice to each other may designate additional or different
addresses for notices.  Any notice or
communication to the Company, the Guarantors or the Trustee shall be deemed to
have been given or made as of the date so delivered if personally delivered;
when answered back, if telexed; when receipt is acknowledged, if faxed; and
five (5) calendar days after mailing if sent by registered or certified

 

80

 

mail, postage prepaid
(except that a notice of change of address shall not be deemed to have been
given until actually received by the addressee).

 

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

 

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

 

Section 13.03                          Communications
by Holders with Other Holders.  Holders may communicate pursuant to TIA (§)
312(b) with other Holders with respect to their rights under this Indenture
or the Notes.  The Company, the Trustee,
the Registrar and any other Person shall have the protection of TIA (§) 312(c).

 

Section 13.04                          Certificate and
Opinion as to Conditions Precedent.  Upon any request or application by the
Company or the Guarantors to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee:

 

(1)                                  an Officers’ Certificate, in
form and substance satisfactory to the Trustee, stating that, in the opinion of
the signers, all conditions precedent to be performed by the Company, if any,
provided for in this Indenture relating to the proposed action have been
complied with; and

 

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

 

Section 13.05                          Statements
Required in Certificate or Opinion.  Each certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture, other
than the Officers’ Certificate required by Section 4.07, shall include:

 

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

 

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

 

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

 

(4)                                  a statement as to whether or
not, in the opinion of each such

 

81

 

Person, such condition or covenant has been
complied with.

 

Section 13.06     Rules by Trustee, Paying Agent,
Registrar.  The Trustee may make
reasonable rules in accordance with the Trustee’s customary practices for
action by or at a meeting of Holders. 
The Paying Agent or Registrar may make reasonable rules for its
functions.

 

Section 13.07     Legal Holidays.  If a payment date under this Indenture is not
a Business Day, payment may be made at such place on the next succeeding day
that is a Business Day, and no interest shall accrue for the intervening
period.

 

Section 13.08     Governing Law.  THIS INDENTURE, THE NOTES AND THE GUARANTEES
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK.  Each of the parties hereto
agrees to submit to the non-exclusive jurisdiction of the competent courts of
the State of New York in any action or proceeding arising out of or relating to
this Indenture or the Notes.

 

Section 13.09     No Adverse Interpretation of Other
Agreements.  This Indenture may not
be used to interpret another indenture, loan or debt agreement of the Company
or any of its Subsidiaries.  Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 13.10     No Recourse Against Others.  A past, present or future director, officer,
member, manager, employee, stockholder or incorporator, as such, of the Company
or any Guarantor shall not have any liability for any obligations of the
Company or any Guarantor under the Notes, the Guarantees or this Indenture or
for any claim based on, in respect of or by reason of such obligations or their
creations.  Each Holder by accepting a
Note waives and releases all such liability. 
Such waiver and release are part of the consideration for the issuance
of the Notes.

 

Section 13.11     Successors.  All agreements of the Company in this
Indenture and the Notes shall bind its successors.  All agreements of the Trustee in this
Indenture shall bind its successors.

 

Section 13.12     Duplicate Originals.  All parties may sign any number of copies of
this Indenture.  Each signed copy shall
be an original, but all of them together shall represent the same agreement.

 

Section 13.13     Severability.  In case any one or more of the provisions in
this Indenture or in the Notes shall be held invalid, illegal or unenforceable,
in any respect for any reason, the validity, legality and enforceability of any
such provision in every other respect and of the remaining provisions shall not
in any way be affected or impaired thereby, it being intended that all of the
provisions hereof shall be enforceable to the full extent permitted by law.

 

Section 13.14     Independence of Covenants.  All covenants and agreements in this
Indenture and the Notes shall be given independent effect so that if any particular
action or 

 

82

 

condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to, or otherwise
be within the limitations of, another covenant shall not avoid the occurrence
of a Default or an Event of Default if such action is taken or condition
exists.

 

[Remainder of Page Intentionally
Left Blank]

 

83

 

SIGNATURES

 

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

 

	
   

  	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GUARANTORS

  
	
   

  	
   

  
	
   

  	
  AIRSTAR CORPORATION

  
	
   

  	
  EUROFUELS LLC

  
	
   

  	
  EUROSTAR INDUSTRIES LLC

  
	
   

  	
  HUNTSMAN EA HOLDINGS LLC

  
	
   

  	
  HUNTSMAN ETHYLENEAMINES LTD.

  
	
   

  	
  HUNTSMAN INTERNATIONAL FINANCIAL LLC

  
	
   

  	
  HUNTSMAN INTERNATIONAL FUELS, L.P.

  
	
   

  	
  HUNTSMAN PROPYLENE OXIDE HOLDINGS LLC

  
	
   

  	
  HUNTSMAN PROPYLENE OXIDE LTD.

  
	
   

  	
  HUNTSMAN TEXAS HOLDINGS LLC

  
	
   

  	
  HUNTSMAN ADVANCED MATERIALS
  AMERICAS INC.

  
	
   

  	
  HUNTSMAN ADVANCED MATERIALS LLC

  
	
   

  	
  HUNTSMAN AUSTRALIA INC.

  
	
   

  	
  HUNTSMAN CHEMICAL COMPANY LLC

  
	
   

  	
  HUNTSMAN CHEMICAL FINANCE CORPORATION

  
	
   

  	
  HUNTSMAN CHEMICAL PURCHASING CORPORATION

  
	
   

  	
  HUNTSMAN ENTERPRISES, INC.

  
	
   

  	
  HUNTSMAN EXPANDABLE POLYMERS COMPANY, LC

  
	
   

  	
  HUNTSMAN FUELS, L.P.

  
	
   

  	
  HUNTSMAN
  GROUP INTELLECTUAL PROPERTY HOLDINGS CORPORATION

  
	
   

  	
  HUNTSMAN HEADQUARTERS CORPORATION

  
	
   

  	
  HUNTSMAN INTERNATIONAL CHEMICALS

  

 

S-1

 

	
   

  	
  CORPORATION

  
	
   

  	
  HUNTSMAN INTERNATIONAL TRADING CORPORATION

  
	
   

  	
  HUNTSMAN MA INVESTMENT CORPORATION

  
	
   

  	
  HUNTSMAN MA SERVICES CORPORATION

  
	
   

  	
  HUNTSMAN PETROCHEMICAL CORPORATION

  
	
   

  	
  HUNTSMAN PETROCHEMICAL FINANCE CORPORATION

  
	
   

  	
  HUNTSMAN
  PETROCHEMICAL PURCHASING CORPORATION

  
	
   

  	
  HUNTSMAN PROCUREMENT CORPORATION

  
	
   

  	
  HUNTSMAN PURCHASING, LTD.

  
	
   

  	
  JK HOLDINGS CORPORATION

  
	
   

  	
  PETROSTAR FUELS LLC

  
	
   

  	
  PETROSTAR INDUSTRIES LLC

  
	
   

  	
  POLYMER MATERIALS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  Executed as a Deed by

  	
  TIOXIDE AMERICAS INC.

  
	
  [                                  ]

  	
   

  
	
  for and on behalf of

  	
   

  
	
  Tioxide Americas Inc

  	
  By:

  	
   

  
	
  in the presence of

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Witness

  	
   

  
				

 

S-2

 

	
   

  	
  TIOXIDE GROUP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [·],
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-3

 

EXHIBIT A

 

[FORM OF NOTE]

 

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

 

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

 

A-1

 

HUNTSMAN INTERNATIONAL LLC

 

5 1⁄2 %  Senior Note due 2016

 

	
  No.  $

  	
  CUSIP No.      

  

 

HUNTSMAN
INTERNATIONAL LLC, a Delaware limited liability company (the “Company”), for
value received, promises to pay to
                    
or registered assigns, the principal sum of $              ,
on June 30, 2016.

 

Interest
Payment Dates:  June 30 and December 31
(commencing December 31, 2009)

 

Record
Dates:  June 15 and December 15

 

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

 

A-2

 

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

 

	
  Dated:

  	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Certificate of Authentication

 

This is one of
the 5 1⁄2 %  Senior Notes due 2016 referred
to in the within-mentioned Indenture.

 

	
  Dated:

  	
  [·],
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  

 

A-3

 

(REVERSE OF NOTE)

 

5 1⁄2 %  Senior Note due 2016

 

1.             Interest.  HUNTSMAN INTERNATIONAL LLC, a Delaware
limited liability company (the “Company”), promises to pay interest on the
principal amount of this Note at the rate per annum shown above.  Interest on the Notes will accrue from the
most recent date on which interest has been paid or, if no interest has been
paid, from June    , 2009. 
The Company will pay interest semi-annually in arrears on each June 30
and December 31 (each, an “Interest Payment Date”) and at stated maturity,
commencing on December 31, 2009. 
Interest will be computed on the basis of a 360-day year comprised of
twelve 30-day months.

 

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

 

2.             Method of Payment.  The Company shall pay interest on the Notes
(except defaulted interest) to the Persons who are the registered Holders at
the close of business on the June 15 or December 15 (each, a “Record
Date”) immediately preceding the Interest Payment Date even if the Notes are
cancelled on registration of transfer or registration of exchange after such
Record Date.  Holders must surrender
Notes to a Paying Agent to collect principal payments.  The Company shall pay principal, premium and
interest in money of the United States that at the time of payment is legal
tender for payment of public and private debts (“U.S. Legal Tender”).  However, the Company may pay principal,
premium and interest by its check payable in such U.S. Legal Tender.  The Company may deliver any such interest
payment to the Paying Agent or to a Holder at the Holder’s registered address.

 

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

 

4.             Indenture.  The Company issued the Notes under an
Indenture, dated as of June    , 2009 (the “Indenture”),
among the Company, each of the Guarantors named therein and the Trustee.  This Note is one of a duly authorized issue
of Notes of the Company designated as its 5 1⁄2 % 
Senior Notes due 2016 (the “Notes”), which may be issued under the
Indenture.  The Company shall be entitled
to issue Additional Notes pursuant to Section 2.18 of the Indenture.  The Notes and any Additional Notes and any
Exchange Notes issued in accordance with the Indenture are treated as a single
class of securities under the Indenture unless otherwise specified in the
Indenture.  Capitalized terms used herein
shall have the meanings assigned to them in the Indenture unless otherwise
defined herein.  The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb)
(the “TIA”), as in effect on the date of the Indenture.  Notwithstanding anything to the contrary
herein, the Notes are subject to all such terms, and Holders of Notes are
referred to the Indenture and the TIA for a statement of them.

 

A-4

 

5.             Optional Redemption.  The Notes will be redeemable, at the
Company’s option, in whole at any time or in part from time to time, upon not
less than 30 nor more than 60 days’ notice, at a redemption price equal to the
principal amount thereof, plus accrued and unpaid interest thereon, if any, to
the date of redemption.

 

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

 

7.             Change of Control Offer.  In the event of a Change of Control, upon the
satisfaction of the conditions set forth in the Indenture, the Company shall be
required to offer to repurchase all of the then outstanding Notes pursuant to a
Change of Control Offer at a purchase price equal to 101% of the principal
amount thereof plus accrued and unpaid interest, if any, to the date of
purchase.  Holders of Notes that are the
subject of such an offer to repurchase shall receive an offer to repurchase and
may elect to have such Notes repurchased in accordance with the provisions of
the Indenture pursuant to and in accordance with the terms of the Indenture.

 

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

 

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

 

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

 

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

 

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

 

A-5

 

obligation to pay the
principal of, premium and interest on the Notes).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

A-6

 

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

 

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

 

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

 

[23.        Registration Rights.  Pursuant to the Registration Rights
Agreement, the Company and the Guarantors may be obligated upon the occurrence
of certain events and subject to certain conditions to consummate an exchange
offer pursuant to which the Holder of this Note shall have the right to
exchange this Note for a 5 1⁄2 %  Senior
Note due 2016, of the Company (an “Unrestricted Note”) which have been registered
under the Securities Act, in like principal amount and having terms identical
in all material respects as this Note. 
The Holders may be entitled to receive certain additional interest
payments in the event such exchange offer is not consummated and upon certain
other conditions, all pursuant to and in accordance with the terms of the
Registration Rights Agreement.][Include for Restricted Securities only]

 

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

 

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

 

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

 

A-7

 

[FORM OF ASSIGNMENT]

 

I or we assign to

 

PLEASE INSERT SOCIAL SECURITY

OR OTHER IDENTIFYING NUMBER

	
   

  	
   

  
	
   

  	
   

  
	
   

  
	
   

  
	
  (please print or type name
  and address)

  
	
   

  
	
   

  
	
   

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

  
	
   

  
	
   

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

  
	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

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

  
	
   

  
	
   

  
	
  Signature Guarantee:

  	
   

  
					

 

A-8

 

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

 

	
  [Check
  One]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (1)

  	
   

  	
  o

  	
   

  	
  to the Company or a subsidiary thereof; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  o

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  o

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  o

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  o

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (6)

  	
   

  	
  o

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (7)

  	
   

  	
  o

  	
   

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

  
	
   

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

  
	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  The transferee is an Affiliate of the Company.

  

 

Unless one of the items is
checked, the Trustee will refuse to register any of the Notes evidenced by this
certificate in the name of any person other than the registered Holder thereof;
provided, however, that if item (3), (4), (5) or (7) is
checked, the Company or the Trustee may 

 

A-9

 

require, prior to
registering any such transfer of the Notes, in their sole discretion, such
written legal opinions, certifications (including an investment letter in the
case of box (3) or (4) and other information as the Trustee or the
Company have reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of l933, as amended.

 

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

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as name appears

  
	
   

  	
   

  	
  on the other side of this Note)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  	
   

  
						

 

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

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE: 

  	
  To be executed by an

  
	
   

  	
   

  	
   

  	
  executive officer] [To be included in Restricted Securities only]

  

 

A-10

 

OPTION OF HOLDER TO ELECT PURCHASE

 

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

 

Section 4.14 [ ] Section 4.15
[ ]

 

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

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as name appears

  
	
   

  	
   

  	
  on the other side of this Note)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  
	
   

  	
  Participant in a recognized Signature

  Guarantee Medallion Program (or other

  signature guarantor program reasonably

  acceptable to the Trustee) 

  
						

 

A-11

 

EXHIBIT B

 

FORM OF LEGEND FOR
GLOBAL SECURITY

 

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

 

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

 

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

 

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

 

B-1

 

EXHIBIT C

 

FORM OF TRANSFER CERTIFICATE

RESTRICTED GLOBAL SECURITY TO UNRESTRICTED

GLOBAL SECURITY

 

(Transfers Pursuant to Sections 2.16(a)(iii) and
2.16(b)(ii) of the Indenture)

 

[insert Trustee]

[Address]

Attention:
Corporate Trust Services

 

Huntsman
International LLC

500
Huntsman Way

Salt
Lake City, Utah 84108

Attention:  Secretary

 

Re:                               Huntsman
International LLC 5 1⁄2 %  Senior Notes due
2016 (the “Securities”)

 

Reference is hereby made to
the Indenture, dated as of June      , 2009
between the Company, the Guarantors named therein and [·], as trustee,
(the “Indenture”).  Terms used but not
defined herein and defined in Regulation S under the U.S. Securities Act of
1933 (the “Securities Act”) or in the Indenture shall have the meanings given
to them in Regulation S or the Indenture, as the case may be.

 

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

 

	
  [CUSIP No(s).

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CERTIFICATE
  No(s).

  	
   

  	
   

  
					

 

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

 

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

 

C-1

 

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

 

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

 

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

 

(C)                                either:

 

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

 

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

 

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

 

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

 

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

 

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

 

(A)                              the transfer is being
effected in accordance with the applicable amount, manner of sale and notice
requirements of Rule 144; or

 

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

 

This certificate and the
statements contained herein are made for your benefit and the benefit of the
Company.

 

C-2

 

Dated:

 

 

	
   

  	
   

  
	
   

  	
  (Print the name of the Undersigned, as such term is defined in the
  second paragraph of this certificate.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

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

 

C-3

 

EXHIBIT D

 

FORM OF CERTIFICATE TO BE

DELIVERED IN CONNECTION WITH

TRANSFERS TO INSTITUTIONAL ACCREDITED INVESTORS

 

(Transfers Pursuant to Section 2.17(a) of
the Indenture)

 

[insert Trustee]

[Address]

Attention:
Corporate Trust Services

 

Huntsman
International LLC

500
Huntsman Way

Salt
Lake City, Utah 84108

Attention:  Secretary

 

Re:                               Huntsman
International LLC 5 1⁄2 %  Senior Notes due
2016 (the “Securities”)

 

Ladies and Gentlemen:

 

Reference is hereby made to
the Indenture, dated as of June    , 2009 between the
Company and [·], as trustee
(the “Indenture”).  Terms used but not
defined herein have the meanings given to them in the Indenture.

 

This certificate relates to
$         principal amount of
Securities, which are evidenced by the following certificate(s):

 

1.  We understand that the Securities have not
been registered under the Securities Act of 1933, as amended (the “Securities
Act”), and may not be sold except as permitted in the following sentence.  We understand and agree, on our own behalf
and on behalf of any accounts for which we are acting as hereinafter stated, (x) that
such Securities are being offered only in a transaction not involving any
public offering within one year after the date of the original issuance of the
Securities or if within three months after we cease to be an affiliate (within
the meaning of Rule 144 under the Securities Act) of the Company, such
Securities may be resold, pledged or transferred only (i) to the Company, (ii) so
long as the Securities are eligible for resale pursuant to Rule 144A under
the Securities Act (“Rule 144A”), to a person whom we reasonably believe
is a “qualified institution buyer” (as defined in Rule 144A) (“QIB”) that
purchases for its own account or for the account of a QIB to whom notice is
given that the resale, pledge or transfer is being made in reliance on Rule 144A
(as indicated by the box checked by the transferor on the Certificate of
Transfer on the reverse of the certificate for the Securities), (iii) in
an offshore transaction in accordance with Regulation S under the Securities
Act (as indicated by the box checked by the transferor on the Certificate of
Transfer on the reverse of the Note if the Note is not in book-entry form),
and, if such transfer is being effected by certain transferors prior to the
expiration of the “40-day distribution compliance period” (within the 

 

D-1

 

meaning of Rule 903(b)(2) of
Regulation S under the Securities Act), a certificate that may be obtained from
the Trustee is delivered by the transferee, (iv) to an institution that is
an “accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7) under
the Securities Act (as indicated by the box checked by the transferor on the
Certificate of Transfer on the reverse of the certificate for the Securities)
which has certified to the Company and the Trustee for the Securities that it
is such an accredited investor and is acquiring the Securities for investment
purposes and not for distribution (provided that no Securities purchased from a
foreign purchaser or from any person other than a QIB or an institutional
accredited investor pursuant to this clause (iii) shall be permitted to
transfer any Securities so purchased to an institutional accredited investor
pursuant to this clause (iv) prior to the expiration of the “applicable
restricted period” (within the meaning of Regulation S under the Securities
Act), (v) pursuant to an exemption from registration under the Securities
Act provided by Rule 144 (if applicable) under the Securities Act, or (vi) pursuant
to an effective registration statement under the Securities Act, in each case
in accordance with any applicable securities laws of any state of the United
States, and we will notify any purchaser of the Securities from us of the above
resale restriction, if then applicable. 
We further understand that in connection with any transfer of the
Securities by us that the Company and the Trustee for the Securities may
request, and if so requested we will furnish, such certificates, legal opinions
and other information as they may reasonably require to confirm that any such
transfer complies with the foregoing restrictions.

 

2.  We are able to fend for ourselves in the
transactions contemplated hereby, we have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of our investment in the Securities, and we and any accounts for which we
are acting are each able to bear the economic risk of our or its investment and
can afford the complete loss of such investment.

 

3.  We understand that the Company and others
will rely upon the truth and accuracy of the foregoing acknowledgments,
representations and agreements and we agree that if any of the acknowledgments,
representations and warranties deemed to have been made by us by our purchase
of Securities, for our own account or of one or more accounts as to each of
which we exercise sole investment discretion, are no longer accurate, we shall
promptly notify the Company.

 

4.  We are acquiring the Securities purchased by
us for investment purposes and not for distribution of our own account or for
one or more accounts as to each of which we exercise sole investment discretion
and we are or such account is an institutional “accredited investor” (as
defined in rule 501(a)(1), (2), (3) or (7) of Regulation D under
the Securities Act).

 

5.  You are entitled to rely upon this letter and
you are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

 

D-2

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Name of Purchaser)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  

 

D-3

 

EXHIBIT E

 

GUARANTEE

 

For value received, the
undersigned hereby unconditionally guarantees, as principal obligor and not
only as a surety, to the Holder of this Note the payments of principal of,
premium, if any, and interest on this Note in the amounts and at the times when
due and interest on the overdue principal, premium, if any, and interest, if
any, of this Note, if lawful, and the payment or performance of all other
obligations of the Company under the Indenture (as defined below) or the Notes,
to the Holder of this Note and the Trustee, all in accordance with and subject
to the terms and limitations of this Note, Article Eleven of the Indenture
and this Guarantee.  This Guarantee will
become effective in accordance with Article Eleven of the Indenture and
its terms shall be evidenced therein. 
The validity and enforceability of any Guarantee shall not be affected
by the fact that it is not affixed to any particular Note.

 

Capitalized terms used but
not defined herein shall have the meanings ascribed to them in the Indenture
dated as of June    , 2009, among HUNTSMAN INTERNATIONAL
LLC as issuer (the “Company”), each of the Guarantors named therein and [·] as trustee
(the “Trustee”), as amended or supplemented (the “Indenture”).

 

The obligations of the undersigned
to the Holders of Notes and to the Trustee pursuant to this Guarantee and the
Indenture are expressly set forth in Article Eleven of the Indenture
(including, without limitation, the applicable limitations on this Guarantee as
set forth in Section 11.02 of the Indenture and the provisions relating to
the release of this Guarantee as set forth in Section 11.04 of the
Indenture) and reference is hereby made to the Indenture for the precise terms
of the Guarantee and all of the other provisions of the Indenture to which this
Guarantee relates.

 

THIS GUARANTEE SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.  The undersigned Guarantor hereby
agrees to submit to the jurisdiction of the courts of the State of New York in
any action or proceeding arising out of or relating to this Guarantee.

 

This Guarantee is subject to
release upon the terms set forth in the Indenture.

 

E-1

 

IN WITNESS WHEREOF, each
Guarantor has caused its Guarantee to be duly executed.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ,

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

E-2

 

Execution Version

 

HUNTSMAN INTERNATIONAL LLC

 

$600,000,000 51⁄2% Senior Notes due 2016

 

guaranteed as to the

payment of principal, premium,

if any, and interest by

 

AIRSTAR CORPORATION

EUROFUELS LLC

EUROSTAR INDUSTRIES LLC

HUNTSMAN EA HOLDINGS LLC

HUNTSMAN ETHYLENEAMINES LTD.

HUNTSMAN INTERNATIONAL
FINANCIAL LLC

HUNTSMAN INTERNATIONAL FUELS, L.P.

HUNTSMAN PROPYLENE OXIDE
HOLDINGS LLC

HUNTSMAN PROPYLENE OXIDE
LTD.

HUNTSMAN TEXAS HOLDINGS LLC

HUNTSMAN ADVANCED MATERIALS
AMERICAS INC.

HUNTSMAN ADVANCED MATERIALS
LLC

HUNTSMAN AUSTRALIA INC.

HUNTSMAN CHEMICAL COMPANY
LLC

HUNTSMAN CHEMICAL FINANCE
CORPORATION

HUNTSMAN CHEMICAL PURCHASING
CORPORATION

HUNTSMAN ENTERPRISES, INC.

HUNTSMAN EXPANDABLE POLYMERS
COMPANY, LC

HUNTSMAN FUELS, L.P.

HUNTSMAN GROUP INTELLECTUAL
PROPERTY HOLDINGS CORPORATION

HUNTSMAN HEADQUARTERS
CORPORATION

HUNTSMAN INTERNATIONAL
CHEMICALS CORPORATION

HUNTSMAN INTERNATIONAL
TRADING CORPORATION

HUNTSMAN MA INVESTMENT
CORPORATION

HUNTSMAN MA SERVICES CORPORATION

HUNTSMAN PETROCHEMICAL
CORPORATION

HUNTSMAN PETROCHEMICAL
FINANCE CORPORATION

HUNTSMAN PETROCHEMICAL
PURCHASING CORPORATION

HUNTSMAN PROCUREMENT
CORPORATION

HUNTSMAN
PURCHASING, LTD.

JK HOLDINGS CORPORATION

PETROSTAR FUELS LLC

PETROSTAR INDUSTRIES LLC

POLYMER MATERIALS INC.

TIOXIDE AMERICAS INC.

TIOXIDE GROUP

 

Exchange and Registration Rights Agreement

 

 

June 23, 2009

 

Deutsche Bank Securities Inc.

60
Wall Street

New
York, New York  10005

 

Credit
Suisse Securities (USA) LLC

Eleven
Madison Avenue

New
York, New York 10010

 

Ladies
and Gentlemen:

 

Huntsman International LLC, a Delaware limited
liability company (the “Company”), proposes to issue to the Purchasers
(as defined herein) as contemplated by the Note Purchase Agreement (as defined
herein) and the Temporary Notes (as defined herein) $600,000,000 aggregate
principal amount of the Company’s 51⁄2% Senior Notes due 2016, which are guaranteed
by each of the guarantors listed on Schedule I hereto and which will be issued
pursuant to the Indenture (as defined herein).

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“FINRA”  Financial Institutions Regulatory Authority, Inc.

 

“Freely Tradable” the Securities shall
be deemed to be “Freely Tradable” at any time of determination if at such time
of determination it may be sold to the public pursuant to Rule 144 under
the Securities Act by a person that is not an “affiliate” (as defined in Rule 144
under the Securities Act) of the Company without regard to any of the
conditions specified therein (other than the holding period requirement in
paragraph (d) of Rule 144 so long as such holding period requirement
is satisfied at such time of determination).

 

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

 

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

 

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

 

3

 

“Indenture” shall mean the Indenture,
entered into in accordance with the Note Purchase Agreement, between the Company,
the Guarantors and the Trustee, as the same shall be amended from time to time
relating to the Securities.

 

“Note Purchase Agreement” shall mean
the Note Purchase Agreement, dated as of June 22, 2009, among the
Purchasers, the Guarantors and the Company relating to the Securities.

 

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

 

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

 

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

 

“Registrable Securities” Each (i) Security,
until the earliest to occur of (a) the date on which such Security is
exchanged in the Exchange Offer and entitled to be resold to the public by the
holder thereof without complying with the prospectus delivery requirements of
the Securities Act, (b) the date on which such Security has been
effectively registered under the Securities Act and disposed of in accordance
with a Shelf Registration Statement and (c) the date on which such
Security is Freely Tradable and (ii) Exchange Security issued to a broker-dealer
until the date on which such Security has been distributed by a broker-dealer
pursuant to the “Plan of Distribution” contemplated by the Exchange
Registration Statement (including delivery of the prospectus contained
therein).

 

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

 

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

 

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

 

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

 

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

 

4

 

Offer in exchange for Registrable Securities
acquired by the broker-dealer directly from the Company.

 

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

 

“Securities” shall mean the
$600,000,000 aggregate principal amount of the Company’s 51⁄2% Senior Notes due
2016 issued under the Indenture and delivered to the Purchasers in exchange for
the Temporary Notes and debt securities issued in exchange therefor or in lieu
thereof pursuant to the Indenture (other than Exchange Securities).  Each Security is entitled to the benefit of
the Guarantee provided for in the Indenture and, unless the context otherwise
requires, any reference herein to a “Security,” an “Exchange Security” or a
“Registrable Security” shall include a reference to the related Guarantee.

 

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

 

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

 

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

 

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

 

“Temporary Notes” shall have the
meaning assigned thereto in the Note Purchase Agreement.

 

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

 

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

 

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

 

5

 

2.             Registration Under the Securities Act.

 

(a)           The securities
entitled to the benefits of this Agreement are the Registrable Securities.

 

(b)            If any of the
Securities are not Freely Tradable by the 366th calendar day following the
Closing Date, then, unless the Exchange Offer shall not be permissible under
applicable law or Commission policy (after the procedures set forth in Section 3
below have been complied with), the Company and the Guarantors shall (i) file
under the Securities Act a registration statement relating to offers to
exchange (such registration statement, the “Exchange Registration Statement,”
and such offers, collectively, the “Exchange Offer”) any and all of the
Registrable Securities for a like aggregate principal amount of debt securities
issued by the Company and guaranteed by the Guarantors, which debt securities
and guarantee are substantially identical to the Securities and the related
Guarantees, respectively (and are entitled to the benefits of the Indenture or
a trust indenture which is substantially identical to the Indenture and which
has been qualified under the Trust Indenture Act), except that they have been
registered pursuant to an effective registration statement under the Securities
Act and do not contain provisions for registration rights or the Special
Interest contemplated in Section 2(e) below (such new debt securities
and guarantee hereinafter called “Exchange Securities”), (ii) use
their reasonable best efforts to cause such Exchange Registration Statement to
become effective under the Securities Act, (iii) in connection with the
foregoing, file (A) all pre-effective amendments to such Exchange
Registration Statement as may be necessary in order to cause such Exchange
Registration Statement to become effective, (B) if applicable, a
post-effective amendment to such Exchange Registration Statement pursuant to Rule 430A
under the Securities Act and (C) cause all necessary filings in connection
with the registration and qualification of the Exchange Securities to be made
under the Blue Sky laws of such jurisdictions as are necessary to permit
consummation of the Exchange Offer, and (iv) promptly after such Exchange
Registration Statement is declared effective, commence the Exchange Offer. The
Exchange Registration Statement shall be on the appropriate form permitting
registration of the Exchange Securities to be offered in exchange for the
Registrable Securities and to permit resales of Securities held by
broker-dealers as contemplated by Section 2(c) below.

 

6

 

(c)           If an Exchange Registration
Statement is required pursuant to Section 2(b) above, the Company
further agrees to use its reasonable best efforts to commence and complete the
Exchange Offer within 45 days after the date the Exchange Registration
Statement is declared effective by the Commission, hold the Exchange Offer open
for at least 20 days (or longer if required by applicable law) and  exchange Exchange Securities for all Registrable Securities
that have been properly tendered and not withdrawn on or prior to the expiration
of the Exchange Offer.  The Exchange
Offer shall be deemed to have been completed upon the earlier to occur of (i) the
Company having exchanged the Exchange Securities for all outstanding
Registrable Securities pursuant to the Exchange Offer and (ii) the Company
having exchanged, pursuant to the Exchange Offer, Exchange Securities for all
Registrable Securities that have been properly tendered and not withdrawn
before the expiration of the Exchange Offer, which shall be on a date that is
at least 20 days following the commencement of the Exchange Offer; provided,
however, that the Exchange Offer will be completed only if the Exchange
Securities  and related guarantee received by
holders (other than Restricted Holders) in the Exchange Offer for Registrable Securities
are, upon receipt, transferable by each such holder without restriction under
the Securities Act and without material restrictions under the blue sky or
securities laws of a substantial majority of the States of the United States of
America, it being understood that broker-dealers receiving Exchange Securities
will be subject to certain prospectus delivery requirements with respect to
resale of the Exchange Securities.  The
Company agrees (x) to include in the Exchange Registration Statement a prospectus
for use in any resales by any holder of Exchange Securities that is a
broker-dealer and (y) to keep such Exchange Registration Statement
effective for a period (the “Resale Period”) beginning when Exchange
Securities are first issued in the Exchange Offer and ending upon the earlier
of the expiration of the 120th day after the Exchange Offer has been completed
or such time as such broker-dealers no longer own any Registrable
Securities.  With respect to such Exchange
Registration Statement, such holders shall have the benefit of the rights of
indemnification and contribution set forth in Sections 6(a), (c), (d) and (e) hereof.

 

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

 

7

 

(d)           If any of the
Securities are not Freely Tradable by the 366th calendar day following the
Closing Date and on or prior to the time the Exchange Offer is completed, any
law or the existing Commission interpretations are changed such that (i) the
debt securities or the related guarantee received by holders other than
Restricted Holders in the Exchange Offer for Registrable Securities are not or
would not be, upon receipt, transferable by each such holder without
restriction under the Securities Act, (ii) for any other reason the
Exchange Offer is not consummated on or prior to the 366th calendar day
following the Closing Date or (iii) the Exchange Offer is not available to
any holder of the Securities by reason of U.S. law or Commission policy (other
than due solely to the status of such holder as an affiliate of the Company
within the meaning of the Securities Act or as an Exchanging Dealer), then the
Company shall, in lieu of (or, in the case of clause (iii), in addition to)
conducting the Exchange Offer contemplated by Section 2(b), file under the
Securities Act as soon as practicable, but no later than the later of 20 days
after the time such obligation to file arises, a “shelf” registration statement
providing for the registration of, and the sale on a continuous or delayed
basis by the holders of, all of the Registrable Securities, pursuant to Rule 415
or any similar rule that may be adopted by the Commission (such filing,
the “Shelf Registration” and such registration statement, the “Shelf
Registration Statement”).  The
Company agrees to use its reasonable best efforts (x) to cause the Shelf
Registration Statement to become or be declared effective and to keep such
Shelf Registration Statement continuously effective for a period ending on the
earlier of the second anniversary of the Effective Time or such time as there
are no longer any Registrable Securities outstanding; provided, however, that (I) no
holder shall be entitled to be named as a selling securityholder in the Shelf
Registration Statement or to use the prospectus forming a part thereof for
resales of Registrable Securities unless such holder is an Electing Holder and (II) the
Company shall be permitted to take any action that would suspend the
effectiveness of a Shelf Registration Statement or result in holders covered by
a Shelf Registration Statement not being able to offer and sell such Securities
if (i) such action is required by law or (ii) such action is taken by
the Company in good faith and for valid business reasons involving a material
undisclosed event, and (y) after the Effective Time of the Shelf
Registration Statement, within 30 days following the request of any holder that
is not then an Electing Holder, to take any action reasonably necessary to
enable such holder to use the prospectus forming a part thereof for resales of
Registrable Securities, including, without limitation, any action necessary to
identify such holder as a selling securityholder in the Shelf Registration
Statement; provided, however, that nothing in this clause (y) shall
relieve any such holder of the obligation to return a completed and signed
Notice and Questionnaire to the Company in accordance with Section 3(d)(iii) hereof.  The Company further agrees to supplement or
make amendments to the Shelf Registration Statement, as and when required by
the rules, regulations or instructions applicable to the registration form used
by the Company for such Shelf Registration Statement or by the Securities Act
or rules and regulations thereunder for shelf registration, and the
Company agrees to furnish to each Electing Holder copies of any such supplement
or amendment prior to its being used or promptly following its filing with the
Commission.

 

8

 

(e)           In the event that (i) the
Exchange Registration Statement required pursuant to Section 2(b) has
not become effective by the Commission by the 400th calendar day following the
Closing Date or the Shelf Registration Statement required pursuant to Section 2(d) has
not become effective by the Commission by the 30th day following the day such
registration statement is required to be filed under Section 2(d), or (ii) the
Exchange Offer has not been completed within 45 business days after the initial
effective date of the Exchange Registration Statement relating to the Exchange
Offer (if the Exchange Offer is then required to be made) or (iii) any
Exchange Registration Statement or Shelf Registration Statement required by Section 2(b) or
2(d) hereof is filed and declared effective but shall thereafter either be
withdrawn by the Company or shall become subject to an effective stop order
issued pursuant to Section 8(d) of the Securities Act suspending the
effectiveness of such registration statement (except as specifically permitted
herein) without being succeeded immediately by an additional registration
statement filed and declared effective (each such event referred to in clauses (i) through
(iii), a “Registration Default” and each period during which a
Registration Default has occurred and is continuing, a “Registration Default
Period”), then, as liquidated damages for such Registration Default,
subject to the provisions of Section 9(b), special interest (“Special
Interest”), in addition to the Base Interest, shall accrue at a per annum
rate of 0.125% for the first 90 days of the Registration Default Period, at a
per annum rate of 0.25% for the second 90 days of the Registration Default
Period, at a per annum rate of 0.375% for the third 90 days of the Registration
Default Period and at a per annum rate of 0.5% thereafter for the remaining
portion of the Registration Default Period; provided, however, that Special
Interest shall not accrue if the failure of the Company to comply with its
obligations hereunder is a result of the failure of any of the holders,
underwriters, Purchasers or placement or sales agents to fulfill their
respective obligations hereunder; and provided, further, Special Interest shall
only accrue until, but excluding, the earlier of (1) the date on which
such Registration Default has been cured or (2) the date on which the
Securities accruing such Special Interest cease to be Registrable
Securities.  Special Interest accrued for
any period shall be payable at the relevant interest payment date for such
period under the terms of the Securities.

 

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

 

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

 

9

 

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

 

3.             Registration Procedures.

 

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

 

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

 

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

 

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

 

(i)        use its reasonable best efforts to prepare
and file with the Commission an Exchange Registration Statement on any form
which may be utilized by the Company and which shall permit the Exchange Offer
and resales of Exchange Securities by broker-dealers during the Resale Period
to be effected as contemplated by Section 2(c), and use its best
reasonable efforts to cause such Exchange Registration Statement to become
effective no later than 30 days after the 366th calendar day following the
Closing Date;

 

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

 

10

 

(iii)       after the Effective Time of the Exchange
Registration Statement and during the Resale Period promptly notify each
broker-dealer that has requested copies of the prospectus included in such
registration statement, and confirm such advice in writing, (A) with
respect to such Exchange Registration Statement or any post-effective
amendment, when the same has become effective, (B) of the issuance by the
Commission of any stop order suspending the effectiveness of such Exchange
Registration Statement or the initiation or threatening of any proceedings for
that purpose, (C) of the receipt by the Company of any notification with
respect to the suspension of the qualification of the Exchange Securities for
sale in any jurisdiction or the initiation or threatening of any proceeding for
such purpose, or (D) at any time during the Resale Period when a
prospectus is required to be delivered under the Securities Act, that such
Exchange Registration Statement, prospectus, prospectus amendment or supplement
or post-effective amendment does not conform in all material respects to the
applicable requirements of the Securities Act and the Trust Indenture Act and
the rules and regulations of the Commission thereunder or contains an
untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing, which such notice, in
the case of clauses (B), (C) and (D) shall require any broker-dealer
to suspend the use of such prospectus until further notice;

 

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

 

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

 

(vi)       use its reasonable best efforts to (A) register
or qualify the Exchange Securities under the securities laws or blue sky laws
of such 

 

11

 

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

 

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

 

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

 

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

 

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

 

(ii)       prior to the Effective Time of the Shelf
Registration Statement, mail the Notice and Questionnaire to the holders of
Registrable Securities; no holder shall be entitled to be named as a selling
securityholder in the Shelf Registration Statement as of the Effective Time,
and no holder shall be entitled to use the prospectus forming a part thereof
for resales of Registrable Securities at any time, unless such holder has
returned a completed and signed Notice and Questionnaire to the Company by the
deadline for response set forth therein; 

 

12

 

provided, however, holders of Registrable Securities shall
have at least 28 calendar days from the date on which the Notice and
Questionnaire is first mailed to such holders to return a completed and signed
Notice and Questionnaire to the Company;

 

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

 

(iv)      after the Effective Time of the Shelf
Registration Statement, except as permitted hereunder, as soon as reasonably
practicable prepare and file with the Commission such amendments and
supplements to such Shelf Registration Statement and the prospectus included
therein as may be necessary to effect and maintain the effectiveness of such
Shelf Registration Statement for the period specified in Section 2(d) hereof
and as may be required by the applicable rules and regulations of the
Commission and the instructions applicable to the form of such Shelf
Registration Statement, and furnish to the Electing Holders copies of any such
supplement or amendment simultaneously with or prior to its being used or filed
with the Commission;

 

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

 

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

 

(vii)       for a reasonable period prior to the filing
of such Shelf Registration Statement, and throughout the period specified in Section 2(d) make
available at reasonable times at the Company’s principal place of business or
such other reasonable place for inspection by the persons referred to in Section 3(d)(vi) above
who shall certify to the Company that they have a current intention to sell the
Registrable Securities pursuant to the Shelf Registration such financial and 

 

13

 

other
information and books and records of the Company, and cause the officers,
employees, counsel and independent certified public accountants of the Company
to respond to such inquiries, as shall be reasonably necessary, in the
reasonable judgment of the respective counsel referred to in such Section, to
conduct a reasonable investigation within the meaning of Section 11 of the
Securities Act; provided, however, that each such
party shall be required to maintain in confidence and not to disclose to any
other person any information or records reasonably designated by the Company as
being confidential, until such time as (A) such information becomes a
matter of public record (whether by virtue of its inclusion in such
registration statement or otherwise), or (B) such person shall be required
so to disclose such information pursuant to a subpoena or order of any court or
other governmental agency or body having jurisdiction over the matter (subject
to the requirements of such order, and only after such person shall have given
the Company prompt prior written notice of such requirement), or (C) such
information is set forth in such Shelf Registration Statement or the prospectus
included therein or in an amendment to such Shelf Registration Statement or an
amendment or supplement to such prospectus in order that such Shelf
Registration Statement, prospectus, amendment or supplement, as the case may
be, complies with applicable requirements of the federal securities laws and
the rules and regulations of the Commission and does not contain an untrue
statement of a material fact or omit to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing;

 

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

 

14

 

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

 

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

 

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

 

15

 

Registrable
Securities covered by such prospectus or any such supplement or amendment
thereto;

 

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

 

(xiii)  unless any Registrable
Securities shall be in book-entry only form, cooperate with the Electing
Holders and the managing underwriters, if any, to facilitate the timely preparation
and delivery of certificates representing Registrable Securities to be sold,
which certificates, if so required by any securities exchange upon which any
Registrable Securities are listed, shall be penned, lithographed or engraved,
or produced by any combination of such methods, on steel engraved borders, and
which certificates shall not bear any restrictive legends; and, in the case of
an underwritten offering, enable such Registrable Securities to be in such
denominations and registered in such names as the managing underwriters may
request at least two business days prior to any sale of the Registrable
Securities;

 

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

 

16

 

(xv)     whether or not an agreement of the type
referred to in Section 3(d)(xiv) hereof is entered into and whether or not
any portion of the offering contemplated by the Shelf Registration is an
underwritten offering or is made through a placement or sales agent or any
other entity, (A) make such representations and warranties to the Electing
Holders and the placement or sales agent, if any, therefor and the underwriters,
if any, thereof in form, substance and scope as are customarily made in
connection with an offering of debt securities pursuant to any appropriate
agreement or to a registration statement filed on the form applicable to the
Shelf Registration; (B) obtain an opinion of counsel to the Company in
customary form and covering such matters, of the type customarily covered by
such an opinion, as the managing underwriters, if any, or as any Electing
Holders of at least 20% in aggregate principal amount of the Registrable
Securities at the time outstanding may reasonably request, addressed to such
Electing Holder or Electing Holders and the placement or sales agent, if any,
therefor and the underwriters, if any, thereof and dated the effective date of
such Shelf Registration Statement (or if such Shelf Registration Statement
contemplates an underwritten offering of a part or all of the Registrable
Securities, dated the date of the closing under the underwriting agreement
relating thereto) (it being agreed that the matters to be covered by such
opinion shall include the due incorporation, organization or formation and good
standing of the Company and the Guarantors; the qualification of the Company
and the Guarantors to transact business as foreign corporations; the due
authorization, execution and delivery of the relevant agreement, if any, of the
type referred to in Section 3(d)(xiv) hereof; the due authorization,
execution, authentication and issuance, and the validity and enforceability, of
the Securities; the absence of governmental approvals required to be obtained
in connection with the Shelf Registration, the offering and sale of the
Registrable Securities, this Exchange and Registration Rights Agreement or any
agreement of the type referred to in Section 3(d)(xiv) hereof, except such
approvals as may have been obtained or may be required under state securities
or blue sky laws; the material compliance as to form of such Shelf Registration
Statement and any documents incorporated by reference therein and of the
Indenture with the requirements of the Securities Act and the Trust Indenture
Act and the rules and regulations of the Commission thereunder,
respectively; and, if addressed to any underwriters, as of the date of the
opinion and of the Shelf Registration Statement or most recent post-effective
amendment thereto, as the case may be, the absence from such Shelf Registration
Statement and the prospectus included therein, as then amended or supplemented,
and from the documents incorporated by reference therein (in each case other
than the financial statements and other financial or accounting information
contained therein) of an untrue statement of a material fact or the omission to
state therein a material fact necessary to make the statements therein not misleading
(in the case of such documents, in the light of the circumstances existing at
the time that such documents were filed with the Commission under the Exchange
Act)); (C) obtain a “cold comfort” letter or letters from the independent
certified public accountants of the Company addressed to the selling Electing
Holders, the placement or sales 

 

17

 

agent,
if any, therefor or the underwriters, if any, thereof, dated (i) the
effective date of such Shelf Registration Statement and (ii) the effective
date of any prospectus supplement to the prospectus included in such Shelf
Registration Statement or post-effective amendment to such Shelf Registration
Statement which includes unaudited or audited financial statements as of a date
or for a period subsequent to that of the latest such statements included in
such prospectus (and, if such Shelf Registration Statement contemplates an
underwritten offering pursuant to any prospectus supplement to the prospectus
included in such Shelf Registration Statement or post-effective amendment to
such Shelf Registration Statement which includes unaudited or audited financial
statements as of a date or for a period subsequent to that of the latest such
statements included in such prospectus, dated the date of the closing under the
underwriting agreement relating thereto), such letter or letters to be in customary
form and covering such matters of the type customarily covered by letters of
such type; and (D) deliver such documents and certificates, including
officers’ certificates, as may be reasonably requested by any Electing Holders
of at least 20% in aggregate principal amount of the Registrable Securities at
the time outstanding or the placement or sales agent, if any, therefor and the
managing underwriters, if any, thereof to evidence the accuracy of the
representations and warranties made pursuant to clause (A) above or those
contained in Section 5(a) hereof and the compliance with or
satisfaction of any agreements or conditions contained in the underwriting
agreement or other agreement entered into by the Company or the Guarantors;

 

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

 

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

 

(xviii) comply with all applicable rules and regulations of the
Commission, and make generally available to its securityholders as soon as
practicable but in any event not later than 18 months after the effective date
of such Shelf Registration Statement, an earning statement of the Company and
its 

 

18

 

subsidiaries
complying with Section 11(a) of the Securities Act (including, at the
option of the Company, Rule 158 thereunder).

 

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

 

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

 

19

 

material
fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing.

 

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

 

4.             Registration Expenses.

 

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

 

20

 

5.             Representations and Warranties.

 

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

 

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

 

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

 

(c)           The compliance by the Company with all of the provisions
of this Exchange and Registration Rights Agreement and the consummation of the
transactions herein contemplated will not conflict with or result in a breach
of any of the terms or provisions of, or constitute a default under, any
indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which the Company or any subsidiary of 

 

21

 

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

 

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

 

6.             Indemnification.

 

(a)           Indemnification by the
Company and the Guarantors.  The
Company and the Guarantors, jointly and severally, will indemnify and hold
harmless each broker dealer selling Exchange Securities during the Resale
Period, and each of the Electing Holders of Registrable Securities included in
a Shelf Registration Statement against any losses, claims, damages or
liabilities, joint or several, to which such holder may become subject under
the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in
any Exchange Registration Statement or Shelf Registration Statement, as the case
may be, under which such Registrable Securities were registered under the
Securities Act, or any preliminary, final or summary prospectus contained
therein or furnished by the Company to any such holder, or any amendment or
supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse
such holder for any out-of-pocket legal or other expenses reasonably incurred
by them in connection with investigating or defending any such action or claim
as such expenses are incurred; provided, however,
that (i) neither the Company nor any Guarantor shall be liable to any such
person in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in such registration statement,
or preliminary, final or summary prospectus, or amendment or supplement
thereto, in reliance upon and in conformity with written information furnished
to the Company by any holder, placement or sales agent or underwriter 

 

22

 

expressly for use therein
and (ii) such indemnity with respect to any preliminary prospectus shall not
inure to the benefit of any holder, placement agent or underwriter (or any
person controlling such person) to the extent that any loss, claim, damage or
liability of such person results from the fact that such person sold Securities
to a person as to whom it shall be established that there was not sent or
given, a copy of the final prospectus (or the final prospectus as amended or
supplemented) at or prior to the confirmation of the sale of such Securities to
such person if (x) the Company has previously furnished copies thereof in
sufficient quantity to such indemnified person and the loss, claim, damage or
liability of such indemnified person results from an untrue statement or
omission of a material fact contained in such preliminary prospectus which was
corrected in the final prospectus (or the final prospectus as amended or
supplemented) and (y) such loss, liability, claim, damage or expense would have
been eliminated by the delivery of such corrected final prospectus or the final
prospectus as then amended or supplemented.

 

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

 

(c)           Notices of Claims,
Etc.  Promptly after receipt
by an indemnified party under Section 6(a) or Section 6(b) above of written
notice of the commencement of any action, such indemnified party shall, if a
claim in respect thereof is to be made against an indemnifying party pursuant
to the indemnification provisions of or contemplated by this Section 6, notify
such indemnifying party in writing of the commencement of such action; but the
omission so to notify the indemnifying party shall not relieve it from any
liability which it may have to any indemnified party otherwise than under the
indemnification provisions of or contemplated by 

 

23

 

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

 

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

 

24

 

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

 

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

 

7.             Underwritten Offerings.

 

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

 

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

 

25

 

8.             Rule 144.

 

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

 

9.             Miscellaneous.

 

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

 

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

 

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

 

26

 

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

 

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

 

(f)            Governing Law.  This Exchange and Registration Rights
Agreement shall be governed by and construed in accordance with the laws of the
State of New York.

 

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

 

(h)           Entire Agreement;
Amendments.  This Exchange and
Registration Rights Agreement and the other writings referred to herein
(including the Indenture and the form of Securities) or delivered pursuant
hereto which form a part hereof contain the entire understanding of the parties
with respect to its subject matter.  This
Exchange and Registration Rights Agreement supersedes all prior agreements and
understandings between the parties with respect to its subject matter.  This Exchange and Registration Rights
Agreement may be amended and the observance of any term of this Exchange and
Registration Rights Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively) only by a
written instrument duly executed by the Company and the holders of at least a
majority in aggregate principal amount of the Registrable Securities at the
time outstanding.  Each holder of any of
the Registrable Securities at the time or thereafter 

 

27

 

outstanding shall be bound
by any amendment or waiver effected pursuant to this Section 9(h), whether or
not any notice, writing or marking indicating such amendment or waiver appears
on such Registrable Securities or is delivered to such holder.

 

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

 

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

 

28

 

If the foregoing is in accordance with your
understanding, please sign and return to us five counterparts hereof, and upon
the acceptance hereof by you, on behalf of each of the Purchasers, this letter
and such acceptance hereof shall constitute a binding agreement between each of
the Purchasers, the Guarantors and the Company. 
It is understood that your acceptance of this letter on behalf of each
of the Purchasers is pursuant to the authority set forth in a form of Agreement
among Purchasers, the form of which shall be submitted to the Company for
examination upon request, but without warranty on your part as to the authority
of the signers thereof.

 

 

Very truly yours,

 

 

HUNTSMAN INTERNATIONAL LLC

 

 

	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

[Signature
page to Exchange and Registration Rights Agreement]

 

 

	
   

  	
  GUARANTORS

  
	
   

  	
   

  
	
   

  	
  AIRSTAR CORPORATION

  
	
   

  	
  EUROFUELS LLC

  
	
   

  	
  EUROSTAR INDUSTRIES LLC

  
	
   

  	
  HUNTSMAN EA HOLDINGS LLC

  
	
   

  	
  HUNTSMAN ETHYLENEAMINES LTD.

  
	
   

  	
  HUNTSMAN INTERNATIONAL FINANCIAL LLC

  
	
   

  	
  HUNTSMAN INTERNATIONAL
  FUELS, L.P.

  
	
   

  	
  HUNTSMAN PROPYLENE
  OXIDE HOLDINGS LLC

  
	
   

  	
  HUNTSMAN PROPYLENE
  OXIDE LTD.

  
	
   

  	
  HUNTSMAN TEXAS
  HOLDINGS LLC

  
	
   

  	
  HUNTSMAN ADVANCED MATERIALS AMERICAS INC.

  
	
   

  	
  HUNTSMAN ADVANCED MATERIALS LLC

  
	
   

  	
  HUNTSMAN AUSTRALIA INC.

  
	
   

  	
  HUNTSMAN CHEMICAL COMPANY LLC

  
	
   

  	
  HUNTSMAN CHEMICAL FINANCE CORPORATION

  
	
   

  	
  HUNTSMAN CHEMICAL PURCHASING CORPORATION

  
	
   

  	
  HUNTSMAN ENTERPRISES, INC.

  
	
   

  	
  HUNTSMAN EXPANDABLE POLYMERS COMPANY, LC

  
	
   

  	
  By: Huntsman International Chemicals Corporation,
  its Sole

  
	
   

  	
         Member and Manager

  
	
   

  	
  HUNTSMAN FUELS, L.P.

  
	
   

  	
  HUNTSMAN GROUP INTELLECTUAL PROPERTY HOLDINGS
  CORPORATION

  
	
   

  	
  HUNTSMAN HEADQUARTERS CORPORATION

  
	
   

  	
  HUNTSMAN INTERNATIONAL CHEMICALS CORPORATION

  
	
   

  	
  HUNTSMAN INTERNATIONAL TRADING CORPORATION

  
	
   

  	
  HUNTSMAN MA INVESTMENT CORPORATION

  
	
   

  	
  HUNTSMAN MA SERVICES CORPORATION

  
	
   

  	
  HUNTSMAN PETROCHEMICAL CORPORATION

  
	
   

  	
  HUNTSMAN PETROCHEMICAL FINANCE CORPORATION

  
	
   

  	
  HUNTSMAN PETROCHEMICAL PURCHASING CORPORATION

  
	
   

  	
  HUNTSMAN PROCUREMENT CORPORATION

  

 

[Signature page to
Exchange and Registration Rights Agreement]

 

 

	
   

  	
  HUNTSMAN
  PURCHASING, LTD.

  
	
   

  	
  By:
  Huntsman Procurement Corporation, its General Partner

  
	
   

  	
  JK
  HOLDINGS CORPORATION

  
	
   

  	
  PETROSTAR
  FUELS LLC

  
	
   

  	
  PETROSTAR
  INDUSTRIES LLC

  
	
   

  	
  POLYMER MATERIALS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:  

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Executed as a Deed by

  	
  TIOXIDE AMERICAS INC.

  
	
  Troy M. Keller

  	
   

  	
   

  
	
  for and on behalf of

  	
   

  	
   

  
	
  Tioxide Americas Inc

  	
  By:

  	
   

  
	
  in the presence of

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
  Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TIOXIDE GROUP

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

[Signature page to
Exchange and Registration Rights Agreement]

 

 

	
  Accepted
  as of the date hereof:

  
	
   

  
	
   

  
	
  DEUTSCHE
  BANK SECURITIES INC.

  
	
   

  
	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CREDIT
  SUISSE SECURITIES (USA) LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

[Signature
page to Exchange and Registration Rights Agreement]

 

 

SCHEDULE I

 

	
  GUARANTORS

  	
   

  	
  JURISDICTION

  OF

  ORGANIZATION

  
	
  Airstar
  Corporation

  	
   

  	
  Utah

  
	
  Eurofuels
  LLC

  	
   

  	
  Delaware

  
	
  Eurostar
  Industries LLC

  	
   

  	
  Delaware

  
	
  Huntsman
  Advanced Materials Americas Inc.

  	
   

  	
  Delaware

  
	
  Huntsman
  Advanced Materials LLC

  	
   

  	
  Delaware

  
	
  Huntsman
  Australia Inc.

  	
   

  	
  Utah

  
	
  Huntsman
  Chemical Company LLC

  	
   

  	
  Utah

  
	
  Huntsman
  Chemical Finance Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Chemical Purchasing Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  EA Holdings, LLC

  	
   

  	
  Delaware

  
	
  Huntsman
  Enterprises, Inc.

  	
   

  	
  Utah

  
	
  Huntsman
  Ethyleneamines Ltd.

  	
   

  	
  Texas

  
	
  Huntsman
  Expandable Polymers Company, LC

  	
   

  	
  Utah

  
	
  Huntsman
  Fuels, L.P.

  	
   

  	
  Texas

  
	
  Huntsman
  Group Intellectual Property Holdings Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Headquarters Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  International Chemicals Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  International Financial LLC

  	
   

  	
  Delaware

  
	
  Huntsman
  International Fuels, L.P.

  	
   

  	
  Texas

  
	
  Huntsman
  International Trading Corporation

  	
   

  	
  Delaware

  
	
  Huntsman
  MA Investment Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  MA Services Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Petrochemical Corporation

  	
   

  	
  Delaware

  
	
  Huntsman
  Petrochemical Finance Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Petrochemical Purchasing Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Procurement Corporation

  	
   

  	
  Utah

  
	
  Huntsman
  Propylene Oxide Holdings LLC

  	
   

  	
  Delaware

  
	
  Huntsman
  Propylene Oxide Ltd.

  	
   

  	
  Texas

  
	
  Huntsman
  Purchasing, Ltd.

  	
   

  	
  Utah

  
	
  Huntsman
  Texas Holdings LLC

  	
   

  	
  Delaware

  
	
  JK
  Holdings Corporation

  	
   

  	
  Delaware

  
	
  Petrostar
  Fuels LLC

  	
   

  	
  Delaware

  
	
  Petrostar
  Industries LLC

  	
   

  	
  Delaware

  
	
  Polymer
  Materials Inc.

  	
   

  	
  Utah

  
	
  Tioxide
  Americas Inc.

  	
   

  	
  Cayman Islands

  
	
  Tioxide
  Group

  	
   

  	
  United Kingdom

  

 

 

Exhibit A

 

Huntsman International LLC

 

INSTRUCTION TO DTC PARTICIPANTS

 

(Date of Mailing)

 

URGENT - IMMEDIATE ATTENTION REQUESTED

 

DEADLINE FOR RESPONSE:  [DATE]
*

 

The Depository Trust Company (“DTC”)
has identified you as a DTC Participant through which beneficial interests in
the Huntsman International LLC (the “Company”) 51⁄2% Senior Notes due 2016
(the “Securities”) are held.

 

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

 

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

 

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

 

 

Huntsman International LLC

 

Notice of Registration Statement

and

Selling Securityholder Questionnaire

 

(Date)

 

Reference is hereby made to the Exchange and
Registration Rights Agreement (the “Exchange and Registration Rights
Agreement”) among Huntsman LLC (the “Company”), the Guarantors named
therein and the Purchasers named therein. 
Pursuant to the Exchange and Registration Rights Agreement, the Company
has filed with the United States Securities and Exchange Commission (the “Commission”)
a registration statement on Form [    ]
(the “Shelf Registration Statement”) for the registration and resale
under Rule 415 of the Securities Act of 1933, as amended (the “Securities
Act”), of the Company’s 51⁄2% Senior Notes due 2016 (the “Securities”).  A copy of the Exchange and Registration
Rights Agreement has been filed as an exhibit to the Shelf Registration
Statement.  All capitalized terms not
otherwise defined herein shall have the meanings ascribed thereto in the
Exchange and Registration Rights Agreement.

 

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

 

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

 

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

 

2

 

ELECTION

 

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

 

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

 

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

 

3

 

QUESTIONNAIRE

 

	
  (1)

  	
  (a)

  	
  Full Legal Name of Selling Securityholder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (2)

  	
  Address for Notices to Selling Securityholder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
   

  	
   

  
	
   

  	
  Fax:

  	
   

  	
   

  
	
   

  	
  Contact Person:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
  Beneficial Ownership of Securities:

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  Principal amount of Registrable Securities beneficially owned:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Principal amount of Securities other than Registrable Securities
  beneficially owned:

  
	
   

  	
   

  	
   

  
	
   

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

  	
   

  
	
   

  	
   

  
	
   

  	
  (c)

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

  
	
   

  	
   

  	
  Statement:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  	
   

  
										

 

4

 

	
  (4)

  	
  Beneficial Ownership of Other Securities of the Company:

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  State any exceptions here:

  	
   

  
	
   

  	
   

  
	
  (5)

  	
  Relationships with the Company:

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  State any exceptions here:

  
	
   

  	
   

  
	
  (6)

  	
  Plan of Distribution:

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  State any exceptions here:

  

 

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

 

5

 

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

 

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

 

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

 

	
  (i)

  	
   

  	
  To
  the Company:

  	
   

  	
  Huntsman
  International LLC

  
	
   

  	
   

  	
   

  	
   

  	
  500
  Huntsman Way

  
	
   

  	
   

  	
   

  	
   

  	
  Salt
  Lake City, Utah  84108

  
	
   

  	
   

  	
   

  	
   

  	
  Attention:  General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  With
  a copy to:

  	
   

  	
  Vinson &
  Elkins L.L.P.

  
	
   

  	
   

  	
   

  	
   

  	
  2300
  First City Tower

  
	
   

  	
   

  	
   

  	
   

  	
  1001
  Fannin

  
	
   

  	
   

  	
   

  	
   

  	
  Houston,
  TX  77002

  
	
   

  	
   

  	
   

  	
   

  	
  Attention:  Jeffery B. Floyd

  

 

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

 

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

 

	
  Dated:

  	
   

  	
   

  

 

6

 

	
   

  	
   

  
	
   

  	
  Selling
  Securityholder

  
	
   

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

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

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

 

	
   

  	
  Huntsman
  International LLC

  
	
   

  	
  500
  Huntsman Way

  
	
   

  	
  Salt
  Lake City, Utah  84108

  

 

7

 

Exhibit B

 

NOTICE OF TRANSFER PURSUANT TO
REGISTRATION STATEMENT

 

[insert Trustee]

Huntsman
International LLC

c/o
[insert Trustee]

[                                ]

[                                ]

Attention:  Huntsman Administrator

 

Re:            Huntsman
International LLC (the “Company”)

51⁄2% Senior Notes due 2016

 

Dear
Sirs:

 

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

 

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

 

Dated:

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Name)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Authorized
  Signature)

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