5. Business Assets

Investments

Indorama Ventures PCL operates as a holding company; therefore our main
assets are the investments. As of 31 December 2010 and 31 December 2009,
we had net book value of our investments in subsidiaries as stated in
our separate financial statement under the cost method equal to Baht
18,525 million and Baht 9,622 million or 94.07% and 88.40% of total
assets in our separate financial statement, respectively. Details are as
follows:

+---------------------------+-----------+--------------+--------------+
|                           |           | Unit: Baht   |              |
|                           |           | million      |              |
+---------------------------+-----------+--------------+--------------+
| Subsidiaries¹             | Ownership | Net Book     |              |
|                           | Interest  | Value of     |              |
|                           |           | Investment   |              |
|                           | (Direct)  | as of        |              |
|                           | (%)       |              |              |
+---------------------------+-----------+--------------+--------------+
|                           |           | December 31, | December 31, |
|                           |           | 2009         | 2010         |
+---------------------------+-----------+--------------+--------------+
| Indorama Petrochem Ltd.   | 100.00    | 2,526        | 2,526        |
+---------------------------+-----------+--------------+--------------+
| TPT Petrochemicals PCL    | 99.96     | 2,278        | 5,182        |
+---------------------------+-----------+--------------+--------------+
| Indorama Polyesters       | 64.94     | 1,474        | 1,474        |
| Industries PCL POPCL      |           |              |              |
+---------------------------+-----------+--------------+--------------+
| Indorama Holdings Ltd.    | 99.81     | 1,951        | 2,001        |
+---------------------------+-----------+--------------+--------------+
| Indorama Polymers PCL     | 72.60     | 1,393        | 7,220        |
+---------------------------+-----------+--------------+--------------+
| IVL Belgium N.V.          | 100.00    | -            | 122          |
|                           |           |              |              |
|                           | .         |              |              |
+---------------------------+-----------+--------------+--------------+
| Total Book Value          |           | 9,622        | 18,525       |
+---------------------------+-----------+--------------+--------------+

Remarks: (1) Only companies which are held directly by Indorama Ventures
PCL

Property, Plant and Equipment

Indorama Ventures PCL operates as a holding company; therefore, our main
fixed assets as stated in consolidated financial statement are property,
plant and equipment of subsidiaries. As of 31 December 2010 and 31
December 2009, we had net book value of plant and equipment of
subsidiaries used in our operation as stated in our consolidated
financial statement equal to Baht 48,748 million and Baht 49,505 million
or 94.00% and 97.65% of total assets. Details are as follows:

  ----------------------------------------------------------------------------------------
                      Unit: Baht million                                 
  -- ---------------- --------------------------------- ---------------- -----------------
     Type                                               Net Book Value   
                                                        after            
                                                        Accumulated      
                                                        Depreciation     

                                                        31 December 2009 31 December 2010

     Land and land                                      1,085            1,108
     improvements                                                        

     Buildings and                                      3,785            4,020
     building                                                            
     improvements                                                        

     Machinery and                                      2,355            3,768
     equipment –                                                         
     textile                                                             
     production                                                          

     Machinery and                                      38,534           38,735
     equipment –                                                         
     others                                                              

     Office                                             222              230
     furniture,                                                          
     fixtures, and                                                       
     equipment                                                           

     Transportation                                     80               70
     equipment                                                           

     Construction in                                    3,444            817
     progress                                                            

     Total Net Book                                     49,505           48,748
     Value                                                               
  ----------------------------------------------------------------------------------------

Remark: As of 31 December 2010, we mortgaged land, buildings and
machineries with financial institutions of Baht 49,761.60 million as
collateral to secure loans from financial institutions

Intangible Assets

Indorama Ventures PCL had net book value of intangible assets as of 31
December 2010 and 31 December 2009 equal to Baht 760 million and Baht
879 million or 0.97% and 1.18% of total assets, respectively. Details
are as follows.

+------------------------------------+----------------+----------------+
|                                    |                | Unit: Baht     |
|                                    |                | million        |
+====================================+================+================+
| Type                               | Net Book Value |                |
+------------------------------------+----------------+----------------+
|                                    | 31 December    | 31 December    |
|                                    | 2009           | 2010           |
+------------------------------------+----------------+----------------+
| Right Acquired                     | 44             | 40             |
+------------------------------------+----------------+----------------+
| Software Licenses                  | 106            | 76             |
+------------------------------------+----------------+----------------+
| Customer Lists                     | 340            | 266            |
+------------------------------------+----------------+----------------+
| Technology License                 | 389            | 378            |
+------------------------------------+----------------+----------------+
| Total Book Value of Intangible     | 879            | 760            |
| Assets                             |                |                |
+------------------------------------+----------------+----------------+

Remarks: 1. Right Acquired means right to use some types of assets for
business

2.  Software Licenses means right to use software duly according to
    condition of software owner

3.  Customer Lists means the list of customers which are recorded in
    Company’s database

4.  Technology License means technology license in connection to the
    production process of PTA and plant construction

Trademark in connection with our business

We use a number of trademarks, trade names and service marks in
connection with our business. We market our PET products under brand
names that include Ramapet® and PreformanceTM, and polyester fiber and
yarn under brand names that include Ambs®, Colyar and Cuddler, among
other names. A number of these marks are, or are in the process of
being, registered in Thailand, the United States and Europe.

The Indorama name does not belong to us. We are a part of an informal
Indorama Group, which consists of three independently managed associate
groups, namely ourselves, the S.P. Lohia Group Indonesia and the O.P.
Lohia Group India. The Indorama Group was founded by Mr. M.L. Lohia in
1976 in Indonesia, and each of the groups is currently managed by one of
Mr. M.L. Lohia’s sons. We have a non-exclusive license for its use
pursuant to a License Agreement with Lohia Global Holdings Limited, a
company controlled by Mr. M.L. Lohia. The S.P. Lohia Group and the O.P.
Lohia Group also use the Indorama name.

As of 31 December 2010, we registered trademarks both in domestic and
international. Our major registered trademarks are shown below.

+------------+----------+--------+----------+------------+-----------+
| Logo       | Type of  | Pr     | Ex       | Number of  | Owner     |
|            | Logo     | oducts | piration | Logos      |           |
+============+==========+========+==========+============+===========+
| []         | T        | Type   | May 14,  | same       | Indorama  |
|            | rademark | 1,     | 2017     | format     | Polymers  |
|            |          |        |          |            |           |
|            |          | 17, 21 |          | 4 logo     |           |
+------------+----------+--------+----------+------------+-----------+
| “TPT”      | T        | Type 1 | S        | 1 logo     | TPT       |
|            | rademark |        | eptember |            | Petro     |
|            |          |        | 5, 2015  |            | chemicals |
+------------+----------+--------+----------+------------+-----------+
| []         | T        | Type   | March 5, | 1 logo     | Indorama  |
|            | rademark | 23     | 2016     |            | Polyester |
|            |          |        |          |            | I         |
|            |          |        |          |            | ndustries |
+------------+----------+--------+----------+------------+-----------+
| []         | T        | Type   | March 5, | 2 logo     | Indorama  |
|            | rademark | 23     | 2016     |            | Polyester |
|            |          |        |          |            | I         |
|            |          |        |          |            | ndustries |
+------------+----------+--------+----------+------------+-----------+
| []         | T        | Type   | October  | 1 logo     | Indorama  |
|            | rademark | 23     | 4, 2017  |            | Polyester |
|            |          |        |          |            | I         |
|            |          |        |          |            | ndustries |
+------------+----------+--------+----------+------------+-----------+
| []         | T        | Type   | December | 1 logo     | Indorama  |
|            | rademark | 23     | 25, 2016 |            | Polyester |
|            |          |        |          |            | I         |
|            |          |        |          |            | ndustries |
+------------+----------+--------+----------+------------+-----------+
| []         | T        | Type   | December | 2 logo     | Indorama  |
|            | rademark | 23     | 25, 2016 |            | Polyester |
|            |          |        |          |            | I         |
|            |          |        |          |            | ndustries |
+------------+----------+--------+----------+------------+-----------+
| []         | T        | Type   | December | 1 logo     | Indorama  |
|            | rademark | 23     | 25, 2016 |            | Polyester |
|            |          |        |          |            | I         |
|            |          |        |          |            | ndustries |
+------------+----------+--------+----------+------------+-----------+
| []         | T        | Type   | December | 1 logo     | Indorama  |
|            | rademark | 23     | 25, 2016 |            | Polyester |
|            |          |        |          |            | I         |
|            |          |        |          |            | ndustries |
+------------+----------+--------+----------+------------+-----------+
| []         | T        | Type   | December | 1 logo     | Indorama  |
|            | rademark | 23     | 25, 2016 |            | Polyester |
|            |          |        |          |            | I         |
|            |          |        |          |            | ndustries |
+------------+----------+--------+----------+------------+-----------+
| []         | T        | Type   | December | 2 logo     | Indorama  |
|            | rademark | 23     | 25, 2016 |            | Polyester |
|            |          |        |          |            | I         |
|            |          |        |          |            | ndustries |
+------------+----------+--------+----------+------------+-----------+

Remarks:

(1) Product type 1 means unprocessed artificial resins, unprocessed
    plastics, unprocessed Polyethylene Terephthalate

(2) Product type 17 means semi-finished plastics, compressed rolled
    plastics used as a raw material, semi-finished artificial resins,
    semi-finished Polyethylene Terephthalate

(3) Product type 21 means a hot drinks thermos, sheets, calabash
    bottles, cold drinks thermos, milk cartons not made from precious
    metals, butter dishes, kitchen containers not made from precious
    metals, cosmetics containers, fruit dishes, cups not made from
    precious metals, bathroom soap dishes, dishes not made from precious
    metals, drinks canteens for travelling, drinks containers, egg cups
    not made from precious metals, non-electric milk bottle warmers,
    flasks or canteens not made from precious metals, jugs not made from
    precious metals, salad bowls not made from precious metals,
    condiments containers.

(4) Product type 23 means Polyester Fiber

Lease Agreement

In 31 December 2010, the Company has made major lease agreements of over
3 years term for business purpose. The following summarizes our
long-term lease agreements.

PET Business

AlphaPet

AlphaPet has entered into a ground lease with BP for approximately 40
acres of land located within the Decatur site to construct the
improvements necessary to operate the AlphaPet PET Facility. The lease
is for a term of 20 years, extendable at AlphaPet’s option for two
extension terms of 20 years each.

Orion Global Pet

Orion Global Pet has entered into a sub-lease agreement with UAB
Klaipeda Free Economic Zone Management Company (the “Management
Company”) for a land plot of approximately 3,7613 hectares. The
sub-lease is for a term of 99 years.

Polyester Fiber and Yarn Business

Indorama Polyesters Industries

Indorama Polyesters Industries has entered into a land lease agreement
in the Map Ta Phut Industrial Estate with the IEAT relating to facility
construction and performing business in polyester production (Polyester
Staple Fibre, Polyester Pre-Oriented Yarn, Polyester Draw Texture Yarn)
with a total area of approximately 200 Rai. The term of the lease is 30
years, starting from May 13, 1988 and expiring on May 12, 2018 with the
yearly rental rate of Baht 27,600 per Rai. Upon every ten-year period,
the leaser is entitled to a 10% adjustment of then prevailing rent. On
the last year, no less than 6 months before contract termination, if the
lessee wishes to continue to rent the property, the lessee must report
in written document to the leaser and the leaser may continue the
contract for 20 more years. Indorama Polyesters Industries assigned the
leasehold rights under such lease agreement to secure the loan and
credit line received from a bank in Thailand.

PTA Business

TPT Petrochemicals

TPT Petrochemicals has entered into a land lease agreement in the Map Ta
Phut Industrial Estate with the IEAT relating to facility construction
and performing business in PTA production with a total area of
approximately 150 Rai. The term of the lease is 30 years, starting from
February 6, 1992 and expiring on February 6, 2022 with the yearly rental
rate of Baht 27,600 per Rai. Upon every ten-year period, the leaser is
entitled to a 10% adjustment of then prevailing rent at every 10 year.
On the last year, no less than 6 months before contract termination, if
the lessee wishes to continue to rent the property, the lessee must
report in written document to the leaser and the leaser may continue the
contract for 20 more years

Indorama Petrochem

Indorama Petrochem has entered into a lease agreement in the Eastern
Industrial Estate and Map Ta Phut Industrial Estate with Eastern Fluid
Transport Co., Ltd. relating to land for installation, operating and
maintenance of the piping system and the pipe including other support
system for transmission of products through the pipe of Indorama
Petrochem PTA facility. The term of the lease is 15 years, starting from
January 9, 2006 and expiring on January 8, 2021 with the rental rate
specified in the agreement.

Indorama Petrochem has also entered into a tank farm storage and service
agreement with Thai Tank Terminal Limited on December 8, 2004 for the
storage of PX and acetic acid in its PTA production. The lease term is
15 years renewable at Indorama Petrochem’s option at a rental rate
specified in the agreement.

IRH Rotterdam

As part of our acquisition of the Eastman Chemicals’ assets in
Rotterdam, IRH Rotterdam has the benefit of a transfer deed whereby IRH
Rotterdam has obtained the temporary leasehold right originally granted
by the Municipality of Rotterdam to Eastman Chemicals in relation to
four parcels of land on which the IRH Rotterdam PTA facility and the IRP
Rotterdam PET facility are located, as well as the jetty located nearby.
The term of the temporary leasehold right expires on February 20, 2093.
The ground rent is subject to annual adjustment based on the consumer
price index. In addition to the ground rent, the leaseholder also has to
pay berthing dues.

IRH Rotterdam has entered into a sub-lease agreement with IRP Rotterdam
to sub-let the land parcels on which the IRP Rotterdam PET facility is
located. The term of the sub-lease expires on February 20, 2093.

Thai Board of Investment Tax Incentives

Under the Industrial Investment Promotion Act B.E. 2520, the Company and
certain subsidiaries incorporated in Thailand have been granted
privileges by the Board of Investment at various times relating to our
manufacturing of worsted wool yarn, wool top, PTA, PET resin, PET
preforms and closures, and amorphous resin and the operation of the TPT
Petrochemicals cogeneration plant (the “promoted operations”). The
privileges granted, subject to compliance with the terms and conditions
prescribed in the relevant promotional certificates, include:

(a) exemption from payment of import duty on machinery approved by the
Board of Investment;

(b) exemption from payment of income tax on net profit from promoted
operations for a period of eight years from the date on which income is
deemed to be first derived from such operations;

(c) a 50% reduction in the normal income tax rate on the net profit
derived from promoted operations for a period of five years, commencing
from the expiry date in (b) above;

(d) a five-year carry forward period for losses for tax purposes from
promoted operations during the period in (b) above;

(e) income exclusions and additional deductions in computing the taxable
income for promoted operations during the period in (b) above;

(f) exemption from income tax on dividend paid to the shareholders from
the profit of the promoted operations during the corporate income tax
exemption period; and

(g) double deduction of the cost of transportation, electricity and
water supply for corporate income tax purposes for a period of ten
years, from the date on which income is deemed to be first derived from
the promoted operations.

The table below summarizes the expiry dates of our BOI tax incentives
broken down by subsidiary as of 31 December 2010.

+---------------------------+------------------+----------------------+
| Subsidiary                | Year of Expiry   | Year of Expiry for   |
|                           | for Full         | 50%                  |
|                           | Exemption from   |                      |
|                           | Tax              | Reduction in Tax     |
+===========================+==================+======================+
| Asia Pet (Thailand) Ltd.  | 2011             | N/A                  |
|                           |                  |                      |
| (BOI Certificate No.      |                  |                      |
| 1554(1)/2544)             |                  |                      |
+---------------------------+------------------+----------------------+
| Asia Pet (Thailand) Ltd.  | 2016             | N/A                  |
|                           |                  |                      |
| (BOI Certificate          |                  |                      |
| No. 2229(2)/2550)         |                  |                      |
+---------------------------+------------------+----------------------+
| Indorama Polymers PCL     | 2003             | 2008                 |
|                           |                  |                      |
| (BOI Certificate          |                  |                      |
| No. 1223/2538)            |                  |                      |
+---------------------------+------------------+----------------------+
| Indorama Polymers PCL     | 2015             | N/A                  |
|                           |                  |                      |
| (BOI Certificate          |                  |                      |
| No. 1644(2)/2549)         |                  |                      |
+---------------------------+------------------+----------------------+
| Indorama Petrochem Ltd.   | 2014             | 2019                 |
|                           |                  |                      |
| (BOI Certificate          |                  |                      |
| No. 1123(2)/2547)         |                  |                      |
+---------------------------+------------------+----------------------+
| TPT Petrochemical PCL     | 1999             | N/A                  |
|                           |                  |                      |
| (BOI Certificate          |                  |                      |
| No. 1144/2535)            |                  |                      |
+---------------------------+------------------+----------------------+
| TPT Petrochemical PCL     | 2006             | 2011                 |
|                           |                  |                      |
| (BOI Certificate          |                  |                      |
| No. 1335/2540)            |                  |                      |
+---------------------------+------------------+----------------------+
| TPT Petrochemical PCL     | 2014             | 2019                 |
|                           |                  |                      |
| (BOI Certificate          |                  |                      |
| No. 1121(2)/2549)         |                  |                      |
+---------------------------+------------------+----------------------+
| Indorama Polyester        | 2003             | 2008                 |
| Industries PCL            |                  |                      |
|                           |                  |                      |
| (BOI Certificate          |                  |                      |
| No. 1753/2537)            |                  |                      |
+---------------------------+------------------+----------------------+
| Indorama Polyester        | 2006             | 2011                 |
| Industries PCL            |                  |                      |
|                           |                  |                      |
| (BOI Certificate          |                  |                      |
| No. 1315/2539)            |                  |                      |
+---------------------------+------------------+----------------------+
| Indorama Polyester        | has not yet      | has not yet          |
| Industries PCL            | commenced        | commenced            |
|                           |                  |                      |
| (BOI Certificate          | operation of the | operation of the     |
| No. 1271(2)/2552)         | business         | business             |
+---------------------------+------------------+----------------------+

Policy on Investment in Subsidiaries and Associated Companies and Policy
on Management of in Subsidiaries and Associated Companies

The Company will have investments in subsidiaries and associated
companies aggregating not less than 75 percent of the Company’s total
investment in securities. In case, if the Company wishes to make any
material change to the policy or scope of investments, such as lowering
the proportion of investment in subsidiaries and associated companies in
relation to the Company's total investments in securities to less than
75 percent, the Company will obtain prior approval from the shareholders
meeting.

The Company has a policy on investment in subsidiaries and associated
companies of the Company that the Company will invest in business with a
high potential of growth and long-term profitability. Moreover, the
Company will send its representative to be a director of such
subsidiaries and associated companies; such representative might be the
Chairman of the Board of Directors, Chief Executive Officer, Managing
Director, directors, the high level managers of the Company or any third
person who has the qualifications and experience suitable for such
business with no conflict of interest directly with the business of
those subsidiaries. Such representative shall manage and administer the
business of such subsidiaries according to the regulations and
procedures provided in the Articles of Association of the Company and of
such subsidiaries and relevant laws.