Form 20-F 2005

period, creditors may not pursue any individual legal action against the debtor with respect to any claim arising prior to the court
order commencing the bankruptcy proceedings if the objective of such legal action is:
to obtain an order for or payment of a sum of money by the debtor to the creditor (however, the creditor may require that a
court determine the amount due);
to terminate or cancel a contract for non-payment of amounts owed by the creditor; or
to enforce the creditor’s rights against any assets of the debtor.
Contractual provisions such as those contained in indentures that would accelerate the payment of the debtor’s obligations upon
the opening of certain bankruptcy proceedings are not enforceable under French law.
The administrator may terminate or continue executory contracts provided that the debtor fully performs its post-petition contractual
obligations.
If the court orders a judicial reorganization, it can set a time period during which the assets that it deems to be essential to the
continued business of the debtor may not be sold without its consent and it can reschedule the payment of debts owed by the
debtor.
French bankruptcy law assigns priority to the payment of certain preferential creditors, including employees, the bankruptcy court,
officials appointed by the bankruptcy court as required by the regulations relating to bankruptcy proceedings, post-petition creditors,
certain secured creditors essentially in the event of liquidation and the French Treasury.
Material Contracts
We have not entered into any material contracts other than those entered into the ordinary course of business, during the past two
years.
Exchange Controls
Under current French exchange control regulations, there are no limitations on the amount of payments that may be remitted by a
French company to non-French residents. Laws and regulations concerning foreign exchange controls do require, however, that
all payments or transfers of funds made by a French resident to a non-French resident be handled by an authorized accredited
intermediary. In France, all registered banks and substantially all credit establishments (établissements de crédit) are accredited
intermediaries.
Taxation
French taxation of shares
The following is a general summary of the principal French tax consequences of purchasing, owning and disposing of our shares.
This summary may only be relevant to you if you are not a resident of France and you do not hold your shares in connection with
a business conducted in France.
102 Form 20 - F 2005 - Rhodia