Document:

exv10w36

 

Exhibit 10.36

 

SIPEX CORPORATION

as the Company

and

RODFRE
HOLDINGS LLC

as the Purchaser

SECURITIES PURCHASE AGREEMENT

Dated as of March 29, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	SECTION 1. Purchase and Sale of Note
	 	 	1	 
	SECTION 2. Purchaser’s Representations and Warranties
	 	 	2	 
	SECTION 3. Representations, Warranties and Covenants of the Company
	 	 	5	 
	SECTION 4. Covenants
	 	 	11	 
	SECTION 5. Conditions to the Company’s Obligation to Close
	 	 	13	 
	SECTION 6. Conditions to Purchaser’s Obligation to Purchase
	 	 	13	 
	SECTION 7. Miscellaneous
	 	 	15	 

	 	 	 
	SCHEDULE

	 
	 	 
	Schedule A

	 	Wire Instructions
	 
	 	 
	EXHIBITS

	 
	 	 
	Exhibit A

	 	Form of Note
	Exhibit B

	 	Secretary’s Certificate

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SECURITIES PURCHASE AGREEMENT

     THIS SECURITIES PURCHASE AGREEMENT
 (the “Agreement”), dated as of March 29, 2007, by
and between Sipex Corporation, a Delaware corporation (the “Company”), and
Rodfre Holdings LLC (the “Purchaser”), a Delaware Corporation.

     THE PARTIES TO THIS AGREEMENT enter into this Agreement on the basis of the following facts,
intentions and understandings:

     A. In accordance with the terms and conditions of this Agreement, the Company has agreed to
issue and sell, and the Purchaser has agreed to purchase at any time and from time to time from the
date hereof until 5:00 p.m., California Time, June 30, 2008, the Company’s 9% Unsecured Junior
Notes with convertible interest due June 30, 2008 (such note(s), in the form attached hereto as
Exhibit A, as the same may be amended, modified or supplemented from time to time in
accordance with the terms thereof, each a “Note” or collectively, the “Notes”) in
an aggregate amount of up to U.S. $10,000,000.00 (the “Principal Amount”).

     B. Subject to and contingent upon the Securities and Exchange Commission’s (the “SEC”)
declaration of the effectiveness of the Registration Statement that is required to be filed
pursuant to Section 2(a) of the Registration Rights Agreement, dated as of May 26, 2006 by and
among the Company and the buyers listed on the Schedule of Buyers attached thereto, the annual
interest of the Notes shall be, at the option of the Purchaser, convertible into shares of the
common stock, $0.01 par value per share (the “Common Stock”), of the Company on the terms
set forth in the Notes. The shares of Common Stock issuable upon conversion of the accrued
interest on the Notes are referred to herein collectively as the “Conversion Shares.” The
Notes and the Conversion Shares are referred to herein as the “Securities.”

     C. This Agreement and the Notes, and each of the other agreements entered into by the parties
hereto in connection with the transactions contemplated by this Agreement (the
“Transaction”) are referred to herein collectively as the “Transaction Documents.”

     NOW THEREFORE, in consideration of the promises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Purchaser hereby agree as follows:

     SECTION 1. Purchase and Sale of Notes

     (a) Closing of Notes

          (1) Subject to the prior satisfaction (or written waiver) of the conditions set forth in
Sections 5 and 6 of this Agreement, the Company shall have the right, from time to time, to issue
and sell to Purchaser, and Purchaser agrees to purchase from the Company, one or more Notes in
denominations of U.S. $500,000.00 or more, for an aggregate amount not to exceed U.S.
$10,000,000.00. Notwithstanding the foregoing, upon notification to the Purchaser of the
completion of a Change of Control and/or upon repayment by the
Company of all outstanding Notes, pursuant to Section 6(e) of said
Notes, the Purchaser shall be entitled to refuse in its sole
discretion to purchase any more
Notes under this Agreement.

 

 

          (2) The date and time of the sale of each Note (each a “Closing”) shall be at such
place and time as the parties may specify(each a “Closing Date”), and shall be subject to
the satisfaction (or waiver) at each Closing Date of the conditions set forth in Sections 5 and 6
of this Agreement.

     (b) Form
of Payment. On each such Closing Date, (i) Purchaser shall pay the Company for the Note
to be issued and sold to such Purchaser on such Closing Date, by wire transfer of immediately
available funds in accordance with the Company’s written wire instructions attached hereto on
Schedule A (or such other wire instructions as the Company may provide), and (ii) the
Company shall deliver to Purchaser a properly authenticated Note representing the principal amount
of the Note , duly executed on behalf of the Company and registered in the name of the Purchaser,
that the Purchaser is purchasing from the Company pursuant to this Agreement.

     SECTION 2.
Purchaser’s Representations and Warranties. Purchaser represents and warrants to the
Company that as of the date hereof and in respect of each applicable Closing Date:

     (a) Investment Purpose. Purchaser is acquiring the Note, and upon conversion of the Note (if
applicable) owned by it, Purchaser will acquire the Conversion Shares then issuable upon conversion
thereof, for its own account for investment only and not with a view toward, or for resale in
connection with, the public sale or distribution thereof, except pursuant to sales or distributions
registered or exempted under the Securities Act of 1933, as amended (the “Securities Act”).

     (b) Accredited Investor Status. Purchaser is and shall remain an “accredited
investor” as that term is defined in Rule 501(a) of Regulation D under the Securities Act as of
the date of this Agreement.

     (c) Reliance on Exemptions. Purchaser understands that the Securities are being offered and
sold to it in reliance on specific exemptions from the registration requirements of the United
States federal and state securities laws and that the Company is relying in part upon the truth and
accuracy of, and Purchaser’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of Purchaser set forth herein and in the Note in order to
determine the availability of such exemptions and the eligibility of Purchaser to acquire the
Securities.

     (d) Information. Purchaser believes it (i) has been furnished with or believes it has had
full access to all of the information that it considers necessary or appropriate for deciding
whether to purchase the Securities, (ii) has had an opportunity to ask questions and receive
answers from the Company regarding the terms and conditions of the offering of the Securities,
(iii) can bear the economic risk of a total loss of its investment in the Securities and (iv) has
such knowledge and experience in business and financial matters so as to enable it to understand
the risks of and form an investment decision with respect to its investment in the Securities.
Neither such inquiries nor any other due diligence investigations conducted by Purchaser or its
advisors, if any, or its representatives shall limit, modify, amend or affect the Company’s
representations and warranties contained in this Agreement and the Purchaser’s right to rely
thereon.

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     (e) No Governmental Review. Purchaser understands that no United States federal or state
agency or any other government or governmental agency has passed on or made any recommendation or
endorsement of the Securities or the fairness or suitability of an investment in the Securities nor
have such authorities passed upon or endorsed the merits of the offering of the Securities.

     (f) Transfer or Resale. Purchaser understands that none of the Securities have been or will
be registered under the Securities Act or any state securities laws, and the Securities may not be
offered for sale, sold, assigned or transferred without registration under the Securities Act or an
exemption therefrom and that, in the absence of an effective registration statement under the
Securities Act, such Securities may only be sold under certain circumstances as set forth in the
Securities Act, it being understood that nothing in this Agreement shall restrict any
transfer of Securities to (a) the Company or (b) an affiliate of the holder of such Securities
(provided that in the case of (b) above the transferor furnishes the Company with such
certifications, legal opinions or other information as the Company may reasonably request 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).

     (g) Legends.

          (1) Purchaser understands that, until the later of (i) the end of the holding period under
Rule 144(k) of the Securities Act (or any successor provision) and (ii) such time as Purchaser
ceases to be an “affiliate” of the Company as such term is defined in Rule 144 of the Securities
Act, the Note (and all securities issued in exchange therefor or in substitution thereof, other
than Conversion Shares, which shall bear the legend set forth in Section 2(g)(2) of this Agreement,
if applicable) shall bear a legend in substantially the following form:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, ASSIGNED,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION THEREFROM.

     The legend set forth above shall be removed and the Company shall issue a new Note of like
tenor and aggregate principal amount and which shall not bear the restrictive legends required by
this Section 2(g)(1), (i) if, in connection with a sale transaction, such holder provides the
Company with an opinion of counsel reasonably acceptable to the Company to the effect that a public
sale, assignment, pledge or transfer of the Note may be made without registration under the
Securities Act, or (ii) upon expiration of the two-year holding period under Rule 144(k) of the
Securities Act (or any successor rule). The Company shall not require such opinion of counsel for
the sale of Securities in accordance with Rule 144 of the Securities Act in the event that the
Seller provides

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such representations that the Company shall reasonably request confirming compliance with the
requirements of Rule 144.

          (2) Such Purchaser understands that, until the later of (i) the end of the holding period
under Rule 144(k) of the Securities Act (or any successor provision) with respect to the Conversion
Shares issued upon any conversion of the Note, and (ii) such time as Purchaser ceases to be an
“affiliate” of the Company as such term is defined in Rule 144 of the Securities Act, any stock
certificate representing Conversion Shares issued upon such conversion of the Note shall bear a
legend in substantially the following form unless the Note submitted for conversion, does not bear
the legend specified in Section 2(g)(1):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD,
TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR AN EXEMPTION THEREFROM.

     The legend set forth above shall be removed and the Company shall issue the Conversion Shares
without such legend to the holder of the Conversion Shares upon which it is stamped, (i) if such
Conversion Shares have been resold or transferred pursuant to a registration statement under the
Securities Act, as amended, and the registration statement was effective at the time of such
transfer, (ii) if, in connection with a sale transaction, such holder provides the Company with an
opinion of counsel reasonably acceptable to the Company to the effect that a public sale,
assignment, pledge or transfer of the Conversion Shares may be made without registration under the
Securities Act, or (iii) upon the later of (a) expiration of the two-year period under Rule 144(k)
of the Securities Act (or any successor rule) and (b) such time as Purchaser ceases to be an
“affiliate” of the Company as such term is defined in Rule 144 of the Securities Act. The Company
shall not require such opinion of counsel for the sale of Conversion Shares in accordance with Rule
144 of the Securities Act, provided that the Seller provides such representations that the Company
shall reasonably request confirming compliance with the requirements of Rule 144.

          (3) Purchaser understands that, in the event Rule 144(k) as promulgated under the Securities
Act (or any successor rule) is amended to change the two-year period under Rule 144(k) (or the
corresponding period under any successor rule), (i) each reference in Sections 2(g)(1) and 2(g)(2)
of this Agreement to “two (2) years”, the “two-year period” or “two-year
holding period” shall be deemed for all purposes of this Agreement to be references to such
changed period, and (ii) all corresponding references in the Note shall be deemed for all purposes
to be references to the changed period, provided that such changes shall not become effective if
they are otherwise prohibited by, or would otherwise cause a violation of, the then-applicable
federal securities laws.

     (h) Authorization; Enforcement; Validity. The Transaction Documents have been duly and
validly authorized, executed and delivered on behalf of Purchaser and are valid and binding

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agreements of Purchaser enforceable against Purchaser in accordance with their terms, subject
as to enforceability to general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally,
the enforcement of applicable creditors’ rights and remedies and except as the indemnification
agreements of Purchaser may be legally unenforceable.

     (i) Residency. Purchaser is a resident of that country or state specified in its address on
the signature page hereto and executed by it.

     (j) Additional Acknowledgement. Purchaser acknowledges that it has independently evaluated
the merits of the transactions contemplated by this Agreement and the Note and that it has
independently determined to enter into the transactions contemplated hereby and thereby.

     With the exception of Section 2(h), the Purchaser’s representations and warranties made in
this Section 2 are made solely for the purpose of permitting the Company to make a determination
that the offer and sale of the Note pursuant to this Agreement complies with applicable United
States federal and state securities laws and not for any other purpose. Accordingly, other than
Section 2(h), the Company should not rely on such representations and warranties for any other
purpose.

     SECTION 3.
Representations, Warranties and Covenants of the Company. The Company hereby
represents and warrants to, and covenants with, the Purchaser that as of the date hereof and in
respect of each applicable Closing Date subject to such exceptions as set forth in the Company’s
public reports filed with the SEC (the “SEC Filings”) or in a letter from the Company to
Purchaser dated as of a Closing Date (the “Disclosure
Letter”), which exceptions must be non-material and
acceptable to purchaser, acting reasonably:

     (a) Organization. The Company is duly organized and validly existing in good standing under
the laws of the jurisdiction of its organization. Each of the Company and its subsidiaries listed
on Exhibit 21.1 to its Annual Report on Form 10-K for the year ended December 31, 2005 (the
“Subsidiaries”) has full power and authority to own, operate and occupy its properties and
to conduct its business as presently conducted and as described in the Company’s most recently
filed Annual Report on Form 10-K, including all exhibits, supplements and amendments thereto, and
the Company’s most recently filed Quarterly Report on Form 10-Q, including all exhibits,
supplements and amendments thereto and the Company’s current reports on Form 8-K filed since the
date of the Company’s last Form 10-K or 10-Q, and is registered or qualified to do business and in
good standing in each jurisdiction in which the failure to be so qualified would have a Material
Adverse Effect, and to the Company’s knowledge, no proceeding has been instituted in any such
jurisdiction, revoking, limiting or curtailing, or seeking to revoke, limit or curtail, such power
and authority or qualification. As used in this Agreement, “Material Adverse Effect” means any
material adverse effect upon (i) the business, financial condition, results of operations, assets,
properties or operations of the Company and its Subsidiaries, considered as one enterprise, or (ii)
the Company’s ability to perform its obligations under this Agreement. No Subsidiary of the
Company is a “significant subsidiary” of the Company as such term is defined in Rule 1-02(w) of
Regulation S-X.

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     (b) Due Authorization and Valid Issuance. The Company has all requisite power and authority
to execute, deliver and perform its obligations under the Transaction Documents, and the
Transaction Documents and the transactions contemplated thereby have been duly authorized by the
Company and its Board of Directors and no further consent or authorization by the Company, or its
shareholders is required. Each of the Transaction Documents has been validly executed and
delivered by the Company and constitutes a legal, valid and binding agreement of the Company
enforceable against the Company in accordance with its terms, except as rights to indemnity and
contribution may be limited by state or federal securities laws or the public policy underlying
such laws, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights
generally and except as enforceability may be subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law). The Note being
purchased by the Purchaser hereunder will, upon issuance pursuant to the terms hereof, be duly
authorized, validly issued, fully paid and nonassessable, and shall be free from all liens, claims
and encumbrances, except encumbrances or restrictions arising under U.S. federal or state
securities laws, with respect to the issuance thereof, and the Purchaser shall be entitled to all
the rights set forth therein.

     (c) Non-Contravention. The execution, delivery and performance of the Transaction Documents,
including without limitation the issuance and sale of the Note to be sold by the Company under the
Transaction Documents, the fulfillment of the terms of the Transaction Documents and the
consummation of the transactions contemplated thereby, will not constitute a violation of, or
default (with the passage of time or otherwise) under (i) any bond, debenture, note or other
evidence of indebtedness, lease, contract, indenture, mortgage, deed of trust, loan agreement,
joint venture or other agreement or instrument to which the Company or any Subsidiary is a party or
by which it or any of its Subsidiaries or their respective properties are bound when such
violation, conflict or default, individually, or in the aggregate, would have a Material Adverse
Effect, (ii) the articles of organization, by-laws or other organizational documents of the Company
or any Subsidiary, or (iii) any law, administrative regulation, ordinance or order of any court or
governmental agency, arbitration panel or authority applicable to the Company or any Subsidiary or
their respective properties when such violation, conflict or default would have a Material Adverse
Effect. In addition, the execution, delivery and performance of the Transaction Documents,
including without limitation the issuance and sale of the Note to be sold by the Company under the
Transaction Documents, the fulfillment of the terms of the Transaction Documents and the
consummation of the transactions contemplated thereby, will not result in the creation or
imposition of any lien, encumbrance, claim, security interest or restriction whatsoever upon any of
the properties or assets of the Company or any Subsidiary (other than an acceleration of
indebtedness pursuant to any obligation, agreement or condition contained in any bond, debenture,
note or any other evidence of indebtedness or any indenture, mortgage, deed of trust or any other
agreement or instrument to which the Company or any Subsidiary is a party or by which any of them
is bound or to which any of the property or assets of the Company or any Subsidiary is subject
where such lien or other restriction would not have a Material Adverse Effect). Except for such
filings and clearances, if any, as may be required by the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended (the “HSR Act”), no consent, approval, authorization or other order
of, or registration, qualification or filing with, any regulatory body, administrative agency, or
other

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governmental body in the United States or any other person is required for the execution,
delivery and performance of the Transaction Documents, including without limitation the valid
issuance and sale of the Securities to be sold pursuant to the Transaction Documents, other than
such as have been made or obtained, and except for any post-closing securities filings or
notifications required to be made under federal or state securities laws. Assuming the accuracy of
the representations made by Purchaser in Section 2, the issuance by the Company of the Note is
exempt from registration under the Securities Act and the issuance of the Conversion Shares upon
conversion the Notes (if applicable), will be exempt from registration under the Securities Act
under applicable rules and regulations as currently in effect.

     (d) Capitalization. The Company’s authorized capital stock as of December 30, 2006 consisted
of (i) 60,000,000 shares of Common Stock, $0.01 par value per share, of which 18,389,862 shares are
issued and outstanding at December 30, 2006, and (ii) 1,000,000 shares of Preferred Stock, $0.01
par value per share, of which no shares are issued and outstanding at December 30, 2006. The
Company has not issued any capital stock since that date other than pursuant to (i) the exercise of
stock options granted to the Company’s employees and service providers pursuant to employee benefit
plans and contract, (ii) upon exercise of outstanding warrants or options disclosed in the SEC
Filings, or (iii) upon conversion of the Company’s outstanding 5.5% Redeemable Convertible Senior
Notes Due 2026 (the “Convertible Notes”). The Company has no stock option or stock purchase plans
or other equity incentive plans of any kind other than those described in the SEC Filings. The
Conversion Shares that are contingently issuable by the Company pursuant to the Transaction
Documents have been duly authorized, and when issued in accordance with the terms of the
Transaction Documents, will be duly and validly issued, fully paid and nonassessable and will be
free from all taxes, liens and charges with respect to the issuance thereof, with the holder
thereof entitled to all rights accorded to holders of Common Stock of the Company, generally. The
outstanding shares of capital stock of the Company have been duly and validly issued and are fully
paid and nonassessable, have been issued in compliance with all federal and state securities laws,
and were not issued in violation of any preemptive rights or similar rights to subscribe for or
purchase securities. Except as set forth herein or in the SEC Filings (including specifically the
references to the agreements entered into in connection with the Convertible Notes), there are no
(i) outstanding rights (including, without limitation, preemptive rights with respect to issuances
by the Company of any securities, including without limitation the Securities, of the Company),
warrants or options to acquire, or instruments convertible into or exchangeable for, any unissued
shares of capital stock or other equity interest in the Company or any Subsidiary, (ii) contracts,
commitments, agreements, understandings or arrangements of any kind to which the Company is a party
or of which the Company has knowledge and relating to the issuance or sale of any capital stock of
the Company or any Subsidiary, or of any such convertible or exchangeable securities or any such
rights, warrants or options, (iii) outstanding securities or instruments of the Company or any
Subsidiary that contain any redemption or similar provisions, and there are no contracts,
commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to redeem a security of the Company or any Subsidiary, (iv) securities or other instruments
containing anti-dilution or similar provisions that will be triggered by the issuance of any of the
Securities under this Agreement, or (v) stock appreciation rights or “phantom stock” plans or
agreements or any similar plan or arrangement. No further approval or authorization of any

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stockholder, the Board of Directors of the Company or others is required for the issuance and
sale of the Securities. The Company owns the entire equity interest in each of its Subsidiaries,
free and clear of any pledge, lien, security interest, encumbrance, claim or equitable interest,
other than as described in the SEC Filings. The Company has no outstanding indebtedness for
borrowed money and no agreement regarding borrowings, other than pursuant to the Convertible Notes
and that certain Loan and Security Agreement, dated as of July 21, 2005, as amended (the “SVB
Indebtedness”). Except as disclosed in the SEC Filings, there are no shareholder rights plans,
stockholders agreements, voting agreements or other similar agreements with respect to the Common
Stock to which the Company is a party or, to the knowledge of the Company, between or among any of
the Company’s stockholders.

     (e) Legal Proceedings. There is no material action, suit, proceeding, inquiry or
investigation before or by any court, public board, government agency, self-regulatory organization
or body pending or, to the knowledge of the Company, threatened to which the Company or any
Subsidiary is or may be a party or of which the business, property, Common Stock, officers or
directors (in their capacities as such) of the Company or any Subsidiary is subject that is not
disclosed in the SEC Filings, except where the same would not result, either individually or in the
aggregate, in a Material Adverse Effect.

     (f) No Violations. Except as disclosed in the SEC Filings neither the Company nor any
Subsidiary (i) is in violation of its charter, bylaws, or other organizational document, (ii) is in
violation of any law, administrative regulation, ordinance or order of any court or governmental
agency, arbitration panel or authority applicable to the Company or any Subsidiary, which
violation, individually or in the aggregate, would be reasonably likely to have a Material Adverse
Effect, or (iii) is in default (and there exists no condition which, with the passage of time or
otherwise, would constitute a default) in any respect in the performance of any bond, debenture,
note or any other evidence of indebtedness in any indenture, mortgage, deed of trust or any other
agreement or instrument to which the Company or any Subsidiary is a party or by which the Company
or any Subsidiary is bound or by which the properties of the Company or any Subsidiary are bound,
which would be reasonably likely to have a Material Adverse Effect.

     (g) Governmental Permits, Etc. Each of the Company and its Subsidiaries has all necessary
franchises, licenses, certificates and other authorizations from any foreign, federal, state or
local government or governmental agency, department, or body that are currently necessary for the
operation of the business of the Company and its Subsidiaries as currently conducted and as
described in the SEC Filings except where the failure to currently possess any such franchise,
license, certificate or other authorization would not have a Material Adverse Effect.

     (h) Intellectual Property. Except as specifically disclosed in the SEC Filings, (i) each of
the Company and its Subsidiaries owns or possesses sufficient rights to use all patents, patent
rights, trademarks, copyrights, licenses, inventions, mask works, trade secrets, trade names,
know-how, moral rights, confidential and proprietary information, compositions of matter, formulas,
designs and proprietary rights (collectively, “Intellectual Property”) described or
referred to in the SEC Filings as owned or possessed by it or that are necessary for the conduct of
its business as now conducted or as

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described in the SEC Filings, except where the failure to currently own or possess would not
have a Material Adverse Effect, and (ii) to the Company’s knowledge, neither the Company nor any of
its Subsidiaries is infringing, or has received any notice of or has any knowledge of any asserted
infringement by the Company or any of its Subsidiaries of, any rights of a third party with respect
to any Intellectual Property that, individually or in the aggregate, would have a Material Adverse
Effect. To the Company’s knowledge, there is no claim, action or proceeding being overtly
threatened against, but which has not been made or brought against, the Company or any of its
Subsidiaries regarding its Intellectual Property or infringement of other intellectual property
rights which could reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect. To the Company’s knowledge, no third party has any ownership right,
title, interest, claim in or lien on any of the Intellectual Property and the Company has taken,
and in the future the Company will use its reasonable effort to take, all steps reasonably
necessary to preserve its legal rights in, and the secrecy of, all the Intellectual Property. To
the Company’s knowledge, there is no material unauthorized use, infringement or misappropriation of
any Intellectual Property of the Company or any of the Subsidiaries by any third party.

     (i) Environmental Matters.

          (1) Except as would not reasonably be likely to result in a material liability to the Company,
no underground storage tanks and no amount of any substance that has been designated by any
governmental agency or by applicable federal, state or local law to be radioactive, toxic,
hazardous or otherwise a danger to health or the environment, including without limitation, PCBs,
asbestos, petroleum, urea-formaldehyde and all substances listed as hazardous substances pursuant
to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended to
date, or defined as a hazardous waste pursuant to the United States Resource Conservation and
Recovery Act of 1976, as amended to date, and the regulations promulgated pursuant to said laws,
but excluding routine quantities of office and janitorial supplies (a “Hazardous
Material”), are present as a result of the actions of the Company, or, to the Company’s
knowledge, as a result of the actions of a third party, in, on or under any property, including the
land and the improvements, ground water and surface water thereof, that the Company or any of its
subsidiaries currently owns, operates, occupies or leases, or to the Company’s knowledge, were
present on any other real property at the time it ceased to be owned, operated, occupied or leased
by the Company as a result of the actions of the Company, or to the Company’s knowledge as a result
of the actions of a third party.

          (2) Except as would not reasonably be likely to result in a material liability to the Company
(in any individual case or in the aggregate), neither the Company nor any Subsidiary has
transported, stored, used, manufactured, disposed of or arranged for the disposal of, released or
exposed its employees or others to Hazardous Materials in violation of any federal, state or local
law, rule, regulation, treaty or statute in effect before the Closing Date related to protection of
human health, safety, and the environment, including natural resources (collectively,
“Environmental Laws”).

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          (3) Except as would not reasonably be likely to result in a material liability to the Company,
the Company and the Subsidiaries currently hold and are in compliance with all approvals, permits,
licenses, clearances and consents required under Environmental Laws for the conduct of the
Company’s and the Subsidiaries’ businesses as currently being conducted.

          (4) No action, proceeding, revocation proceeding, amendment procedure, writ, injunction or
claim is pending, or to the Company’s knowledge, threatened, alleging that the Company or any of
the Subsidiaries are in violation of or liable under any Environmental Law.

     (j) No General Solicitation; No Integration. Neither the Company nor any other person or
entity authorized by the Company to act on its behalf has engaged in a general solicitation or
general advertising (within the meaning of Regulation D of the Securities Act) of investors with
respect to offers or sales of any of the Securities. The Company has not, directly or indirectly,
sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security
(as defined in the Securities Act) which, to its knowledge, is or will be integrated with the
Conversion Shares and/or the Note sold pursuant to this Agreement.

     (k) Interested Party Transactions. Except as set forth in the SEC Filings, no officer or
director of the Company or the Subsidiaries or any “affiliate” or “associate” (as those terms are
defined in Rule 405 promulgated under the 1933 Act) of any such person has had, either directly or
indirectly, a material interest in: (i) any person or entity which purchases from or sells,
licenses or furnishes to the Company any goods, property, technology, intellectual or other
property rights or services; or (ii) any contract or agreement to which the Company is a party or
by which it may be bound or affected.

     (l) No Material Adverse Change. Since September 30, 2006, the Company has not experienced or
suffered events or conditions which have, in the aggregate, caused a Material Adverse Effect.

     (m) Compliance. The Company’s Common Stock is registered pursuant to Section 12(g) of the
Exchange Act, and the Company has taken no action designed to, or likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act, nor has the Company
received any notification that the Securities and Exchange Commission (the “SEC”) or the
NASD is contemplating terminating such registration.

     (n) No Manipulation of Stock. The Company has not taken and will not, in violation of
applicable law, take any action designed to or that might reasonably be expected to cause or result
in stabilization or manipulation of the price of the Common Stock to facilitate the transactions
contemplated hereby or the sale or resale of the Conversion Shares.

     (o) Company not an “Investment Company”. The Company has been advised of the rules and
requirements under the Investment Company Act of 1940, as amended (the “Investment Company
Act”). The Company is not, and immediately after receipt of payment for the Shares will not
be, an “investment company” or an entity “controlled” by an “investment company” within the

-10-

 

meaning of the Investment Company Act and shall conduct its business in a manner so that it
will not become subject to the Investment Company Act.

     (p) Brokers or Finders. The Company has not incurred, and shall not incur, directly or
indirectly, any liability for any brokerage or finders’ fees or agents’ commissions or any similar
charges in connection with this Agreement or any transaction contemplated hereby.

     (r) Canadian Representations. The Company further represents and warrants to the Purchaser
that, as at the date of issuance of the Note, the Company is not a “reporting issuer” (or the
equivalent) in any Canadian provincial or territorial jurisdiction.

     (s) Employee Benefits Plans. The Company does not currently have a guaranteed pension plan
under §§302, 4041, 4042, 4043, 4063, 4065, 4066 and 4068 of ERISA, or a multiemployer plan, under
§§4041A, 4202, 4219, 4242, or 4245 of ERISA.

SECTION 4. Covenants

     (a) Reasonable Efforts. The parties shall use all reasonable efforts to timely satisfy each
of the conditions described in Sections 5 and 6 of this Agreement.

     (b) Consents. The Company will use all reasonable efforts to obtain all consents, approvals,
authorizations or other orders of, or registration, qualification or filing with, any regulatory
body, administrative agency or other governmental body in the United States or any other person
that is required for the execution, delivery and performance of the Transaction Documents,
including without limitation the valid issuance and sale of the Securities to be sold pursuant to
the Transaction Documents. The Purchase will cooperate in good faith in assisting the Purchaser to
fulfill this covenant.

     (c) Blue Sky Laws. The Company shall take such action at its own cost and expense, as the
Company shall reasonably determine is necessary to qualify the Securities for sale to the Purchaser
pursuant to this Agreement under applicable federal securities and securities or “blue sky” laws of
the states of the United States or obtain exemption therefrom, and shall provide evidence of any
such action so taken to each Purchaser.

     (d) Reservation of Shares. The Company and the Purchaser shall take all commercially
reasonable action necessary to at all times have authorized and reserved for the purpose of
issuance, no less than 100% of the number of shares of Common Stock needed to provide for the
issuance of the Conversion Shares.

     (e) Redemptions and Dividends. For so long as Notes are outstanding, without the prior
written approval of the Purchaser, the Company shall not repurchase, redeem, or declare or pay
any cash dividend or distribution on, any shares of capital stock of the Company.

     (f) Regulatory Filings; Reasonable Efforts.

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          (A) Regulatory Filings. Each of the Company and Purchaser shall coordinate and
cooperate with one another and shall each use all reasonable efforts such that as promptly as
practicable after the date hereof, each of the Company and Purchaser shall make all filings
reasonably determined by the parties to be required by any governmental entity in connection with
the issuance of the Notes and the Conversion Shares (if applicable) and the transactions
contemplated hereby, including, without limitation, (i) Notification and Report Forms with the
United States Federal Trade Commission (the “FTC”) and the Antitrust Division of the United
States Department of Justice (“DOJ”) if and as required by the HSR Act, (ii) other
comparable filings pursuant to the merger notification or control laws of any applicable
jurisdiction, as agreed by the parties hereto and (iii) any filings required under the Securities
Act, the Securities Exchange Act of 1934, as amended, any applicable state or securities or “blue
sky” laws and the securities laws of any foreign country, or any other legal requirement relating
to the issuance of the Note and the Conversion Shares. Each of the Company and Purchaser will
cause all documents that it is responsible for filing with any governmental entity under this
Section 4(f) to comply in all material respects with all applicable legal requirements.

          (B) Exchange of Information. The Company and Purchaser each shall promptly supply the
other with any information that may be required in order to effectuate any filings or application
pursuant to Section 4(f)(i). Except where prohibited by applicable legal requirements, each of the
Company and Purchaser shall consult with the other prior to taking a position with respect to any
such filing, shall consider in good faith the views of one another in connection with any analyses,
appearances, presentations, memoranda, briefs, papers, arguments, opinions and proposals before
making or submitting any of the foregoing to any governmental entity by or on behalf of any party
hereto in connection with any investigations or proceedings in connection with this Agreement or
the transactions contemplated hereby (including under any antitrust or fair trade legal
requirement), coordinate with the other in preparing and exchanging such information and promptly
provide the other with copies of all filings, presentations or submissions (and a summary of any
oral presentations) made by such party with any governmental entity in connection with this
Agreement or the transactions contemplated hereby, provided that with respect to any such filing,
presentation or submission, each of the Company and Purchaser need not supply the other with copies
(or in case of oral presentations, a summary) to the extent that any law, treaty, rule or
regulation of any governmental entity applicable to such party requires such party or its
subsidiaries to restrict or prohibit access to any such properties or information.

          (C) Notification. Each of the Company and Purchaser will notify the other promptly
upon the receipt of (i) any comments from any officials of any governmental entity in connection
with any filings made pursuant hereto and (ii) any request by any officials of any governmental
entity for amendments or supplements to any filings made pursuant to, or information provided to
comply in all material respects with, any legal requirements. Whenever any event occurs that is
required to be set forth in an amendment or supplement to any filing made pursuant to Section
4(f)(i), the Company or Purchaser, as the case may be, will promptly inform the other of such
occurrence and cooperate in filing with the applicable governmental entity such amendment or
supplement.

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          (D) Limitation on Divestiture. Notwithstanding anything in this Agreement to the
contrary, nothing contained in this Agreement shall be deemed to require the Company or Purchaser
or any subsidiary or affiliate thereof to agree to any divestiture by itself or any of its
affiliates of shares of capital stock or of any business, assets or property, or the imposition of
any material limitation on the ability of any of them to conduct their businesses or to own or
exercise control of such assets, properties and stock.

     SECTION 5.
Conditions to the Company’s Obligation to Close. The obligation of the Company to
issue and sell the Notes to the Purchaser at each Closing is subject to the satisfaction, at or
before each Closing Date, of each of the following conditions, provided that these conditions are
for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion
by providing Purchaser with prior written notice thereof:

     (a) Transaction Documents. Purchaser shall have executed each of the Transaction Documents to
which it is a party and delivered the same to the Company.

     (b) Payment of Purchase Price. Purchaser shall have delivered to the Company the purchase
price for the Note being purchased by such Purchaser at the Closing by the Closing Date by wire
transfer of immediately available funds pursuant to the wire instructions attached hereto as
Schedule A (or such other wire instructions as the Company may provide).

     (c) Representations and Warranties; Covenants. The representations and warranties of the
Purchaser shall be true, correct and complete in all respects as of the date when made and as of
the Closing Date as though made at that time (except for representations and warranties that speak
as of a specific date (which shall be true, correct and complete as of such date)), and the
Purchaser shall have performed, satisfied and complied with in all material respects the covenants,
agreements and conditions required by the Transaction Documents to be performed, satisfied or
complied with by such Purchaser at or prior to the Closing Date.

     SECTION
6. Conditions to Purchaser’s Obligation to Purchase. The obligation of Purchaser
hereunder to purchase the Note from the Company at the Closing is subject to the satisfaction, at
or before the Closing Date, of each of the following conditions, provided that these conditions are
for Purchaser’s sole benefit and may be waived by Purchaser at any time in its sole discretion by
providing the Company with prior written notice thereof:

     (a) Transaction Documents. The Company shall have executed each of the Transaction Documents
and delivered the same to the Purchaser.

     (b) Representations and Warranties; Covenants. The representations and warranties, as
qualified by the SEC Filings and any Disclosure Letters, of the Company shall be true, correct and
complete in all respects as of the date when made and as of the Closing Date as though made at that
time (except for representations and warranties that speak as of a specific date (which shall be
true, correct and complete as of such date)) and the Company shall have performed, satisfied and
complied with in all respects the covenants, agreements and conditions required by the Transaction
Documents to be performed, satisfied or complied with by the Company at or prior to the Closing

-13-

 

Date. The Purchaser shall have received a certificate, executed by the principal financial
officer of the Company, dated as of the Closing Date, to the foregoing effect.

     (c) Reservation of Common Stock. As of the Closing Date, the Company shall have reserved out
of its authorized and unissued Common Stock, solely for the purpose of effecting the conversion of
the interest on the Notes, 100,000 shares of its Common Stock and shall have sufficient authorized
and unissued shares of Common Stock to reserve such amount.

     (d) Good Standing Certificates. The Company shall have delivered to Purchaser a certificate
evidencing the incorporation and good standing of the Company in Delaware issued by the Secretary
of State of Delaware as of a date within ten days of the Closing Date and a certified copy of the
Company’s articles of organization, certified by the Secretary of State of Delaware, as of a date
within ten days of the Closing Date.

     (e) Secretary’s Certificate. The Company shall have delivered to such Purchaser a certificate
of the Secretary of the Company, in the form attached hereto as Exhibit B and dated as of
the Closing Date, certifying as to adoption without subsequent modification or amendment of the
form of resolutions of the Board of Directors of the Company consistent with Section 3(b) of this
Agreement and certifying as to the Company’s certification of incorporation and by-laws, each as in
effect at the Closing.

     (f) Filings; Authorizations. The Company shall have made all filings under all applicable
federal and state securities laws necessary to consummate the issuance of the Securities pursuant
to this Agreement in compliance with such laws, except for any filings that may be made after the
Closing.

     (g) No Injunctions. No temporary restraining order, preliminary or permanent injunction or
other order or decree, and no other legal restraint or prohibition shall exist which prevents or
arguably prevents the consummation of the transactions contemplated by the Transaction Documents,
nor shall any proceeding have been commenced or threatened with respect to the foregoing.

     (h) No Material Adverse Effect. Between the time of execution of this Agreement and the
Closing Date, no Material Adverse Effect shall occur or become known (whether or not arising in the
ordinary course of business).

     (i) Approval by the Company’s Board of Directors. The Transaction Documents shall have been
approved by the Board of Directors of the Company, in the form hereof and, if attached as an
Exhibit hereto, in the form so attached, at a general or special meeting in accordance with Company
by-laws, and other requirements.

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     SECTION 7. Miscellaneous

     (a) Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be deemed to be a
contract made under the laws of the State of Massachusetts, and for all purposes shall be, governed
by, and considered in accordance with, the law of the State of Massachusetts. Each party hereby
irrevocably submits to the non-exclusive jurisdiction of the state and federal courts sitting in
Massachusetts for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action or proceeding is
brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.
Each party hereby irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by law. If any
provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the remainder of this
Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement
in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES
NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

     (b) Counterparts. This Agreement may be executed in identical counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same agreement.
This Agreement, once executed by a party, may be delivered to the other parties hereto by facsimile
transmission of a copy of this Agreement bearing the signature of the party so delivering this
Agreement.

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

     (d) Entire Agreement. This Agreement, the Notes and the documents referenced herein and
therein constitute the entire agreement among the parties hereto with respect to the subject matter
hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein and therein. This Agreement and the Notes supersede all
prior agreements and understandings among the parties hereto with respect to the subject matter
hereof and thereof.

     (e) Amendments. This Agreement may not be modified or amended except pursuant to an
instrument in writing signed by the Company and Purchaser.

     (f) Waivers. No provision of this Agreement may be amended or waived other than by an
instrument in writing signed by the Company and the Purchaser. No consideration shall be

-15-

 

offered or paid to any person to amend or consent to a waiver or modification of any provision
of this Agreement unless the same consideration also is offered to all of the parties to this
Agreement.

     (g) Expenses. The Company and Purchaser shall bear their own legal and other expenses with
respect to this Agreement and the transactions contemplated hereby.

     (h) Notices. Any notices, consents, waivers or other communications required or permitted to
be given under the terms of this Agreement must be in writing and will be deemed to have been
delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile,
provided that such notice is also delivered via regular mail; or (iii) 1 Business Day after deposit
with a nationally recognized overnight delivery service, in each case properly addressed to the
party to receive the same. The addresses and facsimile numbers for such communications shall be:

     If to the Company:

Sipex Corporation

233 South Hillview Drive

Milpitas, CA 95035

Telephone: (408) 934-7547

Facsimile: (408) 935-7678

Attention: Ray Wallin, CFO

     with a copy to:

Wilson Sonsini Goodrich & Rosati

650 Page Mill Road

Palo Alto, CA 94304

Telephone: (650) 493-9300

Facsimile: (650) 493-6811

Attention: Robert G. Day

     If to Purchaser, to its address and facsimile number set forth on the signature page hereto
executed by it, with copies to such Purchaser’s representatives as set forth thereon, or at such
other address and/or facsimile number and/or to the attention of such other person as the recipient
party has specified by written notice given to each other party 5 days prior to the effectiveness
of such change. Written confirmation of receipt (A) given by the recipient of such notice,
consent, waiver or other communication, (B) mechanically or electronically generated by the
sender’s facsimile machine containing the time, date, recipient facsimile number and an image of
the first page of such transmission, or (C) provided by a courier or overnight courier service
shall be rebuttal evidence of personal service, receipt by facsimile, receipt from a nationally
recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above,
respectively.

     (i) Conflicts.
To the extent that any provision of this Agreement or the Notes is
determined, by a court of competent jurisdiction,
to conflict with the provisions of that certain Securities Purchase Agreement dated as of

-16-

 

May 16, 2006 by and among the Company and the individuals listed on the Schedule of Buyers
attached thereto, the parties agree that such conflicting provision of this Agreement shall be void and of no
effect such that this Agreement will not conflict with the Securities
Purchase Agreement, but only for so long as such conflict, if any,
shall subsist.

     (j) Further Assurances. Each party shall do and perform, or cause to be done and performed,
all such further acts and things, and shall execute and deliver all such other agreements,
certificates, instruments and documents, as the other party may reasonably request in order to
carry out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby, including a Subordination Agreement between the Purchaser and
Silicon Valley Bank.

     (k) Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties
hereto and their respective permitted successors and assigns, and is not for the benefit of, nor
may any provision hereof be enforced by, any other person.

     (l) Severability. If any provision of this Agreement shall be invalid or unenforceable in
any jurisdiction, such invalidity or unenforceability shall not affect the validity or
enforceability of the remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction.

     (m) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties and their respective successors and permitted assigns. The Company shall not assign
this Agreement or any rights or obligations hereunder without the prior written consent of the
Purchaser. Purchaser may assign its rights under this Agreement to any person or persons to whom
the Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing
to be bound, with respect to the transferred Securities, by the provisions hereof that apply to
the Purchaser.

     (n) Survival. The representations and warranties of the Company and the Purchaser contained
in Sections 2 and 3 of this Agreement and the agreements and covenants set forth in Sections 3, 4
and 5 of this Agreement shall survive until such time as no Securities remain outstanding.
Purchaser shall be responsible only for its own representations, warranties, agreements and
covenants hereunder.

     (o) Publicity. On or promptly following the Closing Date, the Company shall file a Form 8-K
describing the terms of the transactions contemplated by the Transaction Documents in the form
required by the Securities Exchange Act of 1934, as amended, and attaching the material
Transaction Documents (including all attachments, the “8-K Filing”). Subject to the
foregoing, neither the Company nor Purchaser shall issue any press releases or any other public
statements with respect to the transactions contemplated hereby; provided, however, that the
Company shall be entitled, without the prior approval of Purchaser (although the Purchaser shall
be consulted by the Company in connection with any such press release prior to its release and
shall be given the opportunity to review its contents), to make any press release or other public
disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and
contemporaneously therewith and (ii) as is required by applicable law and regulations. Each of
the

-17-

 

Company and the Purchaser shall have the right to approve before issuance any press releases
or any other public statements by the other party with respect to the transactions contemplated by
the Transaction Documents.

     (p) Remedies. Purchaser and each holder of the Securities shall have all rights and remedies
set forth in the Transaction Documents and all rights and remedies which such holders have been
granted at any time under any other agreement or contract and all of the rights which such holders
have under any law. Any person having any rights under any provision of this Agreement shall be
entitled to enforce such rights to recover damages by reason of any breach of any provision of
this Agreement and to exercise all other rights granted by law. Furthermore, the Company
recognizes that in the event that it fails to perform, observe, or discharge any or all of its
obligations under this Agreement, any remedy at law may prove to be inadequate relief to the
Purchaser. The Company therefore agrees that the Purchaser shall be entitled to seek temporary
and permanent injunctive relief in any such case without the necessity of proving actual damages
and without posting a bond or other security.

[THE BALANCE OF THIS PAGE HAS
BEEN INTENTIONALLY LEFT BLANK]

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

	 	 	 	 	 
	 	“COMPANY”

SIPEX CORPORATION

 	 
	 	By:  	/s/ Ralph Schmitt
 	 
	 	Name:  	Ralph Schmitt 	 
	 	Title:  	Chief Executive Officer	 
	 

[Signature of the Purchaser on Following Page]

[SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

 

	 	 	 	 	 
	 	“PURCHASER”

RODFRE HOLDINGS LLC

 	 
	 	By:  	/s/ Joseph Prudente
 	 
	 	 	(signature of authorized representative)      

	 
	 	Name:       Joseph Prudente

Its:                     Director

Address: 41 Main Street, Bolton, MA, 01740

Telephone: (978) 779-3000

Fax:
            (978) 779-3050

Tax I.D. or SSN: 47-0935666 	 
	 

 [SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

 

 

EXHIBIT A

FORM OF NOTE

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD,
TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS OR AN EXEMPTION THEREFROM.

THIS SECURITY IS SUBORDINATED TO THE EXTENT SET FORTH IN THE
SUBORDINATION AGREEMENT DATED AS OF THE DATE HEREOF BY THE COMPANY,
LENDER AND SILICON VALLEY BANK AS PER SECTION 5 HEREOF.

SIPEX CORPORATION

9% UNSECURED JUNIOR NOTE WITH CONVERTIBLE INTEREST DUE

JUNE 30, 2008

No. 2006-1
[TBD – up to an aggregate amount of U.S. $10,000,000]

     SECTION 1. Security.

     This Security is a duly authorized 9% Unsecured Junior Note with contingently convertible
interest due June 30, 2008 of Sipex Corporation, a Delaware corporation (the “Company”).
Capitalized terms used and not otherwise defined herein, shall have the respective meanings given
to those terms in Section 10 hereof.

     SECTION 2. Principal Amount and Interest.

          (a) The Company for value received, hereby promises to pay to the order of
Rodfre Holdings LLC (“Lender”), or its registered assigns, the principal sum of [TBD – (up to an
aggregate amount of U.S. $10,000,000)] (the “Principal Amount”) on June 30, 2008 (the “Final
Maturity Date”) or on such earlier date as this Security may become due and payable, as set
forth herein. The Company shall have the option to pay any portion of the principal at any time
prior to the Final Maturity Date. Subject to other provisions of this Security, which may result
in increases to the applicable interest rate, the Company also undertakes to pay to the Holder,
interest, at the rate of 9% per annum (“Interest”) compounded quarterly, before default and/or
maturity, and payable on the Final Maturity Date and the lower of (i) 15% per annum or (ii) the
maximum rate allowed by applicable law, compounded quarterly, after default and/or maturity.
Interest shall accrue as and from the date that the purchase price of this Security is paid by the
Lender to the Company (or to an agreed upon escrow agent, as the case may be).

     On each of June 30, 2007, September 30, 2007, and December 31, 2007, and March 31, 2008, the
accrued Interest for the quarterly period ending on that date shall be compounded and thereafter
Interest shall accrue on the sum of the Principal Amount and

 

 

the amount of Interest accrued during such quarterly period and each previous quarterly period
(if any) described in this paragraph. The sum total of the Principal Amount and the Conversion
Account Balance shall constitute the “Adjusted Principal Amount”.

     The amount due and payable on the Final Maturity Date or on the date of any redemption
pursuant to Section 4 shall be the Adjusted Principal Amount, as applicable, adjusted to reflect
any portion of the Conversion Account Balance (as defined below), which the Holder has converted or
elected to convert into Common Stock.

          (b) Interest shall be computed on the basis of a 365 day year, and actual days elapsed.
Interest shall be payable in U.S. Dollars to the Holder in whose name this Security was registered
at the close of business on the Final Maturity Date.

          (c) Payment of the Principal Amount of and Interest accrued on this Security shall be made
upon the surrender of this Security to the Company, at the office designated by the Company for
delivery of notices pursuant to Section 11(a) hereof (the “Designated Office”), in 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.

          (d) Payment of the Principal Amount, and Interest, shall be made by wire transfer of
immediately available funds to the Holder entitled thereto in accordance with the wire transfer
instructions provided by the Holder to the Company at least three Business Days prior to the Final
Maturity Date.

     SECTION 3. Conversion.

     For purposes of calculating the amount of Interest available to be converted in accordance
with this Section 3, Interest accruing under Section 2(a) (including compounded interest) shall be
credited on a daily basis to a notional account (the “Conversion Account”). Subject to the
Registration Statement Effectiveness Restriction, on June 30, 2007, September 30, 2007, December
31, 2007, March 31, 2008, and again on June 30, 2008 (each a “Conversion Date”), the Holder
shall have the right to convert, on each such occasion, any and all Interest then credited to the
Conversion Account (the “Conversion Account Balance”) into Common Stock of the Company.
The following terms and conditions set forth in this Section 3 shall also be applicable to the
conversion of the Conversion Account Balance.

          (a) (1) Subject to the Registration Statement Effectiveness Restriction and compliance with
applicable laws, including but not limited to the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended, if and to the extent that the same may be applicable, the Holder of this Security
may convert the Conversion Account Balance (or any portion thereof) into Common Stock at the
Conversion Price then in effect. The number of shares of Common Stock into which all or any
portion of the Conversion Account Balance may be converted upon any such conversion shall be a
number of shares equal to the quotient (rounded down to the nearest whole share) obtained by
dividing (A) the then Conversion Account Balance or portion thereof being converted by (B) the
Conversion Price then in effect; provided, however, that in no event

3

 

may the Holder convert a portion of the Conversion Account Balance that would result in the
issuance of shares of Common Stock in excess of 19.9% of the total number of shares of Common Stock
outstanding immediately prior to conversion.

     Subject to the other provisions of this Agreement pertaining to adjustment of the Conversion
Price (as defined below), the rate at which the Conversion Account Balance may be converted into
Common Stock (the “Conversion Price”) shall be equal to the volume weighted average Closing
Price of the Common Stock, for the twenty Trading Days immediately preceding the Conversion Date;
provided, however, that in no event shall the Conversion Price ever be less than the applicable
“Conversion Price” of those certain 5.5% Convertible Senior Notes Due 2026 issued by the Company on
May 18, 2006. To convert Conversion Account Balance or any portion thereof, the Holder hereof
shall, not less than five (5) nor more than thirty (30) days prior to the applicable Conversion
Date: (x) send by facsimile (or otherwise deliver) a copy of the fully executed conversion notice
in the form attached as Exhibit A hereto (the “Conversion Notice”) to the Company,
and (y) pay any transfer taxes or other applicable taxes or duties, if any, required in connection
with the issuance of shares of Common Stock in the name of someone other than the Holder. Upon
receipt by the Company of a facsimile copy of a Conversion Notice from the Holder, the Company
shall as soon as practicable, but in any event on or before the second Business Day following the
date of receipt of the Conversion Notice, send, via facsimile (or otherwise deliver), a
confirmation to the Holder and the transfer agent for the Common Stock stating that the Conversion
Notice has been received, the date upon which the Company expects to deliver the Common Stock
issuable upon such conversion and the name and telephone number of a contact person at the Company
regarding the conversion. The Company shall not be obligated to issue shares of Common Stock upon
a conversion unless the Holder complies with the foregoing requirements set forth in this
paragraph.

     On or prior to the third Business Day after any Conversion Date (the “Share Delivery
Date”), the Company shall issue and deliver to the Holder or its nominee (x) that number of
shares of Common Stock issuable upon conversion of the portion of the Conversion Account Balance
being converted and (y) if applicable, cash in lieu of any fractional shares pursuant to Section
3(a)(5). If the Company’s transfer agent is participating in DTC’s Fast Automated Securities
Transfer program, and so long as the certificate for the Common Stock to be issued upon conversion
of the Conversion Account Balance is not required to bear a legend and the Holder is not then
required to return such certificate for the placement of a legend thereon and the Holder has
provided the Company with the information required by DTC relating to the DTC account of the Holder
or such Holder’s nominee, the Company shall cause its transfer agent to electronically transmit the
Common Stock issuable upon conversion of the Conversion Account Balance to the Holder by crediting
the account of the Holder or its nominee with DTC through its Deposit Withdrawal Agent Commission
system. If the aforementioned conditions for a DTC Transfer are not satisfied, the Company shall
deliver to the Holder physical certificates representing the Common Stock issuable upon conversion
of the Conversion Account Balance. Further, even if the aforementioned conditions to a DTC
Transfer are satisfied, the Holder may instruct the Company in writing to deliver to the

4

 

Holder physical certificates representing the Common Stock issuable upon conversion in lieu of
delivering such shares by way of DTC Transfer.

               (2) The Holder, as such, is not entitled to any rights of a holder of Common Stock until the
Holder has converted all or a portion of the Conversion Account Balance into Common Stock, and only
to the extent all or a portion of the Conversion Account Balance is deemed to have been converted
into Common Stock pursuant to this Section 3.

               (3) The Conversion Account Balance shall be deemed to have been converted immediately prior to
the close of business on the Conversion Date, and at such time the rights of the Holder of this
Security as the Holder hereof shall cease with respect to the portion of the Conversion Account
Balance converted on such Conversion Date, and the Person or Persons entitled to receive the shares
of Common Stock issuable upon conversion shall be deemed to be a stockholder of record as of the
Conversion Date.

               (4) N/A.

               (5) The Company will not issue fractional shares of Common Stock upon conversion of all or a
portion of the Conversion Account Balance. In lieu thereof, the Company will pay an amount in cash
for the current market value of the fractional shares. The current market value of a fractional
share shall be determined (calculated to the nearest 1/1000th of a share) by multiplying
the Conversion Price by such fractional share and rounding the product to the nearest whole cent.

               (6) The Company shall, if the Holder so elects, deliver the Common Stock issuable upon
conversion of all or a portion of the Conversion Account Balance to any third party designated by
the Holder, subject to compliance with Sections 3(e) and 11(b) hereof.

          (b) N/A.

          (c) In case at any time after the date hereof:

               (1) N/A.

               (2) the Company shall authorize the granting to the holders of its Common Stock generally of
rights or warrants to subscribe for or purchase any shares of capital stock of any class (or of
securities convertible into shares of capital stock of any class) or of any other rights;

               (3) there shall occur any reclassification of the Common Stock of the Company (other than a
subdivision or combination of its outstanding Common Stock, a change in par value, a change from
par value to no par value or a change from no par value to par value), or any merger,
consolidation, statutory share exchange or combination to which the Company is a party and for
which approval of any stockholders of the Company is required, or the sale, transfer or conveyance
of all or substantially all of the assets of the Company; or

5

 

               (4) there shall occur the voluntary or involuntary dissolution, liquidation or winding up of
the Company;

               (5) the Company shall cause to be provided to the Holder of this Security in accordance with
Section 11(a), at least 20 days (or 10 days in any case specified in clause (2) above) prior to the
applicable record or effective date hereinafter specified, a written notice (which notice shall not
include any material non-public information) stating:

                    (A) the date on which a record is to be taken for the purpose of such dividend, distribution,
grant of rights or warrants, or, if a record is not to be taken, the date as of which the holders
of shares of Common Stock of record to be entitled to such dividend, distribution, rights or
warrants are to be determined; or

                    (B) the date on which such reclassification, merger, consolidation, statutory share exchange,
combination, sale, transfer, conveyance, dissolution, liquidation or winding up is expected to
become effective, and the date as of which it is expected that holders of shares of Common Stock of
record shall be entitled to exchange their shares of Common Stock for securities, cash or other
property deliverable upon such reclassification, merger, consolidation, statutory share exchange,
sale, transfer, dissolution, liquidation or winding up.

               At any time prior from the date of such notice to the applicable record or effective date on
which any of the foregoing events is to occur, the Holder shall have the right to convert the
Conversion Account Balance into Common Stock, and all other provisions of this Security pertaining
to conversion of the Conversion Account Balance on a Conversion Date shall apply mutatis mutandis
to such conversion.

          (d) The Company shall ensure the reservation of sufficient shares of Common Stock to allow the
conversion of the Conversion Account Balance. The Company covenants that all shares of Common
Stock that may be issued upon conversion of the Conversion Account Balance will upon issue be free
from preemptive rights and validly issued, fully paid and nonassessable.

          (e) Except as provided in the next sentence, the Company will pay any and all taxes (other
than taxes on income) and duties that may be payable in respect of the issue or delivery of Common
Stock upon conversion of the Conversion Account Balance. The Company shall not, however, be
required to pay any tax or duty that may be payable in respect of any transfer involved in the
issue and delivery of Common Stock in a name other than that of the Holder of this Security, and no
such issue or delivery shall be made unless and until the Person requesting such issue has paid to
the Company the amount of any such tax or duty, or has established to the reasonable satisfaction
of the Company that such tax or duty has been paid.

          (f) If any of following events occur:

               (1) any reclassification or change of the outstanding shares of Common Stock (other than a
change in par value, or from par value to no par value, or from no par

6

 

value to par value, or as a result of a subdivision or combination), as a result of which
holders of Common Stock shall be entitled to receive Capital Stock, securities or other property or
assets (including cash) with respect to or in exchange for such Common Stock;

               (2) any merger, consolidation, statutory share exchange or combination of the Company with
another Person as a result of which holders of Common Stock shall be entitled to receive stock,
securities or other property or assets (including cash) with respect to or in exchange for such
Common Stock; or

               (3) any sale or conveyance of the properties and assets of the Company as, or substantially
as, an entirety to any other Person as a result of which holders of Common Stock shall be entitled
to receive stock, securities or other property or assets (including cash) with respect to or in
exchange for such Common Stock.

               (4) Then the Company or the successor or purchasing entity, as applicable, shall execute with
the Holder of this Security a supplemental agreement providing that the Conversion Account Balance
shall be convertible into the kind and amount of shares of capital stock and other securities or
property or assets (including cash) that such Holder would have been entitled to receive upon such
reclassification, change, merger, consolidation, statutory share exchange, combination, sale or
conveyance had the Conversion Account Balance been converted into Common Stock immediately prior to
such reclassification, change, merger, consolidation, statutory share exchange, combination, sale
or conveyance assuming the Holder, as a holder of Common Stock, did not exercise its rights of
election, if any, as to the kind or amount of securities, cash or other property receivable upon
such reclassification, change, merger, consolidation, statutory share exchange, combination, sale
or conveyance (provided that, if the kind or amount of securities, cash or other property
receivable upon such reclassification, change, merger, consolidation, statutory share exchange,
combination, sale or conveyance is not the same for each of the shares of Common Stock in respect
of which such rights of election shall not have been exercised (“Non-Electing Share”), then
for the purposes of this Section 3(f) the kind and amount of securities, cash or other property
receivable upon such reclassification, change, merger, consolidation, statutory share exchange,
combination, sale or conveyance for each Non-Electing Share shall be deemed to be the kind and
amount so receivable per share by a plurality of the Non-Electing Shares). Such supplemental
agreement shall provide for adjustments that shall be as nearly equivalent as may be practicable to
the adjustments provided for in this Section 3. If, in the case of any such reclassification,
change, merger, consolidation, statutory share exchange, combination, sale or conveyance, the stock
or other securities and assets receivable thereupon by a holder of Common Stock includes shares of
stock or other securities and assets of a person other than the successor, purchasing or transferee
entity, as applicable, in such reclassification, change, merger, consolidation, statutory share
exchange, combination, sale or conveyance, then such supplemental agreement shall also be executed
by such other person and shall contain such additional provisions to protect the interests of the
Holder as the Board of Directors shall reasonably consider necessary by reason of the foregoing.

7

 

     The above provisions of this Section 3(f) shall apply to successive or a series of related
reclassifications, changes, mergers, consolidations, statutory share exchanges, combinations, sales
and conveyances.

          (g) The Company: (i) will use its reasonable best efforts to effect all registrations with,
and obtain all approvals by, all governmental authorities that may be necessary under any United
States federal or state law (including the Securities Act, the Exchange Act and state securities
and Blue Sky laws) for the Common Stock issuable upon conversion of the Conversion Account Balance
to be lawfully issued and delivered as provided herein, and thereafter publicly traded (if
permissible under the Securities Act) and qualified or listed as contemplated by clause (ii) (it
being understood that the Company shall not be required to register the Common Stock issuable on
conversion of the Conversion Account Balance under the Securities Act); and (ii) will use its
reasonable best efforts to list the Common Stock required to be issued and delivered upon
conversion of the Conversion Account Balance within 30 calendar days after each applicable
Conversion Date, on each national securities exchange on which outstanding Common Stock is listed
or quoted at such time of such delivery, or if the Common Stock is not then listed on any national
securities exchange, to qualify the Common Stock for quotation on the Nasdaq Stock Market or such
other inter-dealer quotation system, if any, on which the Common Stock is then quoted.

          (h) In the event that the Registration Statement that is required to be filed pursuant to
Section 2(a) of the Registration Rights Agreement, dated as of May 26, 2006 by and among the
Company and the buyers listed on the Schedule of Buyers attached thereto is not declared effective
by the Commission prior to the date upon which the Holder becomes
entitled to convert the principal amount of  this Security
into Common Stock of the Company, the applicable Interest rate shall be increased by five
percentage points (5%) (or such lesser amount if necessary to prevent a violation of law), as of
such date, until such Registration Statement has been declared effective.

     SECTION 4. Rights of the Holder upon a Change of Control.

          (a) Conversion Rights and Repayment.

               (1) In the event that a Change of Control shall occur at any time prior to the Final Maturity
Date, the Holder of this Security shall have the right (each such right, a “Change of Control
Right”), at the Holder’s sole discretion, but subject to the provisions of Sections 4(b) and
4(c) and to the Registration Statement Effectiveness Restriction: (i) to convert any portion of the
Conversion Account Balance into Common Stock at the Conversion Price then in effect, on the terms
and conditions of Section 3 and/or (ii) to elect to require that the Company (or its successor)
repay the entire outstanding Principal Amount and accrued interest, and upon such election, to be
notified by the Company (or its successor) no later than five (5) business days following such
Change of Control that the Company shall repay the Principal Amount and accrued Interest to the
Holder within thirty (30) calendar days of the effective date of Change of Control.

8

 

          (b) No sooner than 15 days nor later than 10 days prior to the expected date of consummation
of a Change of Control, but in no event prior to the public announcement of such Change of Control,
the Company shall deliver written notice thereof via facsimile and overnight courier to the Holder
a “Change of Control Notice”. The Change of Control Notice shall include a form of
Conversion Notice and a form of Notice of Election to Require Redemption, to be completed by the
Holder and delivered to the Company pursuant to this Section 4(b), and shall state the following:

               (1) that it is a Change of Control Notice pursuant to this Section 4;

               (2) the events causing the Change of Control and the expected date of such Change of Control;
and

               (3) the procedures with which such Holder must comply to exercise its right to have the
Conversion Account Balance converted and/or this Security repurchased pursuant to Section 4(a),
including the date by which the completed Conversion Notice or Notice of Election to Require
Repayment and this Security must be delivered to the Company in order to have the Conversion
Account Balance converted or this Security redeemed by the Company pursuant to Section 4(a), the
address for delivery, the Conversion Price then in effect and any adjustments thereto, the amount
of accrued and unpaid interest thereon as of the expected date of consummation of such Change of
Control, and that this Security as to which a Conversion Notice has been
given may be converted.

     No failure by the Company to give
the foregoing Change of Control Notice  shall limit the Holder’s right to exercise its rights pursuant to Section 4(a).

     (c) To exercise a Change of Control Right pursuant to Section 4(a), a Holder must deliver to
the Company, at its Designated Office on or prior to the close of business on the Business Day
prior to the date on which the Change of Control  is consummated, the
following:

          (1) a completed Conversion Notice, the form of which is contained in Exhibit A hereto,
and/or a completed Notice of Election to Require Repayment, the form of which is contained in
Exhibit B hereto; and

          (2) this Security, with, if the Company so requires, due endorsement by, or a written
instrument of transfer, in form satisfactory to the Company duly executed by, the Holder or such
Holder’s attorney duly authorized in writing.

     (d) In the event that the Holder becomes entitled to convert the Conversion Account Balance
pursuant to this Section 4, the Conversion Price shall be the average of the closing price of the
Company’s Common Stock for the twenty (20) trading days immediately preceding the announcement by
the Company of the change of control; provided, however, that in no event shall the Conversion
Price ever be less than the applicable “Conversion Price” of those certain 5.5% Convertible Senior
Notes Due 2026 issued by the Company on May 18, 2006.

9

 

     SECTION 5. Subordination

     (a) This Security and all rights of payment and indebtedness evidenced by this Security are
hereby expressly subordinated both in security and right of payment to the prior payment in full in
cash of the Company’s obligations to Silicon Valley Bank. pursuant to the terms of Loan and
Security Agreement, dated as of July 21, 2005, as amended, between the Company and Silicon Valley
Bank (the “SVB Facility”) and of the Company’s obligations pursuant to its 5.5% Convertible
Senior Notes Due 2026 issued by the Company on May 18, 2006. For the avoidance of doubt, no
payment or prepayment shall be made by the Company to the Holder with respect to the indebtedness
evidenced by this Security unless and until the Company shall have satisfied all of its obligations
to Silicon Valley Bank pursuant to the SVB Facility and to the Holders of the 5.5% Convertible
Senior Notes Due 2026 issued by the Company on May 18, 2006
pursuant to such notes. Subject to the Registration Statement
Effectiveness Restriction, the foregoing subordination shall not
adversely affect or preclude the exercise by the Holder of any and
all conversion rights granted hereunder.

     SECTION 6. Covenants of the Company.

     (a) The Company covenants and agrees that it will duly and punctually pay or cause to be paid
the Principal Amount, and the interest accrued thereon at the times and in the manner provided for
herein.

     (b) Unless otherwise permitted herein, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its existence and the rights (charter and
statutory) of the Company and each of its Subsidiaries; provided, however, that the
Company shall not be required to preserve any such right with respect to a Subsidiary if the
Company shall determine in good faith that the preservation thereof is no longer desirable in the
conduct of the business of the Company and its Subsidiaries as a whole and that the loss thereof is
not disadvantageous in any material respect to the Holder.

     (c) The Company covenants and agrees that it shall, at all times during the term hereof and
until the Final Maturity Date:

               (1) provide the Holder, within one (1) business day of the release of same to Silicon Valley
Bank, with a copy of any certificate issued by the Company in respect of its compliance with
financial covenants including, but not limited to, any underlying financial ratios and compliance
calculations;

               (2) provide the Holder, within (1) business day of the release of same to the Trustee (as
defined in the Indenture described hereafter), with any notice given, pursuant to Section 5.10 (a)
or (b) of that certain Indenture dated as of May 16, 2006 in relation to the Company’s 5.5%
Convertible Senior Notes due 2026; and

               (3) within one (1) business day of acquiring knowledge of a default under any material
contract or of circumstances that may result in material adverse changes to the Company’s financial
position, the Company shall notify the Holder, in writing, of the specific nature of such default
and/or circumstances and of the expected impact of same upon the Company.

10

 

     (d) The Company and its Affiliates, shall not, without the prior approval of the Holder, which
may be withheld at the Holder’s discretion acting reasonably and in good faith, enter into any
contracts or agreements, or subscribe any obligations, the result of which would be to increase
existing Indebtedness, or create new Indebtedness and/or charge, mortgage or otherwise encumber the
Company’s property.

     (e) The Company and its Affiliates shall not, without the prior written consent of the Lender,
enter into any contract for the borrowing of money, or sale of debt instruments, or raise money by
way of venture capital, or issuance of securities, either in a public or private placement, unless
the proceeds thereof are first allocated to the repayment of this Security, or other senior
Indebtedness of the Company; provided that in the latter case; (i)
such new borrowing shall not be upon terms and conditions that are
less favourable to the Company and its Affiliates, in any material
respect, than those of such senior Indebtedness; and (ii) such new
borrowings shall not actually increase the total amount of senior
Indebtedness of the Company.

     (f) The
Company and its Affiliates shall not, without the prior written
consent of the Holder,
enter into any contract for the borrowing of money, or sale of debt instruments, or raise money by
way of venture capital, or issuance of securities, either in a public or private placement, unless
the proceeds thereof amount to at least the aggregate amount of this Security and all other
Securities purchased pursuant to the Purchase Agreement.

     
Nothing herein is to be construed as precluding or limiting the
ability of the Company to avail itself of or borrow under the SVB
Facility.

SECTION 7. Events of Default.

     (a) “Event of Default”, wherever used herein, means any one of the following events
(whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or
be effected by operation of law or pursuant to any judgment, decree or order of any court or any
order):

          (1) the Company defaults in the payment of the Principal Amount, and/or interest accrued
thereon, (a “Defaulted Payment”), when the same becomes due and payable;

          (2) the Company fails, to perform or observe in any material respect any material term,
covenant or agreement contained in this Security or the Purchase Agreement and, in any case, the
default continues for a period of 15 days after written notice of such failure, requiring the
Company to remedy the same, shall have been given to the Company by the Holder or in the event of a
material breach of any representations or warranties of the Company in this Security or the
Purchase Agreement;

          (3) the Company or any Subsidiary of the Company (A) fails to make any payment at maturity,
including any grace period, in respect of any obligation for borrowed money evidenced by an
Instrument (other than this Security) in an outstanding principal amount in excess of $1,000,000
and such failure continues without such Indebtedness having been discharged within 15 days or (B)
defaults with respect to any Instrument, which default permits or results in the acceleration of
Indebtedness represented by such Instrument (other than this Note) in an amount in excess of
$1,000,000 without such default or acceleration having been cured, waived, rescinded or annulled
within 15 days;

11

 

          (4) the entry by a court having jurisdiction in the premises of (A) a decree or order for
relief in respect of the Company or any Subsidiary of the Company in an involuntary case or
proceeding under any applicable U.S. federal or state bankruptcy, insolvency, reorganization or
other similar law or (B) a decree or order adjudging the Company or any Subsidiary of the Company
bankrupt or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company or any Subsidiary of the
Company, under any applicable U.S. federal or state law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company or any
Subsidiary of the Company or ordering the winding up or liquidation of its affairs, and the
continuance of any such decree or order for relief or any such other decree or order unstayed and
in effect for a period of 30 consecutive days; or

          (5) the commencement by the Company or any Subsidiary of the Company of a voluntary case or
proceeding under any applicable U.S. federal or state bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or
the consent by the Company or any Subsidiary of the Company, to the entry of a decree or order for
relief in respect of the Company or any Subsidiary of the Company in an involuntary case or
proceeding under any applicable U.S. federal or state bankruptcy, insolvency, reorganization or
other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against
the Company or any Subsidiary of the Company, or the filing by the Company or any Subsidiary of the
Company of a petition or answer or consent seeking reorganization or relief under any applicable
U.S. federal or state law, or the consent by the Company or any Subsidiary of the Company to the
filing of such petition or to the appointment of or the taking of possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or
any Subsidiary of the Company, or the making by the Company or any Subsidiary of the Company of an
assignment for the benefit of creditors, or the admission by the Company or any Subsidiary of the
Company in writing of its inability to pay the Company’s or any Subsidiary of the Company’s debts
generally as they become due, or the taking of corporate action by the Company or any Subsidiary of
the Company expressly in furtherance of any such action.

          A default under clause (2) above is not an Event of Default until the Holder notifies the
Company of the default and, if applicable, the Company does not cure such default (and such default
is not waived) within the time specified in clause (2) above after actual receipt of such notice.
Any such notice must specify the default, if applicable demand that it be remedied, and state that
such notice is a “Notice of Default”.

     (b) If an Event of Default (other than an Event of Default specified in Sections 7(a)(4) or
7(a)(5) hereof with respect to the Company) occurs and is continuing, the Holder, by written notice
to the Company, may declare due and payable, in whole or in part, in its unfettered and absolute
discretion, the Principal Amount, as well as any interest accrued on this Security to the date of
payment. Upon a declaration of acceleration, such Principal Amount (or part thereof, as the case
may be) and accrued and unpaid interest to the date of payment, shall be immediately due and
payable.

12

 

          Upon the occurrence and during the continuance of any Event of Default, in addition to and
without limitation of the other rights of the Holder hereunder, and subject to the Registration
Statement Effectiveness Restriction:

          (1) all Conversion Rights in respect of accrued Interest shall immediately and automatically
become exercisable and the provisions of this Security pertaining to adjustment of the Conversion
Price and corresponding number of Conversion Rights shall apply mutatis mutandis; and

          (2) Upon the occurrence and during the continuance of any Event of Default, in addition to and
without limitation of the other rights of the Holder hereunder, and subject to the Registration
Statement Effectiveness Restriction, the Holder shall have the right to convert any part of or the
entire amount of the then outstanding principal amount into common stock of the Company, at a
conversion rate that shall be 80% of the average closing price of the Company’s Common Stock for
the twenty (20) trading days immediately preceding the date of the Conversion Notice; provided,
however, that in no event shall this conversion rate ever be less than the applicable “Conversion
Price” of those certain 5.5% Convertible Senior Notes Due 2026 issued by the Company on May 18,
2006. In addition, in no event shall the conversion of the outstanding principal amount result in
the issuance of shares of Common Stock in excess of 19.9% of the total number of shares of Common
Stock outstanding immediately prior to conversion. In such event, the provisions of Section 3,
which deal with conversion, shall apply to such conversion of the Principal Amount of this Security
mutatis mutandis.

     If an Event of Default specified in Section 7(a)(4) or 7(a)(5) occurs with respect to the
Company, the Principal Amount and accrued and unpaid interest on this Security shall become and be
immediately due and payable, without any declaration or other act on the part of the Holder.

     (c) If an Event of Default with respect to this Security occurs and is continuing, the Holder
may pursue any available remedy by proceeding at law or in equity (including a decree of specific
performance and/or other injunctive relief) to collect the Defaulted Payment or interest or any
other amount due and payable on this Security or to enforce the performance of any provision of
this Security.

     (d) Notwithstanding any other provision in this Security, the Holder of this Security shall
have the right, which is absolute and unconditional, to receive payment of the Principal Amount and
accrued interest on or after the respective due dates, to convert the Conversion Account Balance in
accordance with Section 3 or to bring suit for the enforcement of any such payment and/or the right
to convert the Conversion Account Balance, and such rights shall not be impaired or affected
adversely without the consent of the Holder. Amounts set forth or provided for herein with respect
to payments, conversion and the like (and the computation thereof) shall be the amounts to be
received by the Holder and shall not, except as expressly provided herein, be subject to any other
obligation of the Company (or the performance thereof).

13

 

     (e) If the Holder of this Security has instituted any proceeding to enforce any right or
remedy under this Security and such proceeding has been discontinued or abandoned for any reason,
or has been determined adversely to the Holder, then and in every such case, subject to any
determination in such proceeding, the Company and the Holder shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and remedies of the
Holder shall continue as though no such proceeding had been instituted.

     (f) Except as otherwise provided herein, no right or remedy conferred in this Security upon
the Holder is intended to be exclusive of any other right or remedy available to the Holder under
this Security and the Purchase Agreement, and every right and remedy shall, to the extent permitted
by law, be cumulative and in addition to every other right and remedy given hereunder or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

     (g) The Company covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead, or in any manner whatsoever claim to take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect
the covenants or the performance of this Security; and the Company (to the extent that it may
lawfully do so) 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 Holder hereof,
but will suffer and permit the execution of every such power as though no such law had been
enacted.

     SECTION 8. Consolidation, Merger, Etc.

     (a) The Company shall not consolidate with or merge into any other Person or, directly or
indirectly, convey, transfer, sell or lease its properties and assets as, or substantially as,
an entirety to any Person unless:

               (1) In the event that the Company shall consolidate with or merge into another Person or
convey, transfer, sell or lease its properties and assets substantially as an entirety to any
Person, the Person formed by such consolidation or into which the Company is merged or the Person
which acquires by conveyance, transfer or sale, or which leases, all or substantially all of the
properties and assets of the Company shall be a corporation, partnership, limited liability company
or other business entity organized and validly existing under the laws of the United States of
America, any State thereof or the District of Columbia, which shall, prior to or upon the
consummation of such transaction, expressly assume, if other than the Company, by an agreement
supplemental hereto, executed and delivered to the Holder of this Security in form reasonably
satisfactory to the Holder, the due and punctual payment of the Principal Amount of and any
interest on this Security and the performance or observance of every covenant of this Security on
the part of the Company to be performed or observed, including without limitation the Conversion
Rights provided herein; and

14

 

          (2) immediately after giving effect to such transaction, no Event of Default, and no event
which, after notice or lapse of time or both, would become an Event of Default, shall have happened
and be continuing.

     (b) Upon any consolidation of the Company with, or merger of the Company into, any other
Person or any conveyance, transfer, sale or lease of all or substantially all of the properties and
assets of the Company in accordance with Section 8(a), the successor Person formed by such
consolidation or into which the Company is merged or to which such conveyance, transfer, sale or
lease is made shall succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Security with the same effect as if such successor Person had been named as
the Company herein, and thereafter, except in the case of a lease, the predecessor Person shall be
relieved of all obligations and covenants under this Security.

     SECTION 9. N/A

     SECTION 10. Definitions. Unless otherwise defined in this Security, the following capitalized
terms shall have the following respective meanings when used herein:

     “Affiliate” of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person.
For the purposes of this definition, “control”, when used with respect to any specified
Person, means the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing.

     “Board of Directors” means the board of directors of the Company or any authorized
committee of the board of directors.

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not
a day on which the banking institutions in the State of New York are authorized or obligated by law
or executive order to close or be closed.

     “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interest in (however designated)
equity of such Person, but excluding any debt securities convertible into such equity.

     A “Change of Control” shall be deemed to have occurred if any of the following occurs
after the date hereof:

               (1) the consolidation, merger or other business combination (including, without limitation, a
reorganization or recapitalization) of the Company with or into another Person (other than (A) a
consolidation, merger or other business combination (including, without limitation, reorganization
or recapitalization) in which holders of the Company’s voting power immediately prior to the
transaction continue

15

 

after the transaction to hold, directly or indirectly, the voting power of the surviving
entity or entities necessary to elect a majority of the members of the board of directors (or their
equivalent if other than a corporation) of such entity or entities, or (B) pursuant to a migratory
merger effected solely for the purpose of changing the jurisdiction of incorporation of the
Company);

               (2) the sale or transfer of all or substantially all of the Company’s assets; or

               (3) the consummation of a purchase, tender or exchange offer made to and accepted by the
holders of more than 50% of the outstanding shares of Common Stock (other than a purchase or tender
or exchange offer made by the Company or any of its subsidiaries that does not result in the
transaction constituting a “Rule 13e-3 transaction” for purposes of Rule 13e-3 under the
Exchange Act).

     “Closing Date” means the date of the closing of the purchase and sale of this Security
pursuant to the Purchase Agreement.

     “Closing Price” means, as of any date, the last reported sales price per share of
Common Stock on such date or, in case no such reported sale takes place on such date, the average
of the reported closing bid and asked prices in either case on the Nasdaq Stock Market (the
“NSM”) or, if the Common Stock is not quoted on the NSM, on the principal national
securities exchange on which the Common Stock is listed or admitted to trading or, if the Common
Stock is not quoted on the NSM or listed or admitted to trading on any national securities
exchange, the average of the closing bid and asked prices of such security on the over-the-counter
market on the day in question as reported by the OTC Bulletin Board or the Pink Sheets, LLC, or a
similar generally accepted reporting service or, in case such prices are not so available, the
average of the closing bid and asked prices, as furnished by any two members of the National
Association of Securities Dealers, Inc. selected from time to time by the Company for that purpose.
If the Closing Price cannot be calculated for a security on a particular date on any of the
foregoing bases, the Closing Price of such security on such date shall be the fair market value as
mutually determined by the Company and the Holder, provided that any dispute as to such
Closing Price shall be determined by the Company and the Holder in accordance with Section 11(d).

     “Commission” means the United States Securities and Exchange Commission, or any other
federal agency at the time administering the Securities and Exchange Act of 1934, as amended, or
the Securities Act, whichever is the relevant statute for the particular purpose.

     “Common Stock” means any stock of any class of the Company which has no preference in
respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Company and which is not subject to redemption by the
Company.

16

 

     “Convertible Securities” shall mean any evidences of indebtedness, shares (other than
Common Stock) or other securities convertible into or exchangeable for Common Stock.

     “Defaulted Payment” has the meaning set forth in Section 7(a)(1) hereof.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended and the rules and
regulations promulgated thereunder.

     “fair market value” shall, except as otherwise specifically defined elsewhere, mean,
if there is a current market for the asset, debt or transaction in question, the amount that a
willing buyer would pay a willing seller in an arm’s length transaction or, in the absence of a
current market value for such asset, debt or transaction, the amount determined in good faith by an
independent third party jointly selected by the Holder and the Company.

     “Final Maturity Date” has the meaning set forth in Section 2(a) hereof.

     “Holder” means the person in whose name this Security is registered on the Note
Register.

     “Indebtedness” means, with respect to any Person, at any date of determination
(without duplication):

          (a) all obligations and other liabilities (contingent or otherwise) of such Person for
borrowed money (including obligations of the Company in respect of overdrafts, foreign exchange
contracts, currency exchange agreements, interest rate protection agreements, and any loans or
advances from banks, whether or not evidenced by notes or similar instruments) or evidenced by
bonds, debentures, notes or similar instruments (whether or not the recourse of the lender is to
the whole of the assets of such Person or to only a portion thereof),

          (b) all reimbursement obligations and other liabilities (contingent or otherwise) of such
Person with respect to letters of credit, bank guarantees or bankers’ acceptances,

          (c) all obligations and liabilities (contingent or otherwise) in respect of leases of such
Person required, in conformity with generally accepted accounting principles, to be accounted for
as capitalized lease obligations on the balance sheet of such Person,

          (d) all obligations of such Person (contingent or otherwise) with respect to an interest rate
swap, cap or collar agreement or other similar instrument or agreement,

17

 

          (e) all direct or indirect guaranties or similar agreements by such Person in respect of any
obligations or liabilities (contingent or otherwise) of such Person to purchase or otherwise
acquire or otherwise assure a creditor against loss in respect of, indebtedness, obligations or
liabilities of another Person of the kind described in clauses (a) through (d),

          (f) any indebtedness or other obligations described in clauses (a) through (e) secured by any
mortgage, pledge, lien or other encumbrance existing on property which is owned or held by such
Person, regardless of whether the indebtedness or other obligation secured thereby shall have been
assumed by such Person and

          (g) any indebtedness or other obligation resulting from “off-balance” sheet financing, or any
such transaction; and

          (h) any and all deferrals, renewals, extensions and refunding of, or amendments, modifications
or supplements to, any indebtedness, obligation or liability of the kind described in clauses (a)
through (g).

          (i) any partnership obligations of such Person, of the kind described in clauses (a) through
(h).

     “Instrument” means any bond, debenture, note or similar instrument.

     “Note Register” means the register or other ledger maintained by the Company that
records the record owners of this Security.

     “Person” or “person” shall mean and include an individual, a partnership, a
corporation (including a business trust), a joint stock company, a limited liability company, an
unincorporated association, a joint venture or other entity or a governmental authority.

     “Purchase Agreement” means the Securities Purchase Agreement entered into between the
Company and the initial holder of this Security relating to the sale and purchase of this Security.

     “Registration Statement Effectiveness Restriction” means that prior to the
Commission’s declaration of the effectiveness of the Registration Statement that is required to be
filed pursuant to Section 2(a) of the Registration Rights Agreement, dated as of May 26, 2006 by
and among the Company and the buyers listed on the Schedule of Buyers attached thereto, no amounts
outstanding pursuant to this Note will be convertible into equity securities of the Company.

     “Security” means this Convertible Secured Note, as amended, replaced, or supplemented
from time to time, initially issued on March •, 2007.

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

18

 

     “Share Delivery Date” has the meaning set forth in Section 3(a)(1) hereof.

     “Subsidiary” means, in respect of any Person, any corporation, association,
partnership or other business entity of which more than 50% of the total voting power of shares of
Capital Stock or other interests (including partnership interests) entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers, general partners or
trustees thereof is at the time owned or controlled, directly or indirectly, by (i) such Person;
(ii) such Person and one or more Subsidiaries of such Person; or (iii) one or more Subsidiaries of
such Person.

     “Trading Day” means, with respect to any security, a day during which trading in the
security generally occurs on the Nasdaq Stock Market or, if the security is not quoted on the
Nasdaq Stock Market, on the principal other national or regional securities exchange on which the
security then is listed or, if the security is not listed on a national or regional securities
exchange, on the principal other market on which the security is then traded; provided, however,
that “Trading Day” shall not include any day during which trading in the security is suspended for
more than three hours between 9:30 a.m. (New York time) and 4:00 p.m. (New York time).

     “Voting Stock” of a Person means all classes of Capital Stock or other interests
(including partnership interests) of such Person then outstanding and normally entitled (without
regard to the occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof.

     SECTION 11. Miscellaneous.

     (a) The Company will give prompt written notice to the Holder of this Security of any change
in the location of the Designated Office. Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Security must be in writing and will be
deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by facsimile, provided that such notice is also delivered by regular mail; (iii) two (2)
Business Days after deposit with a nationally recognized overnight delivery service, in each case
properly addressed to the party to receive the same. The addresses and facsimile numbers for such
communications shall be:

     If to the Company:

Sipex Corporation

233 South Hillview Drive

Milpitas, CA 95035

Telephone: (408) 934-7500

Facsimile: (408) 935-7678

Attention: Ray Wallin, Chief Financial Officer

19

 

     with a copy to:

Wilson Sonsini Goodrich & Rosati, P.C.

650 Page Mill Road

Palo Alto, California 94304

Telephone: (650) 493-9300

Facsimile: (650) 493-6811

Attention: Robert G. Day

     If to the Holder:

Rodfre
Holdings LLC

c/o Joe Prudente

Future Electronics Corp.

41 Main Street

Bolton, MA, 01740

With a copy to:

Future Electronics Inc.

237 Hymus Blvd.

Pointe Claire, Quebec

H9R 5C7

Telephone: (514) 694-7710 Ext: 2986

Facsimile: (514) 694-7515

Attention: Guy Lavergne, Esq.

Associate General Counsel

     or at such other address and/or facsimile number and/or to the attention of such other person
as the recipient party has specified by written notice given to each other party 5 days prior to
the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of
such notice, consent, waiver or other communication, (B) mechanically or electronically generated
by the sender’s facsimile machine containing the time, date, recipient facsimile number and an
image of the first page of such transmission, or (C) provided by a courier or overnight courier
service shall be rebuttal evidence of personal service, receipt by facsimile, or receipt from a
nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii)
above, respectively.

     (b) (1) The transfer of this Security is registrable on the Note Register upon surrender of
this Security for registration of transfer at the Designated Office, duly endorsed by, or
accompanied by a written instrument of transfer in form reasonably satisfactory to the Company duly
executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon
one or more new Securities, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees. Such Securities are issuable
only in registered

20

 

form without coupons in denominations of $500,000 (or such lesser remaining amount after all
possible issuances in denominations of $500,000). No service charge shall be made for any such
registration of transfer, but the Company may require payment of a sum sufficient to recover any
tax or other governmental charge payable in connection therewith in the event that the Holder
requests that this Security or the Common Stock issuable hereunder be issued in the name of someone
other than the Holder. Prior to due presentation of this Security for registration of transfer,
the Company and any agent of the Company may treat the Person in whose name this Security is
registered as the owner thereof for all purposes, whether or not this Security be overdue, and
neither the Company nor any such agent shall be affected by notice to the contrary.

          (2) This Security and the Common Stock issuable upon conversion of the Conversion Account
Balance have not been registered under the Securities Act, or the securities laws of any state or
other jurisdiction. Neither this Security nor the Common Stock issuable upon conversion of the
Conversion Account Balance nor any interest or participation herein may be reoffered, sold,
assigned, transferred, pledged, encumbered or otherwise disposed of (a “Transfer”) in the
absence of such registration or unless such transaction is exempt from, or not subject to,
registration. The Holder by its acceptance of this Security or the Common Stock issuable upon
conversion of the Conversion Account Balance agrees that it shall not offer, sell, assign,
transfer, pledge, encumber or otherwise dispose of this Security, other than for conversions
pursuant to the terms hereof, or any portion thereof or interest therein. and then (other than
with respect to a Transfer pursuant to a registration statement that is effective at the time of
such Transfer) only to (a) the Company or (b) an Affiliate of the Holder and in the case of (b)
above in which the transferor furnishes the Company with such certifications, legal opinions or
other information as the Company may reasonably request 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.

          (3) Upon presentation of this Security for registration of transfer at the Designated Office
accompanied by (i) certification by the transferor that such transfer is in compliance with the
terms hereof and (ii) by a written instrument of transfer in a form approved by the Company
executed by the Holder, in person or by the Holder’s attorney thereunto duly authorized in writing,
and including the name, address and telephone and fax numbers of the transferee and name of the
contact person of the transferee, such Security shall be transferred on the Note Register, and a
new Security of like tenor and bearing the same legends shall be issued in the name of the
transferee and sent to the transferee at the address and c/o the contact person so indicated.
Transfers and exchanges of this Security shall be subject to such additional restrictions as are
set forth in the legends on this Security and to such additional reasonable regulations as may be
prescribed by the Company as specified in Section 11(b)(2) hereof. Successive registrations of
transfers as aforesaid may be made from time to time as desired, and each such registration shall
be noted on the Note register.

          (4) Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Security, and in the case of loss, theft or destruction, receipt
of indemnity reasonably satisfactory to the Company and upon

21

 

surrender and cancellation of this Security, if mutilated, the Company will deliver a new
Security of like tenor and dated as of such cancellation, in lieu of such Security.

          (5) The Holder represents that it is an “accredited investor” within the meaning of
Rule 501(a) of the Securities Act. The Holder has been advised that this Security and the Common
Stock issuable upon conversion of the Conversion Account Balance have not been registered under the
Securities Act, or any state securities laws and, therefore, cannot be resold unless it is
registered under the Securities Act and applicable state securities laws or unless an exemption
from such registration requirements is available. The Holder is aware that the Company is under no
obligation to effect any such registration or to file for or comply with any exemption from
registration. The Holder has not been formed solely for the purpose of making this investment and
is acquiring the Security for its own account for investment, and not with a view to, or for resale
in connection with, the distribution thereof.

          (6) Such Holder understands that:

               (A) until the end of the holding period under Rule 144(k) of the Securities Act (or any
successor provision), this Security (and all securities issued in exchange therefor or in
substitution thereof, other than the shares of Common Stock issuable upon conversion of the
Conversion Account Balance, which shall bear the legend set forth in Section 11(b)(6)(B) of this
Security, if applicable) shall bear a legend in substantially the following form:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR AN
EXEMPTION THEREFROM.

     The legend set forth above shall be removed and the Company shall issue a new Security of like
tenor and aggregate principal amount, and which shall not bear the restrictive legend required by
this Section 11(b)(6)(A), (i) if, in connection with a sale transaction, the Holder provides the
Company with an opinion of counsel reasonably acceptable to the Company to the effect that a public
sale, assignment, pledge or transfer of this Security may be made without registration under the
Securities Act, or (ii) upon expiration of the applicable two-year holding period under Rule 144(k)
of the Securities Act (or any successor rule). The Company shall not require such opinion of
counsel for the sale of this Security in accordance with Rule 144 of the Securities Act in the
event that the Holder provides such representations that the Company shall reasonably request
confirming compliance with the requirements of Rule 144;

22

 

               (B) until the end of the holding period under Rule 144(k) of the Securities Act (or any
successor provision), any stock certificate representing such shares of Common Stock shall bear a
legend in substantially the following form unless, in the case of shares of Common Stock issued
upon conversion of the Conversion Account Balance, the Security submitted for conversion is not
required to bear the legend specified in Section 11(b)(6)(A):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN EXEMPTION
THEREFROM.

The legend set forth above shall be removed and the Company shall issue a stock certificate
evidencing such shares of Common Stock, as the case may be, without such legend to the holder of
the stock certificate evidencing such shares of Common Stock and upon which such legend is stamped,
(i) if such shares of Common Stock have been resold or transferred pursuant to the registration
statement contemplated by the Purchase Agreement and the registration statement was effective at
the time of such transfer, (ii) if, in connection with a sale transaction, such holder provides the
Company with an opinion of counsel reasonably acceptable to the Company to the effect that a public
sale, assignment, pledge or transfer of the shares of Common Stock may be made without registration
under the Securities Act, or (iii) upon expiration of the applicable two-year holding period under
Rule 144(k) of the Securities Act (or any successor rule). The Company shall not require such
opinion of counsel for the sale of such shares of Common Stock in accordance with Rule 144 of the
Securities Act, provided that the Seller provides such representations that the Company shall
reasonably request confirming compliance with the requirements of Rule 144; and

               (C) in the event Rule 144(k) as promulgated under the Securities Act (or any successor rule)
is amended to change the two-year holding period under Rule 144(k) (or the corresponding holding
period under any successor rule), (i) each reference in Sections 11(b)(6) of this Agreement to
“two-year holding period” shall be deemed for all purposes of this Agreement to be
references to such changed period, and (ii) all corresponding references in this Security shall be
deemed for all purposes to be references to the changed period, provided that such changes shall
not become effective if they are otherwise prohibited by, or would otherwise cause a violation of,
the then-applicable federal securities laws.

          (7) Neither this Security nor any term hereof may be amended or waived orally or in writing,
except that any term of this Security may be amended and the observance of any term of this
Security may be waived (either generally or in a particular instance and either retroactively or
prospectively), upon the approval of the Company and the Holder; provided, however,
that the Company may, without the consent of the

23

 

Holder, amend the Security for the purpose of (i) surrendering any right or power conferred
upon the Company, (ii) providing for Conversion Rights of Holder if any reclassification or change
of the Common Stock or any consolidation, merger or sale of all or substantially all of the
Company’s assets occurs, (iii) providing for the assumption of the Company’s obligations to the
Holder in the case of a merger, consolidation, conveyance, transfer or lease, or (iv) reducing the
Conversion Price, provided that the reduction will not adversely affect the interests of the
Holder.

          (c) In any case in which the date of maturity of, the date of payment of any interest on this
Security will not be a Business Day, then payment of such interest on or Principal Amount of this
Security need not be made on such date, but may be made on the next succeeding Business Day with
the same force and effect as if made on such date of maturity or date of payment, as the case may
be, and no interest shall accrue for the period from and after such date.

          (d) In the case of a dispute as to the determination of the Closing Price, the Conversion
Price, the fair market value of assets (other than cash or securities), or the arithmetic
calculation of any shares of Common Stock to be issued hereunder, the Company shall submit the
disputed determinations or arithmetic calculations via facsimile within one Business Day from the
manifestation of such dispute to the Holder. If the Company and the Holder are unable to agree
upon such determination or calculation of the Closing Price, the Conversion Price or the fair
market value of assets (other than cash or securities), or the arithmetic calculation of any shares
of Common Stock to be issued hereunder, as the case may be, within one Business Day of such
disputed determination or arithmetic calculation being submitted to the Holder, then the Company
shall, within 10 Business Days, submit via facsimile (a) the disputed determination of Closing
Price, the Conversion Price or the fair market value of assets (other than cash or securities) to
an independent, reputable investment bank selected by the Holder and approved by the Company or (b)
the disputed arithmetic calculation of any shares of Common Stock to be issued hereunder to the
Company’s independent, outside accountant. The Company shall make reasonable efforts to cause the
investment bank or the accountant, as the case may be, to perform the determinations or
calculations and notify the Company and the Holder of the results no later than 15 Business Days
from the date it receives the disputed determinations or calculations. Such investment bank’s or
accountant’s determination or calculation, as the case may be, shall be binding upon all parties
absent demonstrable error. The fees and expenses of the accountant or investment bank, as the case
may be, shall be paid by the party whose calculation or determination is, on a percentage basis,
the least closest to that determined by the accountant or investment bank; provided, however, that
if each of the amounts originally determined or calculated by the Company and the Holder are at
least equal to 80% of the amount calculated or determined by the accountant or investment bank but
not more than 120% of the amount calculated or determined by the accountant or investment bank,
then the Company and the Holder will each pay one half of the fees and expenses of such accountant
or investment bank.

          (e) If (a) this Security is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding or the

24

 

Holder otherwise takes action to collect amounts due under this Security or to enforce the
provisions of this Security or (b) there occurs any bankruptcy, reorganization, receivership of the
Company or other proceedings affecting Company creditors’ rights and involving a claim under this
Security, then the Company shall pay the reasonable costs incurred by the Holder for such
collection, enforcement or action or in connection with such bankruptcy, reorganization,
receivership or other proceeding, including but not limited to reasonable attorneys fees and
disbursements.

          (f) THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF MASSACHUSETTS.

[Remainder of page intentionally left blank.]

25

 

IN WITNESS WHEREOF, the Company has caused this Security to be duly executed.

     Dated: March •, 2007

	 	 	 	 	 	 	 
	 	 	SIPEX CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	RODFRE HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

EXHIBIT A

CONVERSION NOTICE

     The undersigned holder of this Security hereby irrevocably exercises the Conversion Rights
granted pursuant to this Security and does hereby convert the amount of the Conversion Account
Balance below designated, into Common Stock in accordance with the terms of this Security, and
directs that such shares, be delivered to and be registered in the name of the undersigned unless a
different name has been indicated below. If shares of Common Stock are to be registered in the
name of a Person other than the undersigned, the undersigned will pay all transfer taxes payable
with respect thereto.

	 	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	RODFRE HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

If shares are to be registered in the name of a Person other than the holder, please print such
Person’s name and address:

	 	 	 
	 

Name

	 	 
	 
	 	 
	 

Address

	 	 
	 
	 	 
	 

	 	 
	Social Security or other Taxpayer Identification Number, if any
	 
	 	 
	Amount of accrued interest: $                    
	 	 

 

 

EXHIBIT B

NOTICE OF ELECTION TO REQUIRE PAYMENT

     Pursuant to Section 4(a)(2) of the this 9% Convertible Unsecured Junior Note Due 2008 dated
March •, 2007 of Sipex Corporation (the “Security”), the undersigned holder of this
Security hereby irrevocably exercises the option to require redemption and repayment of the
principal amount of this Security, together with all accrued interest thereon for which Conversion
Rights have not been exercised, on the day on which the Change of Control (as defined in this
Security) is consummated and directs that such check for such payment be delivered to the
undersigned unless a different name has been indicated below.

	 	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	RODFRE HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

If a check is to be delivered in the name of a Person other than the holder, please print such
Person’s name and address:

	 	 	 
	 

Name

	 	 
	 
	 	 
	 

Address

	 	 
	 
	 	 
	 

	 	 
	Social Security or other Taxpayer Identification Number, if any

 

 

EXHIBIT B

SECRETARY’S CERTIFICATE

 

 

SIPEX CORPORATION

SECRETARY’S CERTIFICATE

March 29, 2007

 

     Reference is made to that certain Securities Purchase Agreement (the “Agreement”) dated as of
March 29, 2007 by and among Sipex Corporation, a corporation organized under the laws of the State
of Delaware (the “Company”), and Rodfre Holdings LLC. All capitalized terms used
but not defined herein shall have the meanings ascribed to them in the Agreement. This Certificate
is being delivered to satisfy the conditions precedent set forth in Section 6(e) of the Agreement.

     I, Clyde R. Wallin, do hereby certify that I am the Secretary of the Company, and that, as
such, I am authorized to execute this certificate on behalf of the Company, and do hereby further
certify that:

	 	1.	 	Attached hereto as Exhibit A is a true and complete copy of the
Restated Certificate of Incorporation of the Company, (the “Certificate”), certified by
the Secretary of State of Delaware on March 26, 2007 as in effect on the date thereof.
No document with respect to an amendment to the Certificate has been filed in the
office of the Secretary of State of Delaware since March 26, 2007, and no action has
been taken by the Company since such date in contemplation of any such amendment or the
dissolution, merger, or consolidation of the Company, other than as contemplated by the
Agreement.
	 
	 	2.	 	Attached hereto as Exhibit B is a true and complete copy of the Amended
and Restated Bylaws of the Company as in full force and effect on the date hereof. No
action has been taken by the stockholders or directors of the Company in contemplation
of any amendment to such bylaws.
	 
	 	3.	 	Attached hereto as Exhibit C is a true and complete copy of the
resolutions duly adopted by the Board of Directors of the Company as of March 29, 2007
authorizing the execution, delivery and performance by the Company of the Agreement and
the other Transaction Documents and the consummation of the transactions contemplated
thereby. Such resolutions have not been amended, modified or rescinded since their
adoption and remain in full force and effect as of the date hereof.

[Signature Page Follows]

-2-

 

     IN WITNESS WHEREOF, I have hereunto signed my name as of March 29, 2007.

	 	 	 	 	 
	 	 	 
	 	     /s/ Clyde R. Wallin
 	 
	 	Clyde R. Wallin, Secretary of the Company 	 
	 	 	 
	 

[Signature Page to the Secretary’s Certificate]

 

 

EXHIBIT A

Restated Certificate of Incorporation

 

 

EXHIBIT B

Amended and Restated Bylaws

-2-

 

EXHIBIT C

Board Resolutions

-3-

 

SCHEDULE A

WIRE INSTRUCTIONS

	 	 	 
	ACCOUNT NAME:

	 	[Deutsche Bank Securities]
	 
	 	 
	THE BANK:

	 	[Allfirst Bank Baltimore MD]
	 
	 	 
	ACCOUNT NUMBER:

	 	[068-87-618]
	 
	 	 
	ABA/TRANSIT NUMBER:

	 	[052000113]
	 
	 	 
	FOR FURTHER CREDIT TO:

	 	[Sipex Corporation
	 

	 	Account# 210-71019-13]exv10w46

 

Exhibit
10.46

ENGLISH
TRANSLATION — EXECUTED DOCUMENT IS IN SPANISH

CONTRACT No. VSM-GPS-011-2006

	 	 	 
	CONTRACT No.

	 	VSM-GPS-011-2006
	BUYER:

	 	ECOPETROL S.A.
	SELLER:

	 	ARGOSY ENERGY INTERNATIONAL
	PURPOSE:

	 	   CRUDE PURCHASE-SALE OF THE SANTANA
	 

	 	   SHARED RISK CONTRACT (CPR-SANTANA)
	 

	 	   AND GUAYUYACO ASSOCIATION CONTRACT

The contracting parties, namely: ECOPETROL S.A., a decentralized entity of the national order,
established through Law 165 of 1948, organized as a joint Stock Company pursuant to Decree 1760 of
2003, with Tax Identification Number 899-999-068-1, attached to the Ministry of Mines and Energy,
with main domicile in Bogotá D.C., whose corporate bylaws are contained in Public Deed No. 4832
dated October 31, 2005, and Public Deed 4302 of September 26, 2006, from the Second Notary of the
Bogotá D.C. Circle, hereinafter and for all purposes of this contract referred to as ECOPETROL or
the BUYER, represented herein by CAMILO MARULANDA LOPEZ, of legal age and resident of this city,
bearer of Identity Document No. 10.008.868, issued in Pereira, who in his capacity as Supply and
Marketing Vice President and in exercise of the authorization contained in the Administrative
Control Manual acts in the name and on behalf of this corporation and, on the other hand, ARGOSY
ENERGY INTERNATIONAL, a company incorporated through Public Deed No. 5323 on October 25, 1993,
granted by the Seventh Notary of Bogotá, registered on November 23, 1983 under Number 2092 of Book
VI, with Mercantile Register No. 00841851, and its main domicile in Bogotá, DC., who for all
purposes contained herein is referred to as the SELLER, represented by EDGAR LOUIS DYES, as
evidenced in the certificate of incumbency and legal representation, of legal age, resident of
Bogotá DC, bearer of Alien’s Identity Document Number 223.325, acting in his capacity as Legal
Representative. The Legal Representative of the SELLER states that neither him, nor the
corporation he represents, are involved in any of the inability or incompatibility causes provided
for in the Political Constitution or in the Law, which may hinder the execution of this contract.
In the aforementioned conditions, ECOPETROL S.A. and the SELLER, who are jointly referred to as the
Parties and individually as the Party, agree to subscribe to this Contract, based on the following
clauses:

WHEREAS:

	 	1)	 	On May 27, 1987, ECOPETROL and the SELLER entered into the Shared Risk Contract for
the exploration and exploitation of hydrocarbons, known as the Santana Shared Risk
Contract (CPR Santana), with effective date of commencement on July 27, 1987, and

 

 

	 	 	 	the Guayuyaco Association Contract, with effective date of commencement on September 30,
2002.

	 	2)	 	The SELLER is the owner of thirty five percent (35%) of the crude production from the
Santana Shared Risk Contract (CPR Santana) fields (Miraflor, Mary, Linda and Toroyaco),
and ECOPETROL is the owner of sixty five percent (65%), after deducting the percentage
corresponding to royalties. As to the Guayuyaco Field, the SELLER is the owner of seventy
percent (70%), and ECOPETROL is the owner of thirty percent (30%) after deducting the
percentage corresponding to royalties.
	 
	 	3)	 	For purposes of subscribing to this contract, ECOPETROL S.A. verified in advance in
the fiscal accountability bulletin, prepared and published by the General Comptrollership
of the Republic, that the SELLER is not listed in said bulletin as one of the persons who
have been the subject of a firm fiscal responsibility decision, who have not complied with
the obligations contained therein.
	 
	 	4)	 	In accordance with the provisions of the Administrative Control Manual of the
company, the Supply and Marketing Vice President is the competent party to execute this
contract.
	 
	 	5)	 	ECOPETROL S.A., has the respective budgetary availability in its expense budget for
performance of the contract discussed hereunder.
	 
	 	6)	 	In accordance with the provisions contained in the Procurement Manual of ECOPETROL
S.A., considering the capacity of the SELLER as associate of ECOPETROL S.A. in the
contract for discovered non-developed fields and inactive fields of the Santana Shared
Risk Contract (CPR Santana) and the Guayuyaco Association Contract, and taking into
account Legal Opinion VCG-L of July 18, 2001, issued by the Legal Support Coordination of
the International Trade and Gas Vice-Presidency, it is viable to ignore the performance
bond to the SELLER.
	 
	 	7)	 	The SELLER has accredited, through a certification issued by the Statutory Auditor,
that it was in compliance with its obligations in front of all health, professional risks,
and pension systems, as well as contributions to Family Compensation Funds, Colombian
Institute for Family Welfare and National Apprenticeship Service, with respect to all its
workers.

AGREE

CLAUSE
ONE. — PURPOSE AND AMOUNTS: The SELLER undertakes to sell and deliver to the BUYER all of
the crude of its property produced in the Santana Shared Risk Contract (CPR Santana) and the
Guayuyaco Association Contract, according to the quality parameters provided for in Clause Three.
In turn, the BUYER undertakes to receive and pay for the crude, in accordance with the terms and
conditions set forth hereunder.

The crude that is the subject of this contract shall be devoted to exports and, in the event of it
being devoted to refining, this event shall be promptly communicated by ECOPETROL S.A. to the
SELLER.

 

 

CLAUSE
TWO. — PRICES: The prices for the crude that is the subject
of this purchase — sale
agreement, at the site of delivery agreed and indicated in Clause Three herein, shall be referenced
to the West Texas Intermediate (WTI) crude quoted price, Cushing, Prompt Month, with the following
discounts:

	 	 	 
	WIT Quote	 	Price to be paid
	US$BL	 	US$BL
	Lower than 15.0

	 	WTI-4.10
	BETWEEN 15.01 AND 20.0

	 	WTI-5.10
	BETWEEN 20.01 AND 25.0

	 	WTI-5.60
	BETWEEN 25.01 AND 30.0

	 	WTI-6.50
	BETWEEN 30.01 AND 35.0

	 	WTI-7.10
	BETWEEN 35.01 AND 40.0

	 	WTI-8.60
	BETWEEN 40.01 AND 45.0

	 	WTI-9.55
	BETWEEN 45.01 AND 50.0

	 	WTI-10.50
	BETWEEN 50.01 AND 55.0

	 	WTI-11.35
	BETWEEN 55.01 AND 60.0

	 	WTI-12.30
	Greater than 60.01

	 	WTI-13.25

The West Texas Intermediate crude price shall be calculated as the arithmetical average of the mean
quote published daily in the month of the delivery by Platt’s Crude Oil Marketwire for the Gulf
Coast of the United States.

PARAGRAPH 1: The price set through the above mentioned formula comprises the various costs for
transport, management, measurement, taxes, etc., chargeable to the SELLER that are caused up to the
delivery of the crude that is the subject of this contract, at any of the indicated sites and,
therefore, ECOPETROL S.A. shall make no additional payment on such account, except for the Added
Values Tax (VAT), which the SELLER shall invoice in accordance with the provisions of the
Government on the date of invoicing.

CLAUSE
THREE. — QUALITY: The typical quality of the Santana Shared Risk Contract (CPR Santana), and
the Guayuyaco Association Contract to be supplied shall have the following specifications:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	API	 	SULFUR	 	BSW %	 	SAL Lb/1000 Bls
	 	 	 	 	 	 	in maximum volume	 	Maximum
	26.4°

	 	 	0.65	 	 	 	0.5	 	 	 	20.0	 

	 	1.	 	The gravity of the crude will be determined through the laboratory method ASTM-D-287
(API Gravity).
	 
	 	2.	 	The water and sediment content, BSW, will be determined using the ASTM-D4377 “Water
in oil products and bituminuous material by Karl Fisher” method, latest revision, and
ASTM-D473 “Sediments in crude and fuel oil by extraction”, latest revision. For the
content of water and sediments in the crude, the maximum individual values will be
accepted: 0.4% volume for water and 0.1% volume for sediments.
	 
	 	3.	 	The sulfur content will be determined through the ASTM-D4294 “X-ray sulfur analysis”
method, latest revision.

 

 

	 	4.	 	The salt content will be determined through the ASTM-D3230 “salts in crude
(electrometric method)” method, latest revision.

PARAGRAPH 1: When any of the specifications indicated are not within the allowed margin, ECOPETROL
S.A. reserves the right to receive the crude and to purchase it at an adjusted price. In such
events, the crude price shall be adjusted as follows:

	 	a)	 	API-based correction: +/- 0.15 US$ / Unit of ° API or prorated by fraction. The price
adjustments shall be positive for API gravities of crude above the reference value and
negative for lower gravities. Such adjustments shall be allowed in a range of + / — 3.0
°API; for values out of this range, the prices will be renegotiated.
	 
	 	b)	 	SULFUR-based correction: +/- 0.50 US$ / Unit of sulfur % in weight or prorated by
fraction. The price adjustments shall be positive for a percentage of sulfur in the crude
below the reference value, and negative for greater values.
	 
	 	c)	 	BSW and Salt-based corrections – These shall be applicable according to the following
tables:

	 	 	 	 	 
	BSW Content	 	Penalization 	 	Chargeable to
	% in volume	 	Dollars of the United 	 	 
	 	 	States per barrel (US$ /	 	 
	 	 	barrel)	 	 
	0.51 to 0.80
	 	0.10	 	SELLER
	0.81 to 1.00
	 	0.20	 	SELLER
	1.01 to 1.20
	 	0.30	 	SELLER
	1.21 to 1.50
	 	0.40	 	SELLER
	> than 1.51
	 	0.50	 	SELLER

	 	 	 	 	 
	Salt content
	 	Penalization	 	Chargeable to
	LBS per each thousand
	 	Dollars of the United	 	 
	barrels
	 	States per barrel	 	 
	 
	 	(US$ / Barrel)	 	 
	20.1 to 30.0
	 	0.160	 	SELLER
	30.1 to 40.0
	 	0.180	 	SELLER
	40.1 to 60.0
	 	0.200	 	SELLER
	60.1 to 80.0
	 	0.220	 	SELLER
	80.1 to 100.0
	 	0.240	 	SELLER
	> than 100.0
	 	0.300	 	SELLER

It is hereby understood that the SELLER shall make all possible efforts to deliver the crude
contracted with the BSW and Salt content within the agreed parameters. Such corrections shall be
applied for daily deliveries or for each batch delivered. Any variation related to the
above-mentioned quality certifications, which is accepted by both parties, must be recorded in a
previous certificate signed by the representatives of ECOPETROL S.A. and the SELLER.

PARAGRAPH 2: INSPECTION AND MEASUREMENT. The determination of the quality parameters shall be made
at the Point of Delivery, and it will follow the operational procedures established by the Parties
in a written certificate that

 

 

must be signed prior to commencing performing of the Contract. The procedures adopted by the
Parties, must be subject to the Single Measurement Manual of ECOPETROL S.A. (Annex 1). The
official measurement for transferring custody shall be that determined at the Santana Station,
Puerto Asis Municipality, in the LACT UNIT / LAFERT, property of CPR Santana Joint Operation.

The content of sulfur in the crude, for invoicing purposes, shall be the value reported by
the Colombian Petroleum Institute, ICP, according to the half-yearly analyses performed for each
crude. ECOPETROL S.A. shall update this information every half year, and will make it available to
the SELLER. Any of the parties may designate, as desired, an independent inspector to certify the
quality and quantity, verify the measurement of the tanks or the calibration of the volume metering
instruments. The cost shall be shared equally between ECOPETROL S.A. and the SELLER.

CLAUSE FOUR: POINT OF DELIVERY AND PROPERTY: The BUYER and the SELLER agree that, for purposes of
this Contract, the Point of Delivery and the transfer of property of the crude that are the subject
matter of this purchase — sale agreement shall take place at the Santana Station, Puerto Asis
Municipality, in the LACT UNIT / LAFERT property of the CPR Santana Joint Operation. The SELLER
transfers to the BUYER the property of the crude at the Point of Delivery. The SELLER guarantees
that at the time of delivery the crude shall be free from any tax, property limitation or any legal
or extralegal measure that could restrict or limit the use or disposal of the crude by the BUYER.
The costs related to crude transport up to the Point of Delivery, as well as the costs associated
with the delivery of the crude, shall be borne by the SELLER.

PARAGRAPH 1: Any of the Parties may propose the change or addition of a Point of Delivery; in such
event, the Parties, by mutual consent, shall define the new Point or Points of Delivery and the
conditions that will govern, through a prior certificate to be signed by the Parties. Such
certificate will be an integral part of this Contract. If no agreement is reached, or if the
change or addition proposal is not accepted, the Point or Points of Delivery shall continue
unmodified.

PARAGRAPH 2: The SELLER must deliver at the latest on the twentieth (20th) day of each
month a tentative delivery schedule for the next month, for each point of delivery.

PARAGRAPH 3: It is the obligation of the SELLER to supply and keep records of production, royalty
calculations and share of the partners, shipment by tanker truck and / or pipeline, indicating the
share and property of each one and the official reception thereof at the receiving station. To
such end, it must supply daily to ECOPETROL S.A. the information requested in Annex 2, or any other
that modifies it, which is reported by ECOPETROL S.A.

CLAUSE
FIVE. — TERM OF PERFORMANCE: The term of performance of this Contract shall commence once
the certificate of commencement is signed,

 

 

which will be signed only when all the events set forth in Clause Nineteen hereunder have been
completed, and it shall end on July 31, 2010.

CLAUSE
SIX. — INVOICING AND WAY OF PAYMENT. Based on the volume and quality of the crude received
by ECOPETROL S.A., the SELLER shall invoice and charge ECOPETROL S.A., at its offices of the
Barrancabermeja Complex Management, within the first ten (10) calendar days each month, for the
crude delivered to ECOPETROL S.A. during the immediately preceding month. Within the first seven
(7) days of the aforementioned period, ECOPETROL S.A. shall provide the SELLER with the information
it may require to prepare the respective invoices.

The invoices shall be based on net volumes, free of water and sediment, revised at 50 degrees F.
For approval of the invoices, it is a requirement to present official form Chart No. 4 and / or
Form No. 9SH, duly completed by the Ministry of Mines and Energy. The invoice must be sent through
certified mail and the valid date of submittal for payment shall be that indicated as received in
the accounts payable office of the Barrancabermeja Complex Management.
The payment shall be made within thirty (30) calendar days following the submitting of the duly
completed invoice, prior legal withholdings, if applicable, as follows: a) one part payable in
Colombian pesos, equivalent to twenty-five (25%) of the volumes determined and delivered, in
accordance with the provisions contained herein; b) the remaining seventy five percent (75%) in
dollars of the United States. Notwithstanding the above, the invoice can be split in pesos and
dollars, in the proportion agreed by the Parties.

With respect to the foregoing payments, the SELLER shall supply to ECOPETROL S.A., in advance and
in writing, the bank accounts where the respective payments are to be made. For purposes of
converting dollars into pesos and to pay for the portion that is paid in such currency, the market
representative rate, as per certification of the Finance Superintendence of Colombia, must be used,
calculated as the arithmetical average of the respective month of
crude deliveries.

PARAGRAPH 1: In the event of an unjustified delay in payment of the invoices for the dollar portion
of invoices not objected on time by ECOPETROL S.A., according to the provisions contained herein,
ECOPETROL S.A. shall accept paying interest to the SELLER in dollars, at the Prime Rate equivalent
rate indicated by the Chase Bank of New York, during the days of default effectively elapsed, plus
two percent points (2%). In the event of an unjustified delay in payment for the part of the
contract calculated in pesos, ECOPETROL, with respect to the respective value of the default
payment, shall pay to the SELLER the maximum monthly interest authorized by the Final
Superintendence. The invoices for interest payment, whether in pesos or in dollars, shall be paid
by ECOPETROL S.A. within ten (10) calendar days following the receiving of the respective invoices
by ECOPETROL S.A.

PARAGRAPH 2: ECOPETROL S.A. shall have fifteen (15) business days, counted as of the date of
receiving the crude sale invoices, for reviewing or objecting them. In the event of objections
regarding the invoices, ECOPETROL S.A. undertakes to pay the non-objected part of the invoice, in
accordance with the parameters established herein. ECOPETROL S.A. shall notify the SELLER

 

 

within the term established, about any invoice that is objected for adjustment and revision,
clearly indicating the part that must be adjusted or revised and the reasons therefor. The SELLER
must respond to the objection within twenty (20) business days following its receipt, counted as of
the time in which ECOPETROL S.A. provides the SELLER with all the documents that gave rise to the
claim, except if the Parties, by mutual consent, agree on extending such term, if the complexity of
the objection or any other reasonable circumstance so require it. Should the SELLER fail to
respond to the objection within the described term, the objection shall be understood as accepted
by the SELLER. If the SELLER solves the objection in favor of ECOPETROL S.A., it shall be
understood that there was no payment obligation on such account. If the SELLER resolves the
objection in its favor, ECOPETROL S.A. shall be committed to pay the unpaid amount. To settle any
discrepancy, each one of the parties must provide the other party with copy of the documents that
gave rise to the invoice and to the objection. In the event that ECOPETROL S.A. is in disagreement
with the decision of the SELLER, it may apply the provisions contained in Clause Twenty One of this
Contract.

PARAGRAPH 3: The SELLER and ECOPETROL S.A. mutually waive the private or legal requirements to be
constituted in default.

CLAUSE
SEVEN. — PRICE RENEGOTIATION. Any of the Parties may request the renegotiation of the Price
established in Clause Second, provided that any of the events considered in the following section
occurs:

	 	1.	 	A change of more or less three (3) degrees API in the quality of crude oil produced
in the Contracted Area.
	 
	 	2.	 	A change of more or less one (1) grade API in the quality of the Marker Crude during
a continuous period of six (6) months. The request for renegotiation must take place in
the month following the six (6) consecutive months period.
	 
	 	3.	 	In the event that the Marker Crude is eliminated and it is not necessary to define a
new Marker.
	 
	 	4.	 	When there are variations in the market conditions that affect the financial
equilibrium of the Parties in performance of this contract.
	 
	 	5.	 	As of said request by the Parties, they shall have a thirty (30) day term for
negotiating. At the end of this term, without having reached an agreement, any of the
Parties may notify the other Party about its intention of terminating the Contract,
according to Clause Twenty Five.

	 	 	Should an agreement be reached in regard to the formulas to calculate the price, these shall be
applied since the perfectioning of the contract amendment. The termination does not exempt any of
the Parties from fulfilling their obligations that have already been caused.
	 
	 	 	CLAUSE EIGHT. — SAFETY – HSE: It is a special obligation of the SELLER to have in place hygiene,
safety and occupational health programs for the Crude delivery operation at the Point of Delivery
agreed in Clause Four.

 

 

CLAUSE
NINE. — SPECIAL OBLIGATION OF THE SELLER: It is a special obligation of the SELLER to comply
with its obligations with the all health, professional risks, and pension systems, as well as
contributions to Family Compensation Funds, Colombian Institute for Family Welfare and National
Apprenticeship Service, with respect to the contribution of workers of the SELLER who are involved
in performance of the subject matter of this Contract (Art. 50, Law 789 of 2002 and Article 1 of
Law 828 of 2003). To prove said compliance, the SELLER must present, monthly, a certificate issued
by the Statutory Auditor, or in the event of not having a legal obligation of having a Statutory
Auditor, by its representative, proving that the SELLER is in compliance with all obligations
related to the aforementioned parafiscal contributions.

CLAUSE
TEN. — AUTHORIZATION FOR DISCOUNT: The SELLER authorizes ECOPETROL S.A. to discount from
pending balances in its favor the respective amounts when failing to pay on time any of its labor
obligations related to the workers used in fulfilling the subject matter of this contract.
According to the foregoing and in agreement with Article 50 of Law 789 of 2002, the SELLER
authorizes ECOPETROL S.A. so that, in the event of not making a timely payment of any of its
obligations related to parafiscal contributions (health, professional risks, and pension systems,
as well as contributions to Family Compensation Funds, Colombian Institute for Family Welfare and
National Apprenticeship Service,) of the workers used in performance of this contract, ECOPETROL
S.A. can retain the respective amounts from balances owed to the SELLER.

ECOPETROL S.A. shall pay directly to the health, professional risks, and pension systems, as well
as contributions to Family Compensation Funds, Colombian Institute for Family Welfare and National
Apprenticeship Service, the withheld amounts related to the respective contributions, assigning
priority to the health and pension systems.

CLAUSE
ELEVEN. — MANAGEMENT AND THIRD PARTY INSPECTORSHIP. The Supply and Marketing Vice President
shall designate the administration and inspectorship of this contract among officials of the
Planning and Supply Management, who will exercise their faculties and obligations established in
the Inspectorship and Administration Manual of ECOPETROL S.A., which the SELLER hereby declares to
be aware of.

CLAUSE
TWELVE. — FINES. ECOPETROL S.A. must impose fines on the SELLER in the event of
non-compliance with its obligations related to health, professional risks, and pension systems, as
well as contributions to Family Compensation Funds, Colombian Institute for Family Welfare and
National Apprenticeship Service, related to the workers that the SELLER uses in performance of the
subject matter of this Contract (Article 50, Law 789 of 2002 and Article 1 of Law 828 of 2003).
Said fines shall be for the amount equivalent to 0.1% of the value of the last invoice submitted by
the SELLER, before the non-compliance, for each day in which the non-compliance lasts until it is
fulfilled or, otherwise, in any manner up to four (4) months, in which case the exceptional
administrative expiry clause shall apply. Following verification of the

 

 

default, through a liquidation made by the administrative entity, the value of the fine shall be
discounted from the respective invoice of the month following that in which it was imposed.

The SELLER expressly authorizes ECOPETROL S.A. to impose and discount from the balances in its
favor, any fines referred to in this Clause. For imposing fines, the report from the Contract
Administrator shall suffice. For payment of the fines, the obligations derived from this Contract
shall not be released, nor shall the SELLER be exempt from indemnity for the respective harm.

Should there not be any balance in favor of the SELLER for discounting the amounts resulting form
the application of this Clause, ECOPETROL S.A. shall collect them through executive means, in which
case the contract shall constitute right for execution.

PARAGRAPH: PROCEDURE FOR IMPOSING FINES: The following procedure shall be followed to impose fines:
a) The administrator of the contract shall notify in writing by providing the Legal Representative
of the SELLER with the report submitted to ECOPETROL S.A. regarding the failure to comply with the
provisions in this Contract, warning it that the fines will be imposed through a justified document
that can be objected by the SELLER within the term established by ECOPETROL S.A.; b) should the
SELLER consider that there were causes beyond his control that led to the failure to comply, it
must so explain in a note addressed to the Contract Administrator, which is to be presented in
ECOPETROL S.A. within three (3) business days following the receipt of the notice mentioned in
above section a). In such note, the reasons exempting him from responsibility in compliance shall
be presented, attaching any pertinent evidence to request that no monetary sanction be imposed; c)
If the reasons and evidences presented by the aforementioned failure in compliance (in the event
that a written notice and the pertinent evidences have been submitted within the term established
in the previous section), do not prove the occurrence of a cause for exempting responsibility in
accordance with the provisions established herein and in the Colombian Law, ECOPETROL S.A., through
a justified act, which can be objected by the SELLER within five (5) business days following the
notification of the act, shall impose the fine or monetary sanction provided for in this Clause,
and shall discount the respective amount from the invoice of the month following the imposition of
the sanction.

CLAUSE
THIRTEEN. — EXPIRY. In compliance with Law 828 of 2003, ECOPETROL S.A. must declare the
expiry of the contract if during its performance or if on the date of its liquidation, the failure
to comply by THE SELLER, has persisted for four (4) months, with respect to its obligations with
the health system, professional risks, pensions and contribution to the Family Compensation Fund,
the Colombian Institute of Family Wellbeing and the National Apprenticeship Service (Article 50 Law
789 of 2002 and Law 828 of 2003).

If the expiry is declared, the indemnity for the SELLER shall not be applicable, and the latter
shall be subjected to the sanctions and inabilities provided for in the Law. The declaration of
expiry shall constitute a default event.¡.

 

 

ECOPETROL S.A. shall declare caducity through a motivated resolution that will timely notify the
SELLER, who can file an appeal. The SELLER shall have the right, prior any applicable deductions
pursuant to the clauses of this Contract, to be paid for the part of the work, goods or services
received at the satisfaction of ECOPETROL S.A., until the executory date of the administrative act
where the caducity is declared.

CLAUSE
FOURTEEN. — ASSIGNMENT. The SELLER can assign, sell or transfer all or part of its rights
and obligations acquired herein to a third party, without the prior and written consent of
ECOPETROL S.A.

CLAUSE
FIFTEEN. — FORCE MAJEURE. For purposes of this Contract, Force Majeure or Act of God shall
be understood as any event that can be considered as such, according to the Colombian Law, which is
unforeseeable and irresistible, duly proved and provided that it is beyond the control of the
parties and that it occurs without guilt or negligence. Neither ECOPETROL S.A., nor the SELLER
shall be responsible for failure to comply or for imperfect compliance with all or any of its
obligations provided for in this Agreement, if said failure is caused by duly proved Force Majeure
or Act of God events. The Force Majeure shall not exempt ECOPETROL S.A. from its obligations of
paying to the SELLER all the invoices on account of crude supplied that has been delivered by the
SELLER, pursuant to the terms established hereunder.

PARAGRAPH 1: The Party invoking the occurrence of a Force Majeure or Act of God event shall make
its best efforts to remedy the cause that gave rise to its declaration and shall inform the other
Party of the date and time in which said event was overcome.

PARAGRAPH 2: The Party that is notified of the Force Majeure or Act of God may request all
information to support the declaration, and the affected Party must provide it within five (5)
business days following the request. Should there be any discrepancies between the Parties
regarding the configuration of the event, the controversy solution mechanisms foreseen in Clause
Twenty-One of this Contract shall be applied.

CLAUSE
SIXTEEN. — APPLICATION OF COLOMBIAN LAWS. This Contract is governed by the Colombian Law.

CLAUSE
SEVENTEEN. — NOTIFICATIONS. Any notifications issued in accordance with this Contract, must
be sent by certified mail, fax, telex or be delivered at the addresses indicated herein below, and
shall be considered received at the respective address, on the date shown in the mail received or
on the date on which the telex or fax are sent:

COMMERCIAL NOTIFICATIONS

THE BUYER

ECOPETROL S.A.

PLANNING AND SUPPLY MANAGEMENT

 

 

Carrera 7 No. 37-69, Piso 5, Bogotá, D.C.

Telephones: (57 + 1) 2 344606

Fax: (57 + 1) 2 344869

THE SELLER

ARGOSY ENERGY INTERNATIONAL

General Management

Diagonal 108 No. 7-54, Bogotá D.C.

Telephones: (57 + 1) 619 2095

Fax: (57 + 1) 619 2098

INVOICING NOTIFICATIONS

THE BUYER

ECOPETROL S.A.

Barrancabermeja Complex Management

Attn: Ludy Cristancho

Barrancabermeja, Santander

Telephones: (57 + 7) 620 8958

Fax: (57 + 7) 20 9077

E-mail: ludy.cristancho@ecopetrolS.A.com.co

THE SELLER

ARGOSY ENERGY INTERNATIONAL

Financial Management

Diagonal 108 No. 7-54, Bogotá D.C.

Telephones: (57 + 1) 619 2095 Ext. 212

Fax: (57 + 1) 619 2098

E-mail ecruzya@argosy.com.co

CLAUSE
EIGHTEEN. — TAXES AND EXPENSES. Each one of the Parties to
this purchase – sale agreement
declares that it knows and accepts the taxes and / or withholdings applicable in accordance with
the current law. The stamp tax shall be paid in equal parts by the SELLER and ECOPETROL S.A. For
purposes of the stamp tax, the value of this purchase – sale agreement is considered undetermined.
The final value shall be that resulting from applying the unit prices agreed in Clause Fifth of
this document, based on the production volume from the fields delivered by the SELLER and accepted
by the BUYER. The Value Added Tax, VAT, shall be invoiced by the SELLER in accordance with that
provided for by the government on the date of invoicing. Similarly, the SELLER declares to know
and accepts all other withholdings that are applicable by virtue of the entering into and the
completion of this transaction.

Payment of all national, departmental and municipal taxes, liens, rates, contributions,
installments or similar, which are caused by or may be derived from this contract, including, but
without limitation, those incurred due to the entering into, legalization, performance and
termination and liquidation of this Contract, or that arise after the date of execution of this
Contract, shall be chargeable to the passive subject on the respective tax, who must pay it in

 

 

accordance with the laws and regulations in force, except for that set forth for the stamp tax.

PARAGRAPH: For purposes of paying the stamp tax, each Party is liable for 50% of the caused tax
payment, and consequently ECOPETROL S.A. shall retain from the Seller in each invoice 100% of the
tax in question, which is to be paid by ECOPETROL S.A. directly to the tax authorities.

CLAUSE
NINETEEN. — PUBLICATION. The publication of this contract in the Only Public Procurement
Journal shall be the responsibility of the SELLER and it shall be a requirement for performance of
the Contract. Once the respective receipt of payment of this duty is submitted, ECOPETROL S.A.
shall send to the National Printing Office of Colombia the original of the Only Publication
Statement, within ten (10) days following said delivery.

CLAUSE
TWENTY. — PERFECTIONING. This Contract shall be perfectioned after its execution and with
the respective budget registration.

For purposes of performance, it is a requirement to accredit payment of publication in the Only
Public Procurement Journal and the Certificate of Procedure of Calculation and Liquidation of the
Invoices.

CLAUSE
TWENTY-ONE. — CONTROVERSY SOLUTION. Direct Negotiation. In the event of any type of
disagreement, any of the parties shall be compelled, in first instance, to request the other party
the direct solution thereof. To such end, the Party considering that there is a disagreement shall
notify it to the other Party within twenty (20) days following the occurrence or verification
thereof, so that within ten (10) business days following the receipt of the notification, the
Parties shall meet to settle the disagreement in question in an amicable manner, and within the
twenty (20) business day term. Once this period has expired, without having reached an agreement,
the conciliation mechanism shall be resorted to, which will be processed before the Center for
Arbitration and / or at the Conciliation Center of the Bogotá D.C. Chamber of Commerce. In the
event that the conciliation fails, that there is no conciliatory spirit or that only partial
agreements are reached, the Parties must resort immediately to the controversy solution mechanisms
mentioned in the following sections.

Controversies of a Legal Nature. The disagreements of a legal nature and, in general, the
disagreements that are not considered of a technical or accounting nature, derived from or related
to this Contract, which have not been settled in accordance with the procedures mentioned in the
previous paragraph, shall be subject to the decision of an Arbitration Court made up of three (3)
Colombian Lawyers. The Parties shall be committed to make their best effort to agree on the
designation of the three (3) arbitrators, as the case may be, within a term not exceeding
forty-five (45) business days as of the expiration of the term foreseen for the direct negotiation.
Should the Parties not reach an agreement for designating all or any of the arbitrators, it is
understood that the Parties delegate their appointment on the Center for Arbitration and
Conciliation of the Bogotá D.C. Chamber of Commerce, out of their list, upon request of any of the
Parties. The arbitrators shall decide in law; the Court shall convene at the

 

 

Center for Arbitration and Conciliation of the Bogotá D.C. Chamber of Commerce and it shall operate
and function in accordance with the regulations of said Center, with the fees established by that
Center and not on those provided for hereunder, pursuant to legal provisions.

In the event of discrepancies related to the nature of the controversy, it shall be considered
legal.

Controversies of a Technical and / or Accounting Nature. Any difference of a technical and / or
accounting nature arising between the Parties with respect to the interpretation, application or
termination of this Contract, shall be subjected to the final decision of three (3) experts
designated by the Parties upon mutual consent. If within thirty (30) days following the date in
which the controversy has been stated in writing by one of the Parties there is no agreement
regarding the designation of one or all the experts, they shall be appointed by the Board of
Directors of the Colombian Engineers Society, SCI, which is domiciled in Bogotá D.C., upon request
of any of the Parties. Any difference of an accounting nature arising between the Parties with
respect to the interpretation and performance of the Contract, shall be subjected to the decision
of three (3) experts designated by the Parties upon mutual consent, who must be Certified Public
Accountants. If the Parties do not reach an agreement regarding the designation of any or all the
experts, they should be appointed by the Central Board of Accountants of Bogotá D.C., upon request
of any of the Parties.

The decision of the experts shall be final and must be issued in a term not to exceed ninety (90)
days, counted as of the date of designation of the three experts. The Parties may agree in writing
any extension to this term.

PARAGRAPH 1: The costs, fees and expenses associated with the necessary procedures to settle
conflicts discussed in this Clause shall be paid by the Party or Parties as determined by the
respective Arbitration Court or the Experts, as the case may be.

CLAUSE
TWENTY-SECOND. — SPANISH LANGUAGE. This Contract shall be written in Spanish and it is the
only way of obligation between the Parties. Any translation into another language shall be only
for reference purposes of the Parties, and it shall not affect whatsoever the meaning or
interpretation of the Spanish version.

CLAUSE
TWENTY-THREE. — VALUE OF THE CONTRACT. The value of the Contract is undetermined.

CLAUSE
TWENTY-FOUR. — CONFIDENTIALITY OF INFORMATION. For purposes of this Clause, the Party that
reveals or makes public the information shall be referred to hereinafter as the Disclosing Party,
and the Party receiving the information shall be referred to hereinafter as the Receiving Party.
The Parties agree that any information of a technical, commercial, industrial or financial nature
that is supplied, exchanged and / or prepared by the Parties in performance of this Contract, or
that any of the Parties develops, receives or

 

 

obtains with respect to this Contract (hereinafter “Confidential Information” or “Information”)
shall be subject to strict reserve and confidentiality through the term of the Contract, and for
the three (3) years following its date of termination.

For purposes of this Contract, the Confidential Information shall not be the information that: (i)
is of public domain at the time of being disclosed or becomes of public knowledge, after it is
revealed, by means other than acts or omissions of the Receiving Party; (ii) it is known by the
Receiving Party before or at the time of being received or obtained under this Contract, without
such knowledge being generated by the violation of a confidentiality obligation; (iii) it is
developed by the Receiving Party independently or based on information or documentation received
from a Third Party, without the latter constituting, in turn, the violation of a confidentiality
obligation; (iv) it is received or obtained, in good faith, by the Receiving Party from a Third
Party, without this constituting, in turn, the violation of a confidentiality obligation; (v) its
disclosure and / or release was required by the Receiving Party for application of the current
legislation, a firm administrative act, order from a judicial and / or competent government
authority with jurisdiction on the Party or its affiliates, or for norms of any Stock Exchange
where the shares of the Parties or related corporations are registered, as per the term and to the
extent so required.

The Receiving Party may disclose the Confidential Information to its directors, officials,
employees, agents, partners, representatives or associates, affiliates and subordinates (referred
to, in general, as Representatives).

If it is requested or demanded by a judicial or administrative authority that the Receiving Party,
by virtue of the Law, or judicial regulations or resolutions, discloses any part of the
information, said Receiving Party may request cooperation from the Disclosing Party and, if
convenient, it shall consult with it regarding the measures to be taken for maintaining
confidentiality.

CLAUSE
TWENTY-FIVE. — TERMINATION. The SELLER or
ECOPETROL S.A. may terminate this purchase — sale
agreement at any time, without being compelled to pay any indemnity for prejudice to the other
party, provided such decision is notified in writing to the other Party, at least thirty (30)
calendar days in advance, with respect to the effective date of contract termination.

In witness whereof, it is executed in Bogotá D.C., on the first (1st) day of the month
of December of the year 2006, in two identical copies.

	 	 	 
	THE SELLER

	 	ECOPETROL S.A.
	 
	 	 
	/s/ EDGAR LOUIS DYES

	 	/s/ CAMILO MARULANDA LOPEZ
	 
	 	 
	EDGAR LOUIS DYES

Legal Representative

	 	CAMILO MARULANDA LOPEZ
Vice-president of Supply and Marketing

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