Document:

exv10w78

Exhibit 10.78

AMENDMENT NO. 2 TO CREDIT AGREEMENT

     AMENDMENT NO. 2 dated as of June 22, 2010 (the “Amendment”) to the Credit, Security,
Guaranty and Pledge Agreement dated as of October 6, 2009 (as amended, supplemented or otherwise
modified, renewed or replaced from time to time, the “Credit Agreement”) among (i) LIONS
GATE MANDATE FINANCING VEHICLE INC., (ii) the BORROWERS REFERRED TO THEREIN, (iii) the GUARANTORS
referred to therein, (iv) the LENDERS referred to therein (each, a “Lender,” and
collectively, the “Lenders”), (v) JPMORGAN CHASE BANK, N.A., as Administrative Agent (in
such capacity, the “Administrative Agent”) and as Issuing Bank, (vi) UNION BANK, N.A., as
Co-Administrative Agent and (vii) WELLS FARGO BANK, NATIONAL ASSOCIATION, as Documentation Agent.

     The Borrowers have requested, and the Administrative Agent and the Required Lenders have
agreed, to amend the Credit Agreement as set forth herein.

     Therefore, the parties hereto hereby agree as follows:

     1. Defined Terms. All terms used but not otherwise defined herein have the
meanings assigned to them in the Credit Agreement.

     2. Amendments to Credit Agreement. Subject to the satisfaction of the
conditions precedent set forth in Section 3 below, the Credit Agreement is hereby amended
as of the Effective Date (as defined below) as follows:

          (a) The definition of “Change in Management” in Article 1 of the Credit Agreement is
hereby amended by deleting the words “any three of (i) Jon Feltheimer, (ii) Michael Burns, (iii)
Joseph Drake or (iv) Steven Beeks” in the first two lines thereof and replacing them with the
following:

          (b) “either (i) both Jon Feltheimer and Michael Burns or (ii) all four of Joseph
Drake, Steven Beeks, Kevin Beggs and Michael Paseornek”.

     3. Conditions to Effectiveness. The provisions of Section 2 of
this Amendment shall not become effective until the date upon which all of the following conditions
precedent have been satisfied (such date, the “Effective Date”):

          (a) the Administrative Agent shall have received counterparts of this Amendment
which, when taken together, bear the signatures of each of the Borrowers, each of the Guarantors
and each of the Required Lenders;

          (b) the payment of all fees and expenses (including, without limitation, fees and
disbursements of counsel and consultants retained by the Administrative Agent) due and payable by
any Credit Party to the Administrative Agent and/or the Lenders pursuant to the Credit Agreement or
any other Fundamental Document; and

          (c) all legal matters incident to this Amendment shall be satisfactory to Morgan,
Lewis & Bockius LLP, counsel for the Administrative Agent.

 

 

     4. Representations and Warranties. Each Credit Party represents and
warrants that:

          (c) after giving effect to this Amendment, the representations and warranties contained in the
Credit Agreement are true and correct in all material respects on and as of the date hereof as if
such representations and warranties had been made on and as of the date hereof (except to the
extent that any such representations and warranties specifically relate to an earlier date); and

          (d) after giving effect to this Amendment, no Default or Event of Default will have occurred
and be continuing on and as of the date hereof.

     5. Fundamental Document. This Amendment is designated a Fundamental
Document by the Administrative Agent.

     6. Full Force and Effect. Except as expressly amended hereby, the Credit
Agreement (as previously amended) shall continue in full force and effect in accordance with the
provisions thereof on the date hereof. As used in the Credit Agreement, the terms “Agreement,”
“this Agreement,” “this Credit Agreement,” “herein,” “hereafter,” “hereto,” “hereof” and words of
similar import shall mean, unless the context otherwise requires, the Credit Agreement as amended
by this Amendment. This Amendment shall not be construed as extending to any other matter, similar
or dissimilar, or entitling the Credit Parties to any future amendments regarding similar matters
or otherwise.

     7. APPLICABLE LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     8. Counterparts. This Amendment may be executed in one or more
counterparts, each of which shall constitute an original, but all of which when taken together
shall constitute but one instrument.

     9. Expenses. The Borrowers agree to pay all out-of-pocket expenses
incurred by the Administrative Agent and Co-Administrative Agent in connection with the
preparation, enforcement, waiver or modification, execution and delivery of this Amendment,
including, but not limited to, the reasonable fees and disbursements of counsel for the
Administrative Agent and the Co-Administrative Agent.

     10. Headings. The headings of this Amendment are for the purposes of
reference only and shall not affect the construction of this Amendment.

[Signatures Begin on Next Page]

2

 

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

	 	 	 	 	 
	 	PARENT:

LIONS GATE MANDATE FINANCING VEHICLE INC.

 	 
	 	By:  	/s/ Wayne Levin
 	 
	 	 	Name:  	Wayne Levin 	 
	 	 	Title:  	 	 
	 
	 	BORROWERS

NEXT PRODUCTION INC.

 	 
	 	By:  	/s/ Wayne Levin
 	 
	 	 	Name:  	Wayne Levin 	 
	 	 	Title:  	 	 
	 
	 	IWC PRODUCTIONS, LLC

 	 
	 	By:  	/s/ Wayne Levin
 	 
	 	 	Name:  	Wayne Levin 	 
	 	 	Title:  	 	 
	 

[Signature Page to Amendment No. 2]

 

 

	 	 	 	 	 
	 	LENDERS:

JPMORGAN CHASE BANK, N.A.

individually and as Administrative Agent

 	 
	 	By:  	/s/ Kin W. Cheng
 	 
	 	 	Name:  	Kin W. Cheng 	 
	 	 	Title:  	Vice President 	 
	 
	 	UNION BANK, N.A.

individually and as Co-Administrative Agent

 	 
	 	By:  	/s/ Brian Stearns
 	 
	 	 	Name:  	Brian Stearns 	 
	 	 	Title:  	Vice President 	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION

individually and as Documentation Agent

 	 
	 	By:  	/s/ Christine Ball
 	 
	 	 	Name:  	Christine Ball 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	COMERICA BANK

 	 
	 	By:  	/s/ Adam Korn
 	 
	 	 	Name:  	Adam Korn 	 
	 	 	Title:  	Vice President 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Jodi Chong
 	 
	 	 	Name:  	Jodi Chong 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	CITY NATIONAL BANK

 	 
	 	By:  	/s/ Norman B. Starr
 	 
	 	 	Name:  	Norman B. Starr 	 
	 	 	Title:  	Senior Vice President 	 
	 

[Signature Page to Amendment No. 2]exv10w1

Exhibit 10.1

EXCHANGE AGREEMENT

by and among

QUIKSILVER, INC.,

QUIKSILVER AMERICAS, INC.,

MOUNTAIN & WAVE S.À R.L.,

THE LENDERS PARTY HERETO

and

RHÔNE GROUP L.L.C.

Dated as of June 24, 2010

 

 

 

    TABLE
    OF CONTENT

 

	 	 	 	 	 	 	 	 	 	 	 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
    Page
	
 

	 

	
 
	
    1.
	
 
	
 
	
    DEFINITIONS.
	
 
	
 
	
    A-1
	
 

	
 
	
    2.
	
 
	
 
	
    THE EXCHANGES
	
 
	
 
	
    A-4
	
 

	
 
	
 
	
 
	
 
	
    2.1
	
 
	
    The First Exchange
	
 
	
 
	
    A-4
	
 

	
 
	
 
	
 
	
 
	
    2.2
	
 
	
    The Standby Exchange
	
 
	
 
	
    A-4
	
 

	
 
	
 
	
 
	
 
	
    2.3
	
 
	
    Closing Dates of the Exchanges
	
 
	
 
	
    A-5
	
 

	
 
	
 
	
 
	
 
	
    2.4
	
 
	
    Exchange Fee
	
 
	
 
	
    A-5
	
 

	
 
	
 
	
 
	
 
	
    2.5
	
 
	
    Delivery of the Common Stock
	
 
	
 
	
    A-5
	
 

	
 
	
 
	
 
	
 
	
    2.6
	
 
	
    Delivery of the Stockholders Agreement
	
 
	
 
	
    A-5
	
 

	
 
	
 
	
 
	
 
	
    2.7
	
 
	
    Replacement Notes
	
 
	
 
	
    A-5
	
 

	
 
	
    3.
	
 
	
 
	
    STOCKHOLDER APPROVAL.
	
 
	
 
	
    A-6
	
 

	
 
	
 
	
 
	
 
	
    3.1
	
 
	
    Stockholders’ Meeting
	
 
	
 
	
    A-6
	
 

	
 
	
 
	
 
	
 
	
    3.2
	
 
	
    Preparation of Proxy Statement and Board and Stockholder
    Action
	
 
	
 
	
    A-6
	
 

	
 
	
    4.
	
 
	
 
	
    REPRESENTATIONS AND WARRANTIES.
	
 
	
 
	
    A-7
	
 

	
 
	
 
	
 
	
 
	
    4.1
	
 
	
    Representations and Warranties of the Company and the
    Borrowers
	
 
	
 
	
    A-7
	
 

	
 
	
 
	
 
	
 
	
    4.2
	
 
	
    Representations and Warranties of Rhône and the
    Lenders
	
 
	
 
	
    A-9
	
 

	
 
	
    5.
	
 
	
 
	
    COVENANTS
	
 
	
 
	
    A-10
	
 

	
 
	
 
	
 
	
 
	
    5.1
	
 
	
    Modification of Credit Agreements
	
 
	
 
	
    A-10
	
 

	
 
	
 
	
 
	
 
	
    5.2
	
 
	
    Beneficial Ownership
	
 
	
 
	
    A-10
	
 

	
 
	
 
	
 
	
 
	
    5.3
	
 
	
    Preemptive Rights
	
 
	
 
	
    A-10
	
 

	
 
	
    6.
	
 
	
 
	
    CONDITIONS PRECEDENT TO THE EXCHANGES.
	
 
	
 
	
    A-11
	
 

	
 
	
 
	
 
	
 
	
    6.1
	
 
	
    Conditions Precedent to each of the First Exchange and the
    Standby Exchange
	
 
	
 
	
    A-11
	
 

	
 
	
 
	
 
	
 
	
    6.2
	
 
	
    Conditions Precedent to the Standby Exchange
	
 
	
 
	
    A-13
	
 

	
 
	
    7.
	
 
	
 
	
    TERMINATION; FEES AND EXPENSES.
	
 
	
 
	
    A-13
	
 

	
 
	
 
	
 
	
 
	
    7.1
	
 
	
    Termination
	
 
	
 
	
    A-13
	
 

	
 
	
 
	
 
	
 
	
    7.2
	
 
	
    Termination Fee
	
 
	
 
	
    A-13
	
 

	
 
	
 
	
 
	
 
	
    7.3
	
 
	
    Expenses
	
 
	
 
	
    A-13
	
 

	
 
	
    8.
	
 
	
 
	
    MISCELLANEOUS
	
 
	
 
	
    A-14
	
 

	
 
	
 
	
 
	
 
	
    8.1
	
 
	
    Payment of Taxes
	
 
	
 
	
    A-14
	
 

	
 
	
 
	
 
	
 
	
    8.2
	
 
	
    Notices
	
 
	
 
	
    A-14
	
 

	
 
	
 
	
 
	
 
	
    8.3
	
 
	
    Agent
	
 
	
 
	
    A-14
	
 

	
 
	
 
	
 
	
 
	
    8.4
	
 
	
    Governing Law
	
 
	
 
	
    A-14
	
 

	
 
	
 
	
 
	
 
	
    8.5
	
 
	
    Submission to Jurisdiction
	
 
	
 
	
    A-15
	
 

	
 
	
 
	
 
	
 
	
    8.6
	
 
	
    Service of Process
	
 
	
 
	
    A-15
	
 

	
 
	
 
	
 
	
 
	
    8.7
	
 
	
    Waiver of Venue
	
 
	
 
	
    A-15
	
 

	
 
	
 
	
 
	
 
	
    8.8
	
 
	
    Persons Benefiting
	
 
	
 
	
    A-15
	
 

	
 
	
 
	
 
	
 
	
    8.9
	
 
	
    Indemnification
	
 
	
 
	
    A-15
	
 

	
 
	
 
	
 
	
 
	
    8.10
	
 
	
    Counterparts
	
 
	
 
	
    A-16
	
 

	
 
	
 
	
 
	
 
	
    8.11
	
 
	
    Further Assurances
	
 
	
 
	
    A-16
	
 

	
 
	
 
	
 
	
 
	
    8.12
	
 
	
    Successors and Assigns
	
 
	
 
	
    A-16
	
 

	
 
	
 
	
 
	
 
	
    8.13
	
 
	
    Survival
	
 
	
 
	
    A-16
	
 

	
 
	
 
	
 
	
 
	
    8.14
	
 
	
    Publicity
	
 
	
 
	
    A-16
	
 

	
 
	
 
	
 
	
 
	
    8.15
	
 
	
    Exchange Rate
	
 
	
 
	
    A-16
	
 

	
 
	
 
	
 
	
 
	
    8.16
	
 
	
    Severability
	
 
	
 
	
    A-16
	
 

	
 
	
 
	
 
	
 
	
    8.17
	
 
	
    Headings
	
 
	
 
	
    A-16
	
 

	
 
	
 
	
 
	
 
	
    8.18
	
 
	
    Entire Agreement
	
 
	
 
	
    A-16
	
 

	
 
	
 
	
 
	
 
	
    8.19
	
 
	
    Limitation of Liability
	
 
	
 
	
    A-16
	
 

 

	 	 	 	 	 
	

    SIGNATURES

	
 
	
 
	
 
	
 

	

    Schedules and Exhibits

	
 
	
 
	
 
	
 

	

    Schedule 2.1(a)

	
 
	
 
	
    A-19
	
 

	

    Schedule 4.2(g)

	
 
	
 
	
    A-20
	
 

	

    EXHIBIT 2.6 — Form of Stockholders Agreement

	
 
	
 
	
 
	
 

    

    A-i

 

    EXCHANGE
    AGREEMENT

 

    This EXCHANGE AGREEMENT (the “Agreement”) is
    entered into as of June 24, 2010, among Rhône Group
    L.L.C. (“Rhône”), Romolo Holdings C.V.,
    Triton SPV L.P., Triton Onshore SPV L.P., Triton Offshore SPV
    L.P. and Triton Coinvestment SPV L.P. (each, a
    “Lender”, and collectively, the
    “Lenders”); Quiksilver, Inc. (the
    “Company”); Quiksilver Americas, Inc. (the
    “US Borrower”); and Mountain & Wave
    S.à r.l. (the “European Borrower” and,
    together with the US Borrower, the “Borrowers”).

 

    WHEREAS, the Lenders have made term loans to the US Borrower
    with an original principal amount of $125,000,000 (the
    “US Term Loans”) pursuant to the Credit
    Agreement, dated as of July 31, 2009, among the Company,
    the US Borrower, Rhône, as administrative agent, and the
    Lenders (the “US Credit Agreement”);

 

    WHEREAS, the Lenders have made term loans to the European
    Borrower with an original principal amount of €20,000,000
    (the “European Term Loans” and, together with
    the US Term Loans, the “Term Loans”) pursuant
    to the Credit Agreement, dated as of July 31, 2009, among
    the Company, the European Borrower, Rhône, as
    administrative agent, and the Lenders (the “European
    Credit Agreement” and, together with the US Credit
    Agreement, the “Credit Agreements”);

 

    WHEREAS, the Company, the Borrowers, Rhône and the Lenders
    have entered into a letter agreement, dated as of June 14,
    2010 (the “Letter Agreement”), providing that,
    subject to satisfaction of the conditions set forth therein,
    (i) $75,000,000 principal amount of the Term Loans shall be
    exchanged for shares of Common Stock; (ii) up to the total
    remaining principal amount outstanding under the Term Loans may,
    at the option of the Borrowers, be exchanged for shares of
    Common Stock; (iii) the terms of the Credit Agreements
    shall be amended; and (iv) the Company, the Lenders and
    Rhône Capital III L.P. shall, at the closing of the
    transactions contemplated therein, enter into a stockholders
    agreement (the “Stockholders
    Agreement”); and

 

    WHEREAS, the Company, the Borrowers, Rhône and the Lenders
    have determined to enter into this Agreement to give effect to
    the terms of the Letter Agreement and to terminate the Letter
    Agreement.

 

    NOW THEREFORE, in consideration of the mutual covenants and
    conditions set forth herein, the sufficiency of which is hereby
    acknowledged, the parties hereby agree as follows:

 

		
	
    1.  
	
    DEFINITIONS.

 

    As used in this Agreement, the following terms shall have the
    following meanings:

 

    “Affiliate” means with respect to any
    Person, a Person that directly or indirectly controls, is
    controlled by or is under direct or indirect common control with
    such Person. For purposes of this definition,
    “control” when used with respect to any 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.

 

    “Agreement” has the meaning set forth in
    the preamble to this Agreement.

 

    “Board” means the Board of Directors of
    the Company.

 

    “Borrowers” has the meaning set forth in
    the preamble to this Agreement and their successors and assigns.

 

    “Business Day” means any day that is not
    a day on which banking institutions are authorized or required
    to be closed in the State of New York.

 

    “Bylaws” means the Company’s
    Amended and Restated Bylaws, as amended from time to time.

 

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

    

    A-1

 

    “Certificate of Incorporation” means the
    Company’s Restated Certificate of Incorporation, as amended
    from time to time.

 

    “Common Stock” means the common stock,
    par value $0.01 per share, of the Company.

 

    “Common Stock Equivalent” means any
    warrant, right or option to acquire any shares of Common Stock
    or any security convertible or exchangeable into shares of
    Common Stock.

 

    “Company” has the meaning set forth in
    the preamble to this Agreement and shall be deemed to include
    its successors and assigns.

 

    “Credit Agreements” has the meaning set
    forth in the recitals to this Agreement.

 

    “DGCL” means the Delaware General
    Corporation Law.

 

    “Dollars” and
    “$” mean lawful money of the United
    States.

 

    “European Borrower” has the meaning set
    forth in the recitals to this Agreement and its successors and
    assigns.

 

    “European Credit Agreement” has the
    meaning set forth in the recitals to this Agreement.

 

    “European Term Loans” has the meaning
    set forth in the recitals to this Agreement.

 

    “Euros” and
    “€” mean the single currency of the
    member states of the European Communities that adopt or have
    adopted the Euro as their lawful currency in accordance with the
    legislation of the European Union relating to European Monetary
    Union.

 

    “Exchanges” means the First Exchange and
    the Standby Exchange.

 

    “Exchange Act” means the Securities
    Exchange Act of 1934, as amended.

 

    “Exchange Fee” has the meaning set forth
    in Section 2.4.

 

    “Exchange Ratio” means $4.50 per share
    of Common Stock.

 

    “First Exchange” has the meaning set
    forth in Section 2.1(a).

 

    “First Exchange Closing Date” has the
    meaning set forth in Section 2.3(a).

 

    “HSR Act” means the
    Hart-Scott-Rodino
    Antitrust Improvements Act of 1976, as amended, and the rules
    and regulations promulgated thereunder.

 

    “Lenders” has the meaning set forth in
    the preamble to this Agreement.

 

    “Letter Agreement” has the meaning set
    forth in the recitals to this Agreement.

 

    “Material Adverse Effect” means
    (a) a material adverse change in, or a material adverse
    effect upon, the operations, business, properties, liabilities,
    or condition (financial or otherwise) of the Company and the
    Borrowers taken as a whole; (b) a material impairment of
    the ability of the Company or either Borrower to perform its
    obligations under this Agreement or, solely with respect to the
    Company, the Stockholders Agreement; or (c) a material
    impairment of the rights and remedies of Rhône, the Lenders
    and/or
    Rhône Capital III L.P., as applicable, under the
    Credit Agreements (for so long as the Credit Agreements will
    remain outstanding after giving effect to the Exchanges), the
    Warrant Agreement, this Agreement or the Stockholders Agreement.

 

    “Note” means a promissory note made by
    either of the Borrowers in favor of any Lender pursuant to the
    US Credit Agreement
    and/or the
    European Credit Agreement.

 

    “NYSE” means the New York Stock Exchange.

 

    “Permitted Transaction” means any
    acquisition of any Common Stock or Common Stock Equivalent
    (i) by Rhône or any of its Affiliates (including, for
    the avoidance of doubt, any partner or employee of

    

    A-2

 

    Rhône then serving on the Board) directly from the Company
    or (ii) made pursuant to a tender or exchange offer made to
    all stockholders of the Company.

 

    “Person” means any individual,
    corporation, partnership, joint venture, association, joint
    stock company, trust, unincorporated organization or government
    or any agency or political subdivision thereof.

 

    “Preferred Stock” means the preferred
    stock, par value $0.01 per share, of the Company.

 

    “Proxy Statement” means the proxy
    statement, together with any amendments or supplements thereto
    and any other related proxy materials, including, without
    limitation, any preliminary proxy materials, relating to the
    Stockholder Approval of the Exchanges.

 

    “Rhône” has the meaning set forth
    in the preamble to this Agreement.

 

    “Rhône Directors” means any
    director of the Board that is appointed pursuant to
    Section 9.4 of the Warrant Agreement or Section 6.2 of
    the Stockholders Agreement.

 

    “Rhône Material Adverse Effect”
    means (a) a material adverse change in, or a material
    adverse effect upon, the operations, business, properties,
    liabilities, or condition (financial or otherwise) of Rhône
    taken as a whole; (b) a material impairment of the ability
    of Rhône or Rhône Capital III L.P., as
    applicable, to perform its obligations under this Agreement or
    the Stockholders Agreement; or (c) a material impairment of
    the rights and remedies of the Company or the Borrowers under
    the Credit Agreements (for so long as the Credit Agreements will
    remain outstanding after giving effect to the Exchanges), the
    Warrant Agreement, this Agreement or the Stockholders Agreement.

 

    “SEC” means the United States Securities
    and Exchange Commission.

 

    “Securities Act” means the Securities
    Act of 1933, as amended.

 

    “Series A Preferred Stock” means
    the convertible non-voting preferred stock, par value $0.01 per
    share, of the Company on the terms set forth in Exhibit C
    of the Warrant Agreement.

 

    “Special Meeting” has the meaning set
    forth in Section 3.1(a).

 

    “Standby Exchange” has the meaning set
    forth in Section 2.2(a).

 

    “Standby Exchange Closing Date” has the
    meaning set forth in Section 2.3(b).

 

    “Standby Exchange Exercise Date” has the
    meaning set forth in Section 2.2(a).

 

    “Standby Shares” has the meaning set
    forth in Section 2.2(a).

 

    “Stockholder Approval” has the meaning
    set forth in Section 3.1(a).

 

    “Stockholders Agreement” has the meaning
    set forth in the recitals to this Agreement.

 

    “Termination Fee” has the meaning set
    forth in Section 7.2.

 

    “Term Loans” has the meaning set forth
    in the recitals to this Agreement.

 

    “US Borrower” has the meaning set forth
    in the recitals to this Agreement.

 

    “US Credit Agreement” has the meaning
    set forth in the recitals to this Agreement.

 

    “US Term Loans” has the meaning set
    forth in the recitals to this Agreement.

 

    “Voting Stock” means all classes of
    Capital Stock of the Company then outstanding and normally
    entitled to vote in the election of directors.

 

    “Warrant Agreement” means the Warrant
    and Registration Rights Agreement, dated as of July 31,
    2009, by and among the Company, Rhône Capital III L.P.
    and the initial Warrant holders party thereto.

 

    “Warrants” means the warrants issued by
    the Company from time to time pursuant to the Warrant Agreement.

    

    A-3

 

		
	
    2.  
	
    THE
    EXCHANGES.

 

    2.1 The First Exchange.

 

    (a) Subject to the terms and conditions hereof, on the
    First Exchange Closing Date, the Company shall issue to the
    Lenders the number of shares of Common Stock set forth opposite
    such Lender’s name on Schedule 2.1(a) attached hereto
    in redemption and prepayment of $75,000,000 of the aggregate
    principal amount of the Term Loans (such redemption and
    prepayment to be applied on a pro rata basis against the
    principal amounts outstanding under the US Term Loans and the
    European Term Loans and such issuance and redemption and
    prepayment being referred to herein as the “First
    Exchange”), and the principal amounts of the US Terms
    Loans and the European Term Loans shall be, without any further
    action, permanently reduced by such amounts. The reduction of
    the principal amounts outstanding under the Term Loans upon
    completion of the First Exchange shall be permanent and will
    constitute a “prepayment” for purposes of
    Section 2.05 of each of the US Credit Agreement and the
    European Credit Agreement, and at the closing of the First
    Exchange, the US Borrower shall make payment of all amounts due
    under Section 2.09(a) of the US Credit Agreement in
    connection with such prepayment. Each Lender hereby
    (i) waives the provisions of Section 2.05(a)(ii) of
    each of the US Credit Agreement and the European Credit
    Agreement in connection with the prepayments of the Terms Loans
    described in this Section 2.1(a), and (ii) consents to
    any Investment (as defined in the applicable Credit Agreement)
    deemed to be made by the Company or any of its subsidiaries
    pursuant to or otherwise resulting from the First Exchange.

 

    (b) Upon the closing of the First Exchange, the Company
    shall make a payment to the Lenders for any interest accrued
    (which payment may be made in cash or as a PIK Amount (as
    defined in the applicable Credit Agreement) to the extent
    permitted under the applicable Credit Agreement) on the
    principal amounts of the Term Loans that are subject to the
    First Exchange.

 

    2.2 The Standby Exchange.

 

    (a) The Borrowers shall have the right, exercisable in the
    sole discretion of the Borrowers, by delivering notice in
    accordance with Section 2.2(b) hereof on or prior to
    August 23, 2010 (the “Standby Exchange Exercise
    Date”), to require the Lenders to exchange, on a pro
    rata basis calculated based on each Lender’s interest in
    the Term Loans, all or a portion of the remaining principal
    amount of the Term Loans for a number of shares of Common Stock
    issued by the Company equal to the portion of such remaining
    principal amount of the Term Loans that the Borrowers elect to
    exchange pursuant to this Section 2.2(a) divided by
    the Exchange Ratio (subject to the following proviso, the
    “Standby Shares”) (such issuance and exchange
    and related redemption and prepayment of the Term Loans are
    referred to herein as the “Standby Exchange”);
    provided that the Borrowers may only exercise their
    option under this Section 2.2(a) to such extent that the
    number of shares of Common Stock issued to the Lenders in the
    Standby Exchange (taking into account all shares of Common Stock
    and Warrants then held by the Lenders and their Affiliates)
    shall not result in a “change in control”,
    “change of control” or similar concept occurring under
    any indenture, loan agreement, mortgage, deed of trust, contract
    or other agreement or instrument to which the Company or any of
    its subsidiaries is a party or by which the Company or any of
    its subsidiaries or any of their properties may be bound.

 

    (b) In the event the Borrowers exercise their option with
    respect to the Standby Exchange, the Borrowers shall provide to
    the Lenders an irrevocable, written notice, in accordance with
    Section 8.2, of such election, and such notice shall be
    delivered to the Lenders no later than 5:00 pm, New York time,
    on the Standby Exchange Exercise Date and shall specify the
    aggregate principal amount of Term Loans subject to the Standby
    Exchange. The Borrowers may provide notice under this
    Section 2.2(b) one time only.

 

    (c) On the Standby Exchange Closing Date, the Company shall
    issue to the Lenders, on a pro rata basis consistent with each
    Lender’s interest in the Term Loans the Standby Shares in
    redemption and prepayment of an aggregate of such principal
    amount, which shall be applied on a pro rata basis against the
    principal amounts outstanding under the US Term Loans and the
    European Term Loans, and the principal amounts of the US Term
    Loans and the European Term Loans shall be, without any further
    action, permanently reduced by such amounts. The reduction of
    the principal amounts outstanding under the Term Loans upon
    completion of the

    

    A-4

 

    Standby Exchange will constitute a “prepayment” for
    purposes of Section 2.05 of each of the US Credit Agreement
    and the European Credit Agreement, and at the closing of the
    Standby Exchange, the US Borrower shall make payment of all
    amounts due under Section 2.09 of the US Credit Agreement
    in connection with such prepayment (including, without
    limitation, any obligations under Section 2.09(b) of the US
    Credit Agreement arising from the full repayment of the Term
    Loans, if applicable). Each Lender hereby (i) waives the
    provisions of Section 2.05(a)(ii) of each of the US Credit
    Agreement and the European Credit Agreement in connection with
    the prepayments of the Term Loans described in this
    Section 2.2(c), and (ii) consents to any Investment
    (as defined in the applicable Credit Agreement) deemed to be
    made by the Company or any of its subsidiaries pursuant to or
    otherwise resulting from the Standby Exchange.

 

    (d) Upon the closing of the Standby Exchange, the Company
    shall make a payment to the Lenders for any interest accrued
    (which payment may be in cash or as a PIK Amount (as defined in
    the applicable Credit Agreement) to the extent permitted under
    the applicable Credit Agreement) on the principal amounts of the
    Term Loans that are subject to the Standby Exchange.

 

    2.3 Closing Dates of the Exchanges.

 

    (a) The closing of the First Exchange shall occur on the
    later of (i) August 1, 2010 and (ii) one Business
    Day following satisfaction of the conditions precedent to
    closing of the First Exchange set forth under Section 6.1
    (the “First Exchange Closing Date”).

 

    (b) The closing of the Standby Exchange shall occur on
    (i) the latest of (A) August 1, 2010,
    (B) one Business Day following satisfaction of the
    conditions to closing of the Standby Exchange set forth under
    Sections 6.1 and 6.2 and (C) five Business Days
    following delivery of a notice by the Borrowers to the Lenders,
    in accordance with Section 2.2(a), that the Borrowers are
    exercising their option with respect to the Standby Exchange or
    (ii) such other date as mutually agreed by the Lenders and
    the Borrowers (the “Standby Exchange Closing
    Date”), it being agreed that, if feasible, the First
    Exchange and the Standby Exchange will close simultaneously.

 

    2.4 Exchange Fee.  Upon the closing
    of each of the First Exchange and the Standby Exchange, the
    Company shall pay to Rhône, as agent for the Lenders, on
    the First Exchange Closing Date and the Standby Exchange Closing
    Date, each as applicable, an exchange fee equal to 4.75% of the
    value of the principal amount of the Term Loans subject to such
    Exchange (an “Exchange Fee”). For the avoidance
    of doubt, the Company’s payment of the Exchange Fees shall
    not relieve the obligations of the US Borrower under
    Sections 2.05(a), 2.09(a) and 2.09(b) of the US Credit
    Agreement to pay all fees due to the Lenders in connection with
    the partial or full prepayment of the principal amounts of the
    US Term Loans.

 

    2.5 Delivery of the Common
    Stock.  At the closing of each of the First
    Exchange and the Standby Exchange, the Company shall deliver, or
    cause to be delivered, to the Lenders certificates (bearing the
    legend substantially in the form set forth in
    Section 2.2(e) of the Stockholders Agreement) representing
    the Common Stock issued in such Exchange.

 

    2.6 Delivery of the Stockholders
    Agreement.  At the closing of the First
    Exchange, the Company, the Lenders and Rhône
    Capital III L.P. shall execute and deliver the Stockholders
    Agreement substantially in the form set forth in
    Exhibit 2.6.

 

    2.7 Replacement Notes.  At the
    closing of each of the First Exchange and the Standby Exchange,
    to the extent that as of such closing the Term Loans shall not
    have been repaid in full, at the request of any applicable
    Lender, each applicable Borrower shall replace any Note
    previously issued to a Lender pursuant to either Credit
    Agreement with a new Note, substantially in the form of such
    previously issued Note, which shall evidence such Lender’s
    outstanding loans under the applicable Credit Agreement after
    giving effect to such Exchange.

    

    A-5

 

		
	
    3.  
	
    STOCKHOLDER
    APPROVAL.

 

    3.1 Stockholders’ Meeting.

 

    (a) As soon as practicable, but no later than 90 days
    after the date hereof, the Company shall hold a special meeting
    of its stockholders (the “Special Meeting”) for
    the purpose of obtaining stockholder approval of the Exchanges
    (the “Stockholder Approval”) in accordance with
    the stockholder approval requirements set forth in
    Section 312.03 of the NYSE Listed Company Manual.

 

    (b) The Company shall use its reasonable best efforts to
    (i) solicit from its stockholders proxies in favor of the
    approval of the Exchanges and (ii) take any and all other
    actions reasonably necessary or advisable to secure the
    affirmative vote of its stockholders required by the DGCL, the
    Certificate of Incorporation, the Bylaws, this Agreement, the
    Stockholders Agreement and the rules and regulations of the
    NYSE, to obtain the Stockholder Approval.

 

    (c) Nothing in this Section 3.1 shall prevent the
    Board from acting in accordance with its fiduciary duties or
    applicable law or from acting in good faith in accordance with
    the Certificate of Incorporation and the Bylaws, while giving
    due consideration to the intent of this Agreement.

 

    3.2 Preparation of Proxy Statement and Board and
    Stockholder Action.

 

    (a) The Company shall use its reasonable best efforts to,
    promptly after the date hereof, in cooperation with Rhône
    and its advisors, prepare and file with the SEC the Proxy
    Statement. The Proxy Statement shall comply as to form and
    substance in all material respects with the applicable
    provisions of the Exchange Act. The Company shall use its
    reasonable best efforts to respond as promptly as reasonably
    practicable to any comments of the SEC with respect to the Proxy
    Statement and to cause the definitive Proxy Statement to be
    filed with the SEC and to be mailed to its stockholders as
    promptly as reasonably practicable following the date of this
    Agreement or, if applicable, following confirmation by the SEC
    or its staff that it has no further comments on the Proxy
    Statement. The Company shall promptly notify Rhône upon the
    receipt of any written or oral comments from the SEC or its
    staff or any written or oral request from the SEC or its staff
    for amendments or supplements to the Proxy Statement and shall
    provide Rhône with copies of all correspondence between the
    Company and its representatives, on the one hand, and the SEC
    and its staff, on the other hand, with respect thereto. Prior to
    filing or mailing the Proxy Statement (or any amendment or
    supplement thereto) or responding to any comments of the SEC
    with respect thereto (orally or in writing), the Company shall
    (i) provide Rhône and its counsel an opportunity to
    review and comment on such document or response and
    (ii) give reasonable consideration to all comments proposed
    by Rhône or its counsel.

 

    (b) The Company shall use its reasonable best efforts to
    promptly and duly call, give notice of, convene and hold, the
    Special Meeting and take all other necessary actions so that, as
    promptly as reasonably practicable following the mailing of the
    Proxy Statement, the Special Meeting for the purpose of
    obtaining the Stockholder Approval is held. Subject to
    Section 3.1(c), the Company shall include in the Proxy
    Statement the unanimous recommendation of the Board (with the
    Rhône Directors taking no part in such recommendation) that
    the stockholders of the Company approve the issuance and sale of
    the shares of Common Stock in the Exchanges and vote in favor of
    such issuance.

 

    (c) The information supplied by the Company for inclusion
    in the Proxy Statement shall not, at (i) the time the Proxy
    Statement (or any amendment thereof or supplement thereto) is
    first mailed to the stockholders and (ii) the time of the
    Special Meeting, contain any untrue statement of a material fact
    or fail to state any material fact required to be stated therein
    or necessary in order to make the statements therein, in light
    of the circumstances under which they were made, not misleading.
    If, at any time prior to the Special Meeting, any event or
    circumstance relating to the Company, or its officers or
    directors, should be discovered by the Company which should be
    set forth in an amendment or a supplement to the Proxy
    Statement, the Company shall promptly inform Rhône.

    

    A-6

 

		
	
    4.  
	
    REPRESENTATIONS
    AND WARRANTIES.

 

    4.1 Representations and Warranties of the Company and
    the Borrowers.  The Company and the Borrowers,
    jointly and severally, represent and warrant to Rhône and
    each of the Lenders that:

 

    (a) Existence, Power and
    Ownership.  The Company is a corporation duly
    organized, validly existing and in good standing under the laws
    of the State of Delaware. Each of the Borrowers is a corporation
    or a private limited liability company, duly organized or
    formed, validly existing, and, where applicable, in good
    standing under the laws of the jurisdiction of its incorporation
    or organization.

 

    (b) Authorization.  The Company and
    each of the Borrowers has the corporate or other requisite power
    and authority to enter into this Agreement and to perform its
    obligations under, and consummate the transactions contemplated
    by, this Agreement and, solely with respect to the Company, the
    Stockholders Agreement, and has by proper action duly authorized
    the execution and delivery of this Agreement and, solely with
    respect to the Company, the Stockholders Agreement.

 

    (c) No Conflicts.  None of the
    execution and delivery of this Agreement by the Company or the
    Borrowers, or, solely with respect to the Company, the
    Stockholders Agreement by the Company, or the consummation of
    the transactions contemplated herein or therein or the
    performance of and compliance with the terms and provisions
    hereof or thereof will: (i) violate or conflict with any
    provision of the Certificate of Incorporation or the Bylaws, or
    any of the Borrowers’ certificate of incorporation, bylaws
    or other constituent documents; (ii) violate any law,
    regulation, order, writ, judgment, injunction, decree or permit
    applicable to the Company or any of the Borrowers;
    (iii) violate or materially conflict with any contractual
    provisions of, or cause an event of default under, any material
    indenture, loan agreement, mortgage, deed of trust, contract or
    other agreement or instrument to which the Company or any of the
    Borrowers is a party or by which the Company or any of the
    Borrowers or any of their properties may be bound; or
    (iv) result in or require the creation of any lien,
    security interest or other charge or encumbrance upon or with
    respect to their properties, except in the case of clauses (ii),
    (iii) and (iv), for such violations, conflicts or defaults,
    or liens, security interests or encumbrances that would not,
    individually or in the aggregate, result in a Material Adverse
    Effect.

 

    (d) Consents.  Subject to
    (i) the filing of a notification under the HSR Act and the
    expiration or termination of the waiting period required
    thereunder, (ii) receipt of the Stockholder Approval,
    (iii) the accuracy of the representations and warranties of
    Rhône and the Lenders set forth in Section 4.2 hereof,
    (iv) the filing of a supplemental listing application in
    accordance with the NYSE Listed Company Manual and (v) any
    consents, approvals or authorizations already obtained on or
    prior to the date hereof and in full force and effect, no
    consent, approval, authorization or order of, or filing,
    registration or qualification with, any court or governmental
    authority or other Person is required in connection with the
    execution, delivery or performance of this Agreement.

 

    (e) Enforceable Obligations.  This
    Agreement has been, and at the closing of the First Exchange,
    the Stockholders Agreement will be, duly executed and delivered
    by the Company and, solely with respect to this Agreement, each
    of the Borrowers and assuming due authorization, execution and
    delivery hereof by Rhône and each of the Lenders, this
    Agreement constitutes and, at the closing of the First Exchange,
    the Stockholders Agreement will constitute, a legal, valid and
    binding obligation of the Company and, solely with respect to
    this Agreement, each of the Borrowers, enforceable in accordance
    with their terms subject, as to enforcement, to bankruptcy,
    insolvency, fraudulent transfer, reorganization, moratorium and
    similar laws of general applicability relating to or affecting
    creditors’ rights and to general equity principles.

 

    (f) Capitalization.  As of the date
    hereof, the Company’s authorized capital stock consists of
    (i) 285,000,000 shares of Common Stock of which
    132,596,464 shares of Common Stock were issued and
    outstanding and (ii) 5,000,000 shares of Preferred
    Stock, including, without limitation, 1,000,000 shares of
    Series A Preferred Stock of which no shares were issued and
    outstanding. As of the date hereof, 2,885,200 shares of
    Common Stock are held in treasury, 13,269,447 shares of
    Common Stock are reserved for issuance upon exercise of
    outstanding stock options, 1,693,227 shares of Common Stock

    

    A-7

 

    are reserved for future issuance under the Company’s equity
    compensation plans, and 25,653,831 shares of Common Stock
    are reserved for issuance upon exercise of the Warrants. As of
    the date hereof, 1,000,000 shares of Series A
    Preferred Stock are reserved for issuance upon exercise of the
    Warrants. There are no authorized or outstanding securities of
    the Company of any kind or class having power generally to vote
    in the election of directors other than the Common Stock. There
    are no other classes of capital stock of the Company authorized
    or outstanding. The outstanding shares of Common Stock are duly
    authorized, validly issued, fully paid and non-assessable. As of
    the date hereof, there are no preemptive rights (other than as
    set forth in Section 6.5 of the Stockholders Agreement and
    Section 5.6 of the Warrant Agreement) or other outstanding
    rights, options, warrants, conversion rights or agreements or
    commitments of any character relating to the Company’s
    authorized and issued, unissued or treasury shares of capital
    stock, and the Company has not issued any debt securities, other
    securities, rights or obligations that are currently outstanding
    and convertible into or exchangeable for, or giving any Person a
    right to subscribe for or acquire, capital stock of the Company.

 

    (g) Board Approvals.  (i) The
    Board has taken all corporate actions necessary under the
    Certificate of Incorporation, the Bylaws and the DGCL,
    including, without limitation, for purposes of Section 203
    thereunder, to approve the transactions contemplated herein, and
    (ii) other than the Rhône Directors who abstained from
    all discussion and voting with respect to the Exchanges, the
    Board resolved to recommend that stockholders of the Company
    approve the issuance and sale of the shares of Common Stock in
    the Exchanges and vote in favor of such issuance (the
    “Recommendation”), and no such approval or
    recommendation has been withdrawn; provided,
    however, that nothing in this Section 4.1(g) shall
    prevent the Board from acting in accordance with its fiduciary
    duties or applicable law or from acting in good faith in
    accordance with the Certificate of Incorporation and the Bylaws.

 

    (h) Issuance of Common Stock.  The
    Common Stock to be issued pursuant to the Exchanges against
    payment therefor, when so issued and delivered by the Company,
    will have been (i) duly and validly authorized, issued,
    fully paid and nonassessable, free and clear of any mortgage,
    pledge, lien, security interest, claim, voting agreement,
    conditional sale agreement, title retention agreement,
    restriction, option or encumbrance of any kind, character or
    description whatsoever, other than those contained in the
    Stockholders Agreement, and no Person (other than each of the
    Lenders) will have any preemptive right of subscription,
    purchase or share issuance in respect thereof, (ii) free of
    any restrictions on transfer other than restrictions on transfer
    under applicable federal and state securities laws and
    restrictions provided under Section 2.1 of the Stockholders
    Agreement, and (iii) assuming the accuracy of the
    representations and warranties of Rhône and the Lenders set
    forth in Section 4.2 hereof, issued in compliance with all
    applicable federal and state securities laws. The Company has
    duly authorized and reserved a sufficient number of shares of
    Common Stock for issuance upon the completion of the Exchanges
    pursuant to the terms of this Agreement.

 

    (i) State Takeover Statutes
    Inapplicable.  The Board has taken all
    corporate actions necessary so that Section 203 of the DGCL
    is inapplicable to the issuance of shares of Common Stock
    pursuant to the Exchanges. No other “fair price,”
    “moratorium,” “control share acquisition” or
    other similar anti-takeover statute or regulation is applicable
    to the issuance of shares of Common Stock pursuant to the
    Exchanges.

 

    (j) No Registration
    Requirement.  None of the Company or any of
    its subsidiaries has directly, or through any agent,
    (i) sold, offered for sale, solicited offers to buy or
    otherwise negotiated in respect of, any “security” (as
    defined in the Securities Act) that is or would be integrated
    with the issuance of the Common Stock pursuant to the Exchanges
    in a manner that would require the registration under the
    Securities Act of the Common Stock issued pursuant to the
    Exchanges or (ii) engaged in any form of general
    solicitation or general advertising (as those terms are used in
    Regulation D under the Securities Act) in connection with
    the offering of the Common Stock issued pursuant to the
    Exchanges or in any manner involving a public offering within
    the meaning of Section 4(2) of the Securities Act. Assuming
    the accuracy of the representations and warranties of Rhône
    and the Lenders in Section 4.2 hereof, it is not necessary
    in connection with the offer, sale and delivery of the Common
    Stock issuable in connection with the Exchanges in the manner
    contemplated herein to register any of such Common Stock under
    the Securities Act.

    

    A-8

 

    (k) Proxy Statement.  The Proxy
    Statement filed with the SEC shall not contain any untrue
    statement of a material fact or omit to state a material fact
    necessary in order to make the statements contained therein, in
    light of the circumstances under which they were made, not
    misleading at the time of (i) the mailing of the definitive
    Proxy Statement to the Company’s stockholders, and
    (ii) the Special Meeting. Notwithstanding the foregoing,
    the representation and warranty made in this Section 4.1(k)
    does not apply to statements made or statements omitted in
    reliance upon and in conformity with written information
    furnished to the Company by Rhône with respect to
    Rhône and the Lenders expressly for use in the Proxy
    Statement or any amendment thereof.

 

    4.2 Representations and Warranties of Rhône and
    the Lenders.  Rhône and each of the
    Lenders, severally and not jointly, hereby represents and
    warrants that:

 

    (a) Authorization.  Rhône and
    each of the Lenders has the corporate or limited liability
    company, as the case may be, power and authority to enter into
    this Agreement and the Stockholders Agreement and to perform its
    obligations under, and consummate the transactions contemplated
    by, this Agreement and the Stockholders Agreement and has by
    proper action duly authorized the execution and delivery of this
    Agreement and the Stockholders Agreement.

 

    (b) No Conflicts.  None of the
    execution and delivery of this Agreement and the Stockholders
    Agreement by Rhône and each of the Lenders and the
    consummation of the transactions contemplated herein or therein
    or the performance of and compliance with the terms and
    provisions hereof or thereof will: (i) violate or conflict
    with any provision of the constituent documents of Rhône or
    any of the Lenders; or (ii) violate any law, regulation,
    order, writ, judgment, injunction, decree or permit applicable
    to Rhône or any of the Lenders, except in the case of
    clause (ii), for such violations that would not, individually or
    in the aggregate, result in a Rhône Material Adverse
    Effect.

 

    (c) Enforceable Obligations.  This
    Agreement has been, and at the closing of the First Exchange,
    the Stockholders Agreement will be, duly executed and delivered
    by Rhône and each of the Lenders and assuming due
    authorization, execution and delivery hereof by the Company and
    each of the Borrowers, this Agreement constitutes, and, at the
    closing of the First Exchange, the Stockholders Agreement will
    constitute, a legal, valid and binding obligation of Rhône
    and each of the Lenders, enforceable in accordance with their
    terms subject, as to enforcement, to bankruptcy, insolvency,
    fraudulent transfer, reorganization, moratorium and similar laws
    of general applicability relating to or affecting
    creditors’ rights and to general equity principles.

 

    (d) Investment Intent.  Each Lender
    acknowledges that the Common Stock issued pursuant to the
    Exchanges will not have been, at the time of issuance,
    registered under the Securities Act or under any state
    securities laws. Each Lender (i) is acquiring the Common
    Stock issuable pursuant to the Exchanges pursuant to an
    exemption from registration under the Securities Act and solely
    for investment with no present intention to distribute any of
    the securities to any Person in violation of the Securities Act
    or any other applicable securities laws and (ii) will not
    sell or otherwise dispose of any of such Common Stock, except in
    compliance with the registration requirements or exemption
    provisions of the Securities Act and any other applicable
    securities laws.

 

    (e) Accredited Investor
    Status.  (i) Each Lender is an
    “accredited investor” as such term is defined in
    Rule 501(a) promulgated under the Securities Act whose
    knowledge and experience in financial and business matters are
    such that each Lender is capable of evaluating the merits and
    risks of its investment in the shares of Common Stock issuable
    pursuant to the Exchanges and (ii)(A) each Lender’s
    financial situation is such that each Lender can afford to bear
    the economic risk of holding the shares of Common Stock issuable
    pursuant to the Exchanges for an indefinite period of time,
    (B) each Lender can afford to suffer complete loss of its
    investment in shares of Common Stock issuable pursuant to the
    Exchanges, (C) the Company has made available to each
    Lender all documents and information that each Lender has
    requested relating to an investment in the Company, and
    (D) each Lender has had adequate opportunity to ask
    questions of, and receive answers from, the Company as well as
    the Company’s officers, employees, agents and other
    representatives concerning the Company’s business,
    operations, financial condition,

    

    A-9

 

    assets, liabilities and all other matters relevant to each
    Lender’s investment in the shares of Common Stock issuable
    pursuant to the Exchanges.

 

    (f) Restricted Securities.  Each of
    the Lenders agree that, at the time of issuance, the Common
    Stock issuable pursuant to the Exchanges will not be registered
    under the Securities Act or qualified under any state securities
    laws. Such securities are being issued on the basis that the
    Exchanges and the issuance by the Company in connection
    therewith of its Common Stock to the Lenders are exempt from
    registration under the Securities Act and from applicable state
    securities laws. Rhône and each of the Lenders agree that
    the reliance by the Company on such exemptions is predicated, in
    part, on the representations and warranties and other agreements
    of Rhône and each of the Lenders set forth in this
    Agreement. Rhône and each of the Lenders acknowledge and
    agree that each certificate representing the Common Stock issued
    in the Exchange shall bear the legend substantially in the form
    set forth in Section 2.2(e) of the Stockholders Agreement.

 

    (g) Beneficial Ownership.  As of
    the date hereof, Rhône and its Affiliates, including the
    Lenders, collectively, beneficially own, or have the right to
    acquire, whether such right is exercisable immediately or only
    after the passage of time, 25,758,831 shares of Common
    Stock.

 

    (h) Term Loans.  As of the date
    hereof, the principal amount of US Term Loans held by each
    Lender under the US Credit Agreement and the principal amount of
    European Term Loans held by each Lender under the European
    Credit Agreement are set forth on Schedule 4.2(g) attached
    hereto.

 

		
	
    5.  
	
    COVENANTS

 

    5.1 Modification of Credit
    Agreements.  In the event that immediately
    following the closing of the Exchanges, $30,000,000 or less in
    aggregate principal amount of the Term Loans remains
    outstanding, Section 7.14(a) of each of the US Credit
    Agreement and the European Credit Agreement shall be modified,
    automatically and without any further action, so as to replace
    the tables therein with the following:

 

	 	 	 	 	 
	
 
	
 
	
    Americas Consolidated

    

	

    Measurement Period Ending

	
 
	
    EBITDA

	 

	

    January 31, 2010

	
 
	
    $
	
    20,000,000
	
 

	

    April 30, 2010

	
 
	
    $
	
    20,000,000
	
 

	

    July 31, 2010

	
 
	
    $
	
    18,000,000
	
 

	

    October 31, 2010

	
 
	
    $
	
    24,000,000
	
 

	

    January 31, 2011

	
 
	
    $
	
    27,000,000
	
 

	

    April 30, 2011

	
 
	
    $
	
    30,000,000
	
 

	

    July 31, 2011

	
 
	
    $
	
    33,000,000
	
 

	

    October 31, 2011

	
 
	
    $
	
    39,000,000
	
 

	

    January 31, 2012

	
 
	
    $
	
    42,000,000
	
 

	

    April 30, 2012

	
 
	
    $
	
    45,000,000
	
 

	

    July 31, 2012

	
 
	
    $
	
    48,000,000
	
 

	

    October 31, 2012 and the last day of each Fiscal Quarter
    thereafter

	
 
	
    $
	
    51,000,000
	
 

 

    5.2 Beneficial Ownership.  Prior to
    the Standby Exchange Exercise Date, other than pursuant to a
    Permitted Transaction or as a result of the exercise of any
    preemptive rights under Section 5.6 of the Warrant
    Agreement, Rhône and its Affiliates, including the Lenders,
    shall not, increase their aggregate beneficial ownership of
    Common Stock (including, for the avoidance of doubt, any shares
    of Common Stock that Rhône and its Affiliates have the
    right to acquire) from the amount set forth in
    Section 4.2(g) hereof.

 

    5.3 Preemptive Rights.  The Lenders
    hereby waive their respective preemptive rights under
    Section 5.6 of the Warrant Agreement with respect to
    (i) the first underwritten public offering of Common Stock,
    if any, occurring prior to September 30, 2010 with gross
    proceeds of no more than $115 million and a public offering
    price of no less than $4.50 per share of Common Stock and
    (ii) the shares of Common Stock issuable in the Exchanges.
    In the event that the gross proceeds of such offering exceed
    $115 million
    and/or the
    public

    

    A-10

 

    offering price is less than $4.50 per share of Common Stock, the
    Lenders shall deliver notice to the Company within 10 days
    following the pricing date relating to such offering, of their
    intention to exercise their preemptive rights to purchase at the
    public offering price an additional number of shares of Common
    Stock to maintain their respective proportionate,
    as-if-exercised ownership interest in the Company based on the
    number of shares of Common Stock outstanding immediately prior
    to such offering. If the Lenders fail to deliver such notice
    within such
    10-day
    period, the Lenders shall be deemed to have waived their
    respective preemptive rights with respect to such offering. If
    the Lenders elect to exercise their preemptive rights with
    respect to such offering, the closing of the exercise of such
    preemptive rights shall occur as soon as reasonably practicable
    following the consummation of such offering or, if applicable,
    the expiration of the over-allotment option, subject to
    obtaining stockholder approval if required and regulatory
    approvals. For the avoidance of doubt, the preemptive rights set
    forth in Section 5.6 of the Warrant Agreement shall
    otherwise remain in effect.

 

    5.4 Term Loans.  Prior to the
    Standby Exchange Exercise Date, each Lender shall not sell,
    transfer, assign, encumber, grant a participation in or
    otherwise dispose of the Term Loans held by such Lender or their
    rights in respect thereof.

 

		
	
    6.  
	
    CONDITIONS
    PRECEDENT TO THE EXCHANGES.

 

    6.1 Conditions Precedent to each of the First
    Exchange and the Standby Exchange.

 

    (a) Notwithstanding any other provision of this Agreement,
    none of Rhône or any of the Lenders will be obligated to
    complete the First Exchange and, if applicable, the Standby
    Exchange, or fulfill any other obligations arising hereunder,
    unless the following conditions precedent have been (or,
    substantially contemporaneously with the applicable Exchange,
    will be) satisfied in full:

 

    (i) Receipt within ninety (90) days of the date of
    this Agreement of the Stockholder Approval;

 

    (ii) The Company and the Borrowers having performed in all
    material respects each of the obligations required by this
    Agreement to be performed or complied with by the Company at or
    prior to the closing date of such Exchange;

 

    (iii) If required, the filing of a notification under the
    HSR Act and the expiration or termination of the waiting period
    and any extension of such period under the HSR Act as applicable
    to the Exchanges;

 

    (iv) Execution and delivery by the Company of the
    Stockholders Agreement;

 

    (v) Delivery to the Lenders of the certificates
    representing the shares of Common Stock issuable pursuant to
    such Exchange;

 

    (vi) Delivery to Rhône and the Lenders of a legal
    opinion, dated as of the closing date of such Exchange, by
    Skadden, Arps, Slate, Meagher & Flom LLP, the
    Company’s outside legal counsel, such opinion, subject to
    customary limitations, exceptions, assumptions and
    qualifications, to be limited to the following matters:
    (A) each of this Agreement and the Stockholders Agreement
    has been duly authorized, executed and delivered by the Company;
    (B) each of this Agreement and the Stockholders Agreement
    is a valid and binding agreement of the Company, enforceable
    against the Company in accordance with its terms; (C) the
    Common Stock issuable to the Lenders pursuant to such Exchange,
    when issued to the Lenders in accordance with the terms of this
    Agreement, will have been validly issued, fully paid and
    nonassessable; (D) the Company is validly existing in good
    standing under the laws of the State of Delaware; and
    (E) the execution and delivery by the Company of this
    Agreement and the Stockholders Agreement and the consummation of
    the applicable transactions contemplated herein or therein do
    not: (x) constitute a violation of, or a default under, the
    material contracts filed as Exhibits 4.1, 10.11, 10.12,
    10.13 and 10.16 to the Company’s
    Form 10-K
    for the fiscal year ended October 31, 2009, (y) result
    in a “change of control” under the material contracts
    filed as Exhibits 4.1 and 10.13 to the Company’s
    Form 10-K
    for the fiscal year ended October 31, 2009 (subject to
    (a) the accuracy of the representation and warranty made by
    Rhône and the Lenders in Section 4.2(g) hereof and
    (b) an officer’s certificate from the Company as to
    the beneficial ownership of Rhône and its Affiliates
    (including the Lenders)

    

    A-11

 

    (expressed as a percentage) based on the information provided in
    clause (a) and in the case of Exhibit 4.1 to the
    Company’s
    Form 10-K
    for the fiscal year ended October 31, 2009, the number of
    outstanding shares of Voting Stock of the Company and in the
    case of Exhibit 10.13 to the Company’s
    Form 10-K
    for the fiscal year ended October 31, 2009, based on the
    number of outstanding equity interests of the Company entitled
    to vote for members of the Board on a fully-diluted basis (as
    determined in accordance with and as defined in the agreement
    filed as such Exhibit 10.13), in each case, such
    outstanding number to be provided by the Company), or
    (z) violate or conflict with, or result in any
    contravention of, the DGCL, the laws of the State of New York or
    the laws of the State of California;

 

    (vii) As of the closing date of such Exchange (except for
    any representation or warranty that is expressly made as of a
    specified date, in which case as of such specified date), each
    representation or warranty of the Company or the Borrowers
    contained in this Agreement shall be true and correct in all
    material respects (except for such representations and
    warranties as are qualified by materiality or Material Adverse
    Effect, which representations and warranties shall be true and
    correct in all respects);

 

    (viii) Execution and delivery to Rhône of a
    certificate, dated as of the closing date of such Exchange, from
    the Chief Executive Officer or the Chief Financial Officer of
    the Company confirming that (i) the representations and
    warranties of the Company contained in this Agreement are true
    and correct in all material respects (except for such
    representations and warranties as are qualified by materiality
    or Material Adverse Effect, which representations and warranties
    shall be true and correct in all respects) on and as of such
    closing date with the same force and effect as though such
    representations and warranties had been made on and as of such
    closing date, other than those representations and warranties
    that are made as of another date, in which case such
    representations and warranties shall be true and correct as of
    such other date, and (ii) all agreements, covenants,
    obligations and conditions required by this Agreement to be
    performed or complied with by the Company at or prior to such
    closing date have been performed and complied with in all
    material respects; and

 

    (ix) The Company shall have paid to Rhône
    and/or each
    of the Lenders all amounts due under (i) this Agreement,
    including, without limitation, the Exchange Fee and all expenses
    provided for in Section 7.3 and (ii) the Credit
    Agreements as provided in Section 2.1(a) and, if
    applicable, Section 2.2(c).

 

    (x) No temporary restraining order, preliminary or
    permanent injunction or other judgment or order issued by any
    governmental authority shall be in effect which prohibits,
    restrains or renders illegal the consummation of the
    transactions contemplated by this Agreement.

 

    (b) Notwithstanding any other provision of this Agreement,
    none of the Company or the Borrowers will be obligated to
    complete the First Exchange and, if applicable, the Standby
    Exchange, or fulfill any other obligations arising hereunder,
    unless the following conditions precedent have been (or,
    substantially contemporaneously with the applicable Exchange,
    will be) satisfied in full:

 

    (i) Receipt within ninety (90) days of the date of
    this Agreement of the Stockholder Approval;

 

    (ii) Rhône and the Lenders having performed in all
    material respects each of the obligations required by this
    Agreement to be performed or complied with by Rhône and the
    Lenders at or prior to the closing date of such Exchange;

 

    (iii) If required, the filing of a notification under the
    HSR Act and the expiration or termination of the waiting period
    and any extension of such period under the HSR Act as applicable
    to the Exchanges;

 

    (iv) Execution and delivery by Rhône Capital III
    L.P. and each Lender of the Stockholders Agreement; and

 

    (v) As of the closing date of such Exchange (except for any
    representation or warranty that is expressly made as of a
    specified date, in which case as of such specified date), each
    representation or warranty of Rhône and the Lenders
    contained in this Agreement shall be true and correct in all
    material respects (except for such representations and
    warranties as are qualified by materiality or Rhône
    Material Adverse Effect, which representations and warranties
    shall be true and correct in all respects).

    

    A-12

 

    (vi) No temporary restraining order, preliminary or
    permanent injunction or other judgment or order issued by any
    governmental authority shall be in effect which prohibits,
    restrains or renders illegal the consummation of the
    transactions contemplated by this Agreement.

 

    6.2 Conditions Precedent to the Standby
    Exchange.  Notwithstanding any other provision
    of this Agreement, none of Rhône or any of the Lenders will
    be obligated to complete the Standby Exchange if the Company
    fails to provide to Rhône, pursuant to Section 2.2(a),
    an irrevocable, written notice on or prior to the Standby
    Exchange Exercise Date.

 

		
	
    7.  
	
    TERMINATION;
    FEES AND EXPENSES.

 

    7.1 Termination.

 

    (a) Subject to Section 7.1(c), in the event that
    Company or the Borrowers are not obligated to complete the First
    Exchange due to the failure to satisfy the conditions precedent
    to the closing of the Exchanges provided for in
    Section 6.1(b), the Company may terminate this Agreement by
    delivering notice to Rhône of such termination;
    provided that, notwithstanding the foregoing, the Company
    may not terminate this Agreement at any time where it is in
    material breach of any of its obligations under this Agreement.

 

    (b) Subject to Section 7.1(c), in the event that
    Rhône or any of the Lenders are not obligated to complete
    the First Exchange due to the failure to satisfy the conditions
    precedent to the closing of the Exchanges provided for in
    Section 6.1(a), Rhône and the Lenders may terminate
    this Agreement by delivering notice to the Company of such
    termination; provided that, notwithstanding the
    foregoing, Rhône and the Lenders may not terminate this
    Agreement at any time where they are in material breach of any
    of their obligations under this Agreement.

 

    (c) In the event of termination of this Agreement in
    accordance with Section 7.1(a) or Section 7.1(b), this
    Agreement shall become void and of no effect, with no liability
    to any Person on the part of any party hereto (or of any of its
    representatives or Affiliates); provided, however,
    that (i) no such termination shall relieve any party hereto
    of any liability or damages to the other party hereto resulting
    from any material breach of this Agreement occurring prior to
    such termination and (ii) the provisions set forth in
    Sections 7.2 and 7.3 and Article 8 (other than
    Sections 8.11 and 8.13), and all related definitions, shall
    survive the termination of this Agreement.

 

    7.2 Termination Fee.  In the event
    the First Exchange fails to close due to (i) the failure by
    the Company to obtain the Stockholder Approval on or prior to
    September 22, 2010, and the Company prepays any portion of
    the outstanding principal amount of the Term Loans within six
    (6) months immediately following the earlier of
    (A) the date of the Special Meeting (or, if adjourned, the
    date of the reconvened Special Meeting) at which the Exchanges
    are not approved as a result of the negative vote of the
    Company’s stockholders or (B) September 22, 2010,
    (ii) the Board changing the Recommendation, or (iii) a
    material breach by the Company of its obligations hereunder, the
    Company shall pay a termination fee to Rhône, as agent for
    the Lenders, in an aggregate amount equal to $10,000,000 (the
    “Termination Fee”). Notwithstanding anything
    contained herein to the contrary, Rhône, as agent for the
    Lenders, will not be entitled to receive the Termination Fee
    under any other circumstances and the Termination Fee shall be
    the sole and exclusive remedy of Rhône and the Lenders as a
    result of a termination of this Agreement by the Company
    pursuant to Section 7.1(a) or by Rhône and the Lenders
    pursuant to Section 7.1(b). Upon the payment of the
    Termination Fee pursuant to this Section 7.2, none of the
    Company and the Borrowers shall have any further liability or
    obligation relating to or arising out of this Agreement or the
    transactions contemplated by this Agreement (other than
    indemnification obligations under Section 8.9 and any
    expense reimbursement obligations under Section 7.3).

 

    7.3 Expenses.  All reasonable and
    documented
    out-of-pocket
    costs and expenses incurred by Rhône or the Lenders in
    connection with the Exchanges, including, without limitation,
    reasonable counsel fees and the filing fees in connection with
    all necessary notifications and other filings under the HSR Act
    shall be borne by the Company and shall be payable by the
    Company no later than ten (10) days following receipt by
    the Company of (i) a written notice from Rhône or the
    Lenders indicating any payments due pursuant to this

    

    A-13

 

    Section 7.3, and (ii) reasonably detailed
    documentation of the expenses for which reimbursement is sought.
    For the avoidance of doubt, nothing under this Section 7.3
    or Section 2.4 shall amend the expense reimbursement
    obligations of the Company under the Credit Agreements.

 

		
	
    8.  
	
    MISCELLANEOUS.

 

    8.1 Payment of Taxes.  The Company
    shall pay all transfer, stamp and other similar taxes that may
    be imposed in respect of the issuance or delivery of the Common
    Stock pursuant to the Exchanges.

 

    8.2 Notices.  Any notice, demand or
    delivery to the Company or Rhône or the Lenders authorized
    by this Agreement shall be sufficiently given or made when
    mailed if sent by first-class mail, postage prepaid, addressed
    to the Company or Rhône, as applicable, as follows:

 

    If to the Company:

 

    Quiksilver, Inc.

    15202 Graham St.

    Huntington Beach, CA 92649

    Fax: (734) 477-1370

    Attention:  General Counsel

 

    With a copy to:

 

    Skadden, Arps, Slate, Meagher & Flom LLP

    300 South Grand Avenue

    Los Angeles, CA 90071-3144

    Fax: (213) 621-5493

    Attention:  Brian J. McCarthy and K. Kristine Dunn

 

    If to Rhône:

 

    Rhône Group L.L.C.

    630 Fifth Avenue, 27th Floor

    New York, NY 10111

    Fax: (212) 218-6789

    Attention:  Baudoin Lorans and M. Allison Steiner

 

    With a copy to:

 

    Sullivan & Cromwell LLP

    125 Broad Street

    New York, New York 10004-2498

    Fax: (212) 558-3588

    Attention:  Richard A. Pollack

 

    or such other address as shall have been furnished to the party
    giving or making such notice, demand or delivery.

 

    Any notice required to be given by the Company to the Lenders
    pursuant to this Agreement shall be made by mailing by
    registered mail, return receipt requested, to the Lenders at
    their respective addresses shown on Schedule 2.1(a)
    attached hereto. Any notice that is mailed in the manner herein
    provided shall be conclusively presumed to have been duly given
    when mailed, whether or not the Lender receives the notice.

 

    8.3 Agent.  The Lenders appoint
    Rhône as their agent and authorize Rhône to bind, and
    take all actions in connection with this Agreement on behalf of,
    the Lenders. The Company shall be entitled to rely on direction
    by Rhône on behalf of any Lender for all purposes hereunder.

 

    8.4 Governing Law.  THIS
    AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
    WITH, THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT 

    

    A-14

 

    LIMITATION,
    SECTIONS 5-1401
    AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND THE NEW
    YORK CIVIL PRACTICE LAWS AND RULES 327(B).

 

    8.5 Submission to
    Jurisdiction.  EACH OF THE BORROWERS AND THE
    COMPANY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND
    ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF
    THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE
    UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW
    YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
    PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
    STOCKHOLDERS AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY
    JUDGMENT, AND EACH OF THE BORROWERS AND THE COMPANY IRREVOCABLY
    AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY
    SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH
    NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY
    APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE BORROWERS AND
    THE COMPANY AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
    PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
    JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
    PROVIDED BY LAW. NOTHING IN THIS AGREEMENT SHALL AFFECT ANY
    RIGHT THAT ANY OF THE LENDERS OR RHôNE MAY OTHERWISE HAVE
    TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR
    THE STOCKHOLDERS AGREEMENT AGAINST ANY OF THE COMPANY OR THE
    BORROWERS OR THEIR PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

    8.6 Service of Process.  EACH OF
    THE BORROWERS AND THE COMPANY IRREVOCABLY CONSENTS TO SERVICE OF
    PROCESS IN THE MANNER PROVIDED FOR NOTICES IN
    SECTION 8.2.  NOTHING IN THIS AGREEMENT
    WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN
    ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

    8.7 Waiver of Venue.  EACH OF THE
    BORROWERS AND THE COMPANY IRREVOCABLY AND UNCONDITIONALLY
    WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
    OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF
    VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
    THIS AGREEMENT IN ANY COURT REFERRED TO IN SECTION 8.5 OF
    THIS AGREEMENT. EACH OF THE BORROWERS AND THE COMPANY HEREBY
    IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
    APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
    MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

    8.8 Persons Benefiting.  This
    Agreement shall be binding upon and inure to the benefit of the
    Company, the Borrowers and Rhône, and their successors,
    assigns, beneficiaries, executors and administrators, and the
    Lenders. Nothing in this Agreement is intended or shall be
    construed to confer upon any Person, other than the Company, the
    Borrowers, Rhône and the Lenders, any right, remedy or
    claim under or by reason of this Agreement or any part hereof.

 

    8.9 Indemnification.  The Company
    and the Borrowers shall, jointly and severally, indemnify
    Rhône, the Lenders and each of their respective agents,
    attorneys, accountants, advisors, consultants, directors,
    officers, employees, partners, stockholders, Affiliates and
    other representatives (each such Person an
    “Indemnitee”) against, and hold each Indemnitee
    harmless from, any and all losses, claims, causes of action,
    damages, liabilities, settlement payments, costs and related
    expenses (including the reasonable fees, charges and
    disbursements of counsel (it being understood that the Company
    shall not be liable for the fees and expenses of more than one
    counsel)), incurred by any Indemnitee or asserted against any
    Indemnitee by any third party or by the Company or the Borrowers
    arising out of, in connection with, or as a result of
    (i) the execution or delivery of this Agreement or any
    agreement or instrument contemplated hereby, the performance by
    the parties hereto of their respective obligations hereunder or
    the consummation of the transactions contemplated hereby or
    (ii) any actual or prospective claim, litigation,
    investigation or proceeding relating to any of the foregoing,
    whether based on contract, tort or any other theory, whether
    brought by a third party or by the Company or the Borrowers or
    any of their directors, shareholders or creditors, and
    regardless of whether any Indemnitee is a party thereto, in all
    cases, whether or not caused by or arising, in whole or in part,
    out of the

    

    A-15

 

    comparative, contributory or sole negligence of the Indemnitee;
    provided that such indemnity shall not, as to any
    Indemnitee, be available to the extent that such losses, claims,
    damages, liabilities or related expenses are determined by a
    court of competent jurisdiction by final and nonappealable
    judgment to have resulted from the gross negligence, willful
    misconduct or bad faith of such Indemnitee.

 

    8.10 Counterparts.  This Agreement
    may be executed in any number of counterparts, each of which
    shall be deemed an original, but all of which together
    constitute one and the same instrument.

 

    8.11 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.

 

    8.12 Successors and Assigns.  This
    Agreement shall be binding upon and inure to the benefit of the
    parties and their successors and permitted assigns. No party
    shall assign this Agreement or any rights or obligations
    hereunder.

 

    8.13 Survival.  The parties agree
    that the covenants and agreements contained in this Agreement
    and the representations and warranties of the parties contained
    in Article 4 shall survive indefinitely, notwithstanding
    any due diligence investigation conducted by or on behalf of
    Rhône or the Lenders.

 

    8.14 Publicity.  The Company and
    Rhône each shall consult with each other prior to issuing
    any press releases or making any public statement with respect
    to this Agreement or the Stockholders Agreement and the
    transactions contemplated hereby and thereby, and shall not
    issue any such press release or make any such public statement
    with respect thereto unless the text of the statement shall
    first have been agreed to by the parties hereto;
    provided, however, that Rhône and the Lenders may
    make customary communications with their limited partners and
    other co-investors without consulting the Company.
    Notwithstanding the foregoing, Rhône, the Lenders and the
    Company acknowledge and agree that (i) the Company will
    file a Current Report on
    Form 8-K
    with the SEC that will describe the terms of this Agreement and
    the transactions contemplated hereby, (ii) Rhône, the
    Lenders and certain of their Affiliates will file one or more
    amendments to their Schedule 13D and a Form 4 with
    respect to the Exchanges that will describe the terms of this
    Agreement, the transactions contemplated hereby and the results
    of the Exchanges and (iii) nothing contained in this
    Section 8.14 shall prohibit the Company, Rhône or the
    Lenders from complying with its obligations under the federal
    securities laws or the rules and regulations of the NYSE.

 

    8.15 Exchange Rate.  For purposes
    of this Agreement, with respect to the First Exchange Closing
    Date, the Standby Exchange Closing Date or the date immediately
    following the closing of the Exchanges, as applicable, the
    Dollar equivalent of any Euro-denominated principal amount
    outstanding under the European Term Loans on such date shall be
    equal to the product of (i) the applicable Euro-denominated
    principal amount multiplied by (ii) the Dollar to
    Euro exchange rate published in The Wall Street Journal
    on the day immediately prior to such date.

 

    8.16 Severability.  In case any
    provision of this Agreement is declared invalid, illegal or
    unenforceable, the validity, legality and enforceability of the
    remaining provisions shall not in any way be affected or
    impaired thereby.

 

    8.17 Headings.  The descriptive
    headings of the several Sections and
    Sub-Sections
    of this Agreement are inserted for convenience and shall not
    control or affect the meaning or construction of any of the
    provisions hereof.

 

    8.18 Entire Agreement.  The Letter
    Agreement is hereby terminated and replaced by this Agreement.
    This Agreement and the other agreements referred to herein
    constitute the entire agreement and supersede all prior
    agreements, including the Letter Agreement, and understandings,
    both written and oral, between the parties with respect to the
    subject matter hereof.

 

    8.19 Limitation of Liability.  No
    party to this Agreement shall be liable to any other party for
    any consequential, indirect, special or incidental damages under
    any provision of this Agreement or for any consequential,
    indirect, penal, special or incidental damages arising out of
    any act or failure to act hereunder even if that party has been
    advised of or has foreseen the possibility of such damages.

    

    A-16

 

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

 

    QUIKSILVER, INC.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

    QUIKSILVER AMERICAS, INC.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

    MOUNTAIN & WAVE S.À R.L.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

    ROMOLO HOLDINGS C.V.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

    TRITON SPV L.P.

 

			
	 	    By: 
	
        

    Name:     

    Title:

    

    A-17

 

    TRITON ONSHORE SPV L.P.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

    TRITON OFFSHORE SPV L.P.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

    TRITON COINVESTMENT SPV L.P.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

    RHÔNE GROUP L.L.C.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

 

    [Signature
    Page to Exchange Agreement]
    

    

    A-18

 

    Schedule 2.1(a)

 

	 	 	 	 	 
	
 
	
 
	
    Number of Shares of

    
	
 

	
 
	
 
	
    Common Stock to be

    
	
 

	

    Lender

	
 
	
    Issued in the First Exchange
	
 

	 

	

    Romolo Holdings C.V.

    c/o Numitor
    Governance S.à r.l.

    c/o Rhône
    Group L.L.C.

    630 5th Avenue, 27th Floor

    New York, NY 10111

	
 
	
 
	
    1,040,634
	
 

	

    Triton SPV L.P.

    
    c/o Triton
    GP SPV LLC

    c/o Rhône
    Capital III L.P.

    630 5th Avenue, 27th Floor

    New York, NY 10111

	
 
	
 
	
    2,081,477
	
 

	

    Triton Onshore SPV L.P.

    c/o Triton
    GP SPV LLC

    c/o Rhône
    Capital III L.P.

    630 5th Avenue, 27th Floor 

    New York, NY 10111

	
 
	
 
	
    6,719,935
	
 

	

    Triton Offshore SPV L.P.

    c/o Triton
    GP SPV LLC

    c/o Rhône
    Capital III L.P. 

    630 5th Avenue, 27th Floor 

    New York, NY 10111

	
 
	
 
	
    5,600,700
	
 

	

    Triton Coinvestment SPV L.P.

    c/o Triton
    GP SPV LLC

    c/o Rhône
    Capital III L.P.

    630 5th Avenue, 27th Floor 

    New York, NY 10111

	
 
	
 
	
    1,223,921
	
 

	

    TOTAL

	
 
	
 
	
    16,666,667
	
 

    

    A-19

 

    Schedule 4.2(g)

 

	 	 	 	 	 	 	 	 	 
	
 
	
 
	
    Aggregate

    
	
 
	
    Aggregate

    

	
 
	
 
	
    Principal Amount of

    
	
 
	
    Principal Amount of

    

	

    Lender

	
 
	
    US Term Loans
	
 
	
    European Term Loans

	 

	

    Romolo Holdings C.V. 

	
 
	
    $
	
    8,125,072.18
	
 
	
 
	
    €
	
     1,379,446.19
	
 

	

    Triton SPV L.P. 

	
 
	
    $
	
    16,251,768.97
	
 
	
 
	
    €
	
     2,759,168.20
	
 

	

    Triton Onshore SPV L.P. 

	
 
	
    $
	
    52,467,943.21
	
 
	
 
	
    €
	
     8,907,822.94
	
 

	

    Triton Offshore SPV L.P. 

	
 
	
    $
	
    43,729,172.47
	
 
	
 
	
    €
	
     7,424,185.16
	
 

	

    Triton Coinvestment SPV L.P. 

	
 
	
    $
	
    9,556,134.08
	
 
	
 
	
    €
	
     1,622,406.85
	
 

	

    TOTAL

	
 
	
    $
	
    130,130,090.91
	
 
	
 
	
    €
	
     22,093,029.34
	
 

    

    A-20

 

    Exhibit 2.6

 

 

    STOCKHOLDERS
    AGREEMENT

    by and among

    QUIKSILVER, INC.,

    THE INITIAL HOLDERS

    and

    RHÔNE CAPITAL III L.P.

    Dated as of • , 2010

 

 

 

    TABLE OF
    CONTENTS

 

	 	 	 	 	 	 	 	 	 	 	 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
    Page
	
 

	 

	
 
	
    1.
	
 
	
 
	
    DEFINITIONS
	
 
	
 
	
    1
	
 

	
 
	
    2.
	
 
	
 
	
    TRANSFER RESTRICTIONS; COMPLIANCE WITH THE SECURITIES ACT
	
 
	
 
	
    4
	
 

	
 
	
 
	
 
	
 
	
    2.1.
	
 
	
    Transferability of the Exchange Stock
	
 
	
 
	
    4
	
 

	
 
	
 
	
 
	
 
	
    2.2.
	
 
	
    Compliance with the Securities Act
	
 
	
 
	
    4
	
 

	
 
	
    3.
	
 
	
 
	
    AMENDMENT TO WARRANT AGREEMENT
	
 
	
 
	
    5
	
 

	
 
	
 
	
 
	
 
	
    3.1.
	
 
	
    Amendment to Warrant Agreement
	
 
	
 
	
    5
	
 

	
 
	
    4.
	
 
	
 
	
    [RESERVED]
	
 
	
 
	
    6
	
 

	
 
	
    5.
	
 
	
 
	
    REPRESENTATIONS AND WARRANTIES
	
 
	
 
	
    6
	
 

	
 
	
 
	
 
	
 
	
    5.1.
	
 
	
    Representations and Warranties of the Company
	
 
	
 
	
    6
	
 

	
 
	
 
	
 
	
 
	
    5.2.
	
 
	
    Representations and Warranties of Rhône, Rhône Capital
    and each of the Initial Holders
	
 
	
 
	
    6
	
 

	
 
	
    6.
	
 
	
 
	
    COVENANTS
	
 
	
 
	
    7
	
 

	
 
	
 
	
 
	
 
	
    6.1.
	
 
	
    Standstill
	
 
	
 
	
    7
	
 

	
 
	
 
	
 
	
 
	
    6.2.
	
 
	
    Board Representation
	
 
	
 
	
    8
	
 

	
 
	
 
	
 
	
 
	
    6.3.
	
 
	
    Financial Statements
	
 
	
 
	
    9
	
 

	
 
	
 
	
 
	
 
	
    6.4.
	
 
	
    Rule 144 Reporting
	
 
	
 
	
    9
	
 

	
 
	
 
	
 
	
 
	
    6.5.
	
 
	
    Preemptive Rights
	
 
	
 
	
    10
	
 

	
 
	
 
	
 
	
 
	
    6.6.
	
 
	
    Consent Upon Certain Issuances
	
 
	
 
	
    10
	
 

	
 
	
 
	
 
	
 
	
    6.7.
	
 
	
    Affiliate Transactions
	
 
	
 
	
    10
	
 

	
 
	
    7.
	
 
	
 
	
    MISCELLANEOUS
	
 
	
 
	
    10
	
 

	
 
	
 
	
 
	
 
	
    7.1.
	
 
	
    Agent
	
 
	
 
	
    10
	
 

	
 
	
 
	
 
	
 
	
    7.2.
	
 
	
    Removal of Legends
	
 
	
 
	
    10
	
 

	
 
	
 
	
 
	
 
	
    7.3.
	
 
	
    Notices
	
 
	
 
	
    10
	
 

	
 
	
 
	
 
	
 
	
    7.4.
	
 
	
    Applicable Law
	
 
	
 
	
    11
	
 

	
 
	
 
	
 
	
 
	
    7.5.
	
 
	
    Persons Benefiting
	
 
	
 
	
    11
	
 

	
 
	
 
	
 
	
 
	
    7.6.
	
 
	
    Counterparts
	
 
	
 
	
    11
	
 

	
 
	
 
	
 
	
 
	
    7.7.
	
 
	
    Amendments
	
 
	
 
	
    11
	
 

	
 
	
 
	
 
	
 
	
    7.8.
	
 
	
    Headings
	
 
	
 
	
    12
	
 

	
 
	
 
	
 
	
 
	
    7.9.
	
 
	
    Entire Agreement
	
 
	
 
	
    12
	
 

	
 
	
 
	
 
	
 
	
    7.10.
	
 
	
    Limitation of Liability
	
 
	
 
	
    12
	
 

    

    i

 

    STOCKHOLDERS
    AGREEMENT

 

    This STOCKHOLDERS AGREEMENT (the “Agreement”)
    is entered into as of • , 2010 by and among
    Quiksilver, Inc., a Delaware corporation (the
    “Company”), the Initial Holders and Rhône
    Capital III L.P. (“Rhône”).

 

    WITNESSETH:

 

    WHEREAS, the Company, the Initial Holders and Rhône Group
    L.L.C. are party to the Exchange Agreement, dated as of
    June • , 2010 (the “Exchange
    Agreement”), pursuant to which the Initial Holders are
    exchanging (i) pursuant to the First Exchange (as defined
    in the Exchange Agreement), on a pro rata basis, $75,000,000 of
    the principal amount outstanding under the Term Loans (as
    defined in the Exchange Agreement) for an aggregate of
    16,666,667 shares of Common Stock and (ii) if the
    Borrowers (as defined in the Exchange Agreement) have exercised
    their option in respect of the Standby Exchange (as defined in
    the Exchange Agreement), an additional portion of the
    outstanding principal amount of the Term Loans for such
    additional number of shares of Common Stock as determined under
    the Exchange Agreement;

 

    WHEREAS, in connection with the consummation of the transactions
    contemplated by the Exchange Agreement, the parties desire to
    enter into this Agreement in order to create certain rights for
    Rhône Capital III L.P. and the Initial
    Holders; and

 

    WHEREAS, the execution of this Agreement is an inducement and a
    condition precedent to the obligations of the parties to the
    Exchange Agreement.

 

    NOW, THEREFORE, in consideration of the mutual covenants and
    undertakings contained herein and in the Exchange Agreement, as
    an inducement to Rhône and the Initial Holders to
    consummate the transactions contemplated by the Exchange
    Agreement, and for other good and valuable consideration, the
    receipt and sufficiency of which is hereby acknowledged, the
    parties agree as follows:

 

		
	
    1.  
	
    DEFINITIONS.

 

    As used in this Agreement, the following terms shall have the
    following meanings:

 

    “ABL Agent” means Bank of America, N.A.,
    in its capacity as administrative agent for the lenders under
    the ABL Credit Agreement, together with any successor agent.

 

    “ABL Credit Agreement” means the Credit
    Agreement, dated as of July 31, 2009 among Quiksilver
    Americas, Inc., the other borrowers party thereto, the Company,
    the other guarantors party thereto, the lenders party thereto,
    the ABL Agent, Bank of America, N.A. and General Electric
    Capital Corporation, as co-collateral agents, and the other
    agents party thereto, and any refinancings, refundings, renewals
    or extensions thereof permitted hereunder.

 

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

 

    “Appointing Funds” means Triton Onshore
    SPV L.P. and Triton Coinvestment SPV L.P.

 

    “Board” means the board of directors of
    the Company.

 

    “Bylaws” means the Company’s
    Amended and Restated Bylaws, as amended from time to time.

 

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

 

    “Certificate of Incorporation” means the
    Company’s Restated Certificate of Incorporation, as amended
    from time to time.

 

    “Common Stock” means the common stock,
    par value $0.01 per share, of the Company.

 

    “Common Stock Equivalent” means any
    warrant, right or option to acquire any shares of Common Stock
    or any security convertible or exchangeable into shares of
    Common Stock.

 

    “Company” has the meaning set forth in
    the recitals to this Agreement and its successors and assigns.

 

    “Consolidated” means, when used to
    modify a financial term, test, statement, or report of a Person,
    the application or preparation of such term, test, statement or
    report (as applicable) based upon the consolidation, in
    accordance with GAAP, of the financial condition or operating
    results of such Person and its Subsidiaries.

 

    “DGCL” means the Delaware General
    Corporation Law.

 

    “Equity Interests” means with respect to
    any Person, all of the shares of capital stock of (or other
    ownership or profit interests in) such Person, and all of the
    warrants or options for the purchase or acquisition from such
    Person of shares of capital stock of (or other ownership or
    profit interests in) such Person (including partnership, member
    or trust interests therein), whether voting or nonvoting.

 

    “Exchanges” means the First Exchange and
    the Standby Exchange, each as defined in the recitals to this
    Agreement.

 

    “Exchange Act” means the Securities
    Exchange Act of 1934, as amended.

 

    “Exchange Agreement” has the meaning set
    forth in the recitals to this Agreement.

 

    “Exchange Stock” means the Common Stock
    issued to the Holders under the Exchange Agreement at any time
    during the term of this Agreement and any securities issued or
    issuable with respect to any such Common Stock by way of stock
    dividend or stock split or in connection with a combination of
    shares, recapitalization, merger, consolidation or other
    reorganization, the exercise of any preemptive rights under
    Section 6.5 of this Agreement or otherwise.

 

    “Excluded Securities” means (i) the
    Qualifying Employee Stock, (ii) the Exchange Stock,
    (iii) the shares of Common Stock or Series A Preferred
    Stock issuable or issued upon the exercise of the Warrants,
    (iv) any shares of Common Stock or Common Stock Equivalents
    issued for non-cash consideration in connection with any merger,
    consolidation, acquisition or similar business combination,
    (v) any shares of Common Stock issued pursuant to the
    commitments disclosed on Schedule 8.1 of the Warrant
    Agreement and (vi) any shares of Common Stock or Common
    Stock Equivalents issued in connection with any joint venture,
    licensing, development or sponsorship activities in the ordinary
    course of business.

 

    “French Credit Agreement” means the
    Facilities Agreement, dated as of July 31, 2009, among,
    inter alia, Pilot SAS, a Société par Actions
    Simplifiée, and Na Pali, a Société par
    Actions Simplifiée, as borrowers, the Parent and Pilot
    SAS, as original guarantors, and Crédit Lyonnais, BNP
    Paribas and Société Générale
    Corporate & Investment Banking, as mandated lead
    arrangers, as amended, restated, amended and restated,
    supplemented or otherwise modified from time to time.

 

    “Fiscal Month” means any fiscal month of
    any Fiscal Year, which month shall generally end on the last day
    of each calendar month in accordance with the fiscal accounting
    calendar of the Company.

 

    “Fiscal Quarter” means any fiscal
    quarter of any Fiscal Year, which quarters shall generally end
    on the last day of each January, April, July and October of such
    Fiscal Year in accordance with the fiscal accounting calendar of
    the Company.

 

    “Fiscal Year” means any period of 12
    consecutive months ending on October 31st of any
    calendar year.

    

    2

 

    “GAAP” means generally accepted
    accounting principles in the United States set forth in the
    opinions and pronouncements of the Accounting Principles Board
    and the American Institute of Certified Public Accountants and
    statements and pronouncements of the Financial Accounting
    Standards Board or such other principles as may be approved by a
    significant segment of the accounting profession in the United
    States, that are applicable to the circumstances as of the date
    of determination, consistently applied.

 

    “Holders” means the Initial Holders and
    any assignee or transferee of such Initial Holders and, unless
    otherwise provided or indicated herein, the holders of the
    Exchange Stock.

 

    “HSR Act” means the
    Hart-Scott-Rodino
    Antitrust Improvements Act of 1976, as amended, and the rules
    and regulations promulgated thereunder.

 

    “Initial Holders” means each of
    (i) Romolo Holdings C.V., (ii) Triton SPV L.P.,
    (iii) Triton Onshore SPV L.P., (iv) Triton Offshore
    SPV L.P. and (v) Triton Coinvestment SPV L.P.

 

    “Material Adverse Effect” means
    (a) a material adverse change in, or a material adverse
    effect upon, the operations, business, properties, liabilities,
    or condition (financial or otherwise) of the Company taken as a
    whole; (b) a material impairment of the ability of the
    Company to perform its obligations under this Agreement; or
    (c) a material impairment of the rights and remedies of
    Rhône, the Initial Holders
    and/or
    Rhône Group L.L.C., as applicable, under the Credit
    Agreements (for so long as the Credit Agreements will remain
    outstanding after giving effect to the Exchanges), the Warrant
    Agreement, this Agreement or the Exchange Agreement.

 

    “Permitted Transaction” means any
    acquisition of any Common Stock or Common Stock Equivalent
    (i) by Rhône or any of its Affiliates (including, for
    the avoidance of doubt, any partner or employee of Rhône
    then serving on the Board) directly from the Company or
    (ii) made pursuant to a tender or exchange offer made to
    all stockholders of the Company.

 

    “Permitted Transfer” means any transfer
    (i) to any Affiliate of Rhône or Rhône Group
    L.L.C. (including, for the avoidance of doubt, any entity
    controlled by Rhône or Rhône Group L.L.C.) or in a pro
    rata distribution to the partners of a fund controlled by
    Rhône or Rhône Group L.L.C., (ii) in an
    underwritten public offering, other broad distribution sale
    (including, without limitation, a sale pursuant to
    Rule 144) or open-market transaction, (iii) to
    any Person in connection with an offer by such Person to
    purchase 100% of the Common Stock then outstanding or
    (iv) to any Person of a number of shares of the Exchange
    Stock representing no greater than 15% of the then-outstanding
    number of shares of Common Stock.

 

    “Person” means any individual,
    corporation, partnership, joint venture, association, joint
    stock company, trust, unincorporated organization or government
    or any agency or political subdivision thereof.

 

    “Qualifying Employee Stock” has the
    meaning set forth in the Warrant Agreement.

 

    “Rhône” has the meaning set forth
    in the recitals to this Agreement.

 

    “Rhône Director” means a director
    nominated by an Appointing Fund.

 

    “Rule 144, Rule 405 and
    Rule 415” mean, in each case, such rule
    promulgated under the Securities Act (or any successor
    provision), as the same shall be amended from time to time.

 

    “SEC” means the United States Securities
    and Exchange Commission.

 

    “Securities Act” means the Securities
    Act of 1933, as amended.

 

    “Series A Preferred Stock” means
    the convertible non-voting preferred stock, par value $0.01 per
    share, of the Company on the terms set forth in Exhibit C
    of the Warrant Agreement.

 

    “Standstill Period” means the period
    commencing on the date hereof and continuing until such time as
    the restrictions set forth in Section 6.1(a) terminate in
    accordance with the terms of Section 6.1(c).

 

    “Stockholder Approval” has the meaning
    set forth in the Exchange Agreement.

    

    3

 

    “Subsidiary” of a Person means a
    corporation, partnership, joint venture, limited liability
    company or other business entity of which a majority of the
    Equity Interests having ordinary voting power for the election
    of directors or other governing body are at the time
    beneficially owned, or the management of which is otherwise
    controlled, directly, or indirectly through one or more
    intermediaries, or both, by such Person.

 

    “Voting Stock” means all classes of
    Capital Stock of the Company then outstanding and normally
    entitled to vote in the election of directors.

 

    “Warrant Agreement” means the Warrant
    and Registration Rights Agreement, dated as of July 31,
    2009, by and among the Company, Rhône and the initial
    Warrant holders party thereto.

 

    “Warrants” means the warrants issued by
    the Company from time to time pursuant to the Warrant Agreement.

 

		
	
    2.  
	
    TRANSFER
    RESTRICTIONS; COMPLIANCE WITH THE SECURITIES ACT.

 

    2.1 Transferability of the Exchange
    Stock.  The Exchange Stock may not be
    transferred to any Person, other than (i) with the prior
    written consent of the Company or (ii) pursuant to a
    Permitted Transfer (subject, in the case of a Permitted
    Transfer, to compliance with Section 2.2).

 

    2.2 Compliance with the Securities Act.

 

    (a) The Exchange Stock may be transferred to any Person
    pursuant to a Permitted Transfer, provided that such transfer
    shall be in compliance with this Section 2.2.

 

    (b) A Holder may sell its Exchange Stock to a transferee
    that is an “accredited investor” as such term is
    defined in Regulation D under the Securities Act,
    provided that each of the following conditions is
    satisfied:

 

    (i) with respect to any “accredited investor”
    that is not an institution, such transferee, as the case may be,
    provides certification establishing to the reasonable
    satisfaction of the Company that it is an “accredited
    investor”;

 

    (ii) such transferee represents that it is acquiring the
    Exchange Stock for its own account and that it is not acquiring
    such Exchange Stock with a view to, or for offer or sale in
    connection with, any distribution thereof (within the meaning of
    the Securities Act) that would be in violation of the securities
    laws of the United States or any applicable state thereof, but
    subject, nevertheless, to the disposition of its property being
    at all times within its control; and

 

    (iii) such Holder or transferee agrees to be bound by the
    provisions of this Section 2 with respect to any sale of
    the Exchange Stock.

 

    (c) A Holder may sell its Exchange Stock in accordance with
    Regulation S under the Securities Act.

 

    (d) A Holder may sell its Exchange Stock to a transferee if:

 

    (i) such Holder gives written notice to the Company of its
    intention to effect such sale, which notice shall describe the
    manner and circumstances of the proposed transaction in
    reasonable detail;

 

    (ii) such notice includes a certification by the Holder to
    the effect that such proposed sale may be effected without
    registration under the Securities Act or under applicable Blue
    Sky laws; and

 

    (iii) such transferee complies with
    Sections 2.2(b)(ii) and 2.2(b)(iii).

 

    (e) Except for a sale in accordance with
    Section 2.2(f) and subject to Section 7.2, each
    certificate representing the Exchange Stock held by any Holder
    shall be stamped or otherwise imprinted with a legend
    substantially in the following form (in addition to any legend
    required under applicable law or other agreement):

 

    THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
    REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
    QUALIFIED UNDER 

    

    4

 

    APPLICABLE STATE SECURITIES LAWS. SUCH SHARES MAY BE
    OFFERED, SOLD OR TRANSFERRED ONLY IN COMPLIANCE WITH THE
    REQUIREMENTS OF SUCH ACT AND OF ANY APPLICABLE STATE SECURITIES
    LAWS AND SUBJECT TO THE PROVISIONS OF THE STOCKHOLDERS AGREEMENT
    DATED AS OF [ • ], 2010 BY AND AMONG THE COMPANY,
    RHôNE CAPITAL III L.P. AND THE INITIAL HOLDERS PARTY
    THERETO. A COPY OF THE STOCKHOLDERS AGREEMENT IS AVAILABLE AT
    THE OFFICES OF THE COMPANY.

 

    (f) A Holder may sell its Exchange Stock in a transaction
    that is registered under the Securities Act.

 

		
	
    3.  
	
    AMENDMENT
    TO WARRANT AGREEMENT

 

    3.1 Amendment to Warrant
    Agreement.  The Warrant Agreement is hereby
    amended as follows:

 

    (a) Article I of the Warrant Agreement is hereby
    amended by inserting the following two defined terms between the
    defined terms “Exchange Act” and “Excluded
    Securities”:

 

    “Exchange Agreement:  the Exchange
    Agreement, dated as of June 24, 2010, by and among the
    Company, Quiksilver Americas, Inc., Mountain & Wave
    S.à r.l., Rhône Group L.L.C. and the Initial Warrant
    Holders.

 

    Exchange Stock:  the Common Stock issued
    to the Holders under the Exchange Agreement at any time during
    the term of the Stockholders Agreement and any securities issued
    or issuable with respect to any such Common Stock by way of
    stock dividend or stock split or in connection with a
    combination of shares, recapitalization, merger, consolidation
    or other reorganization, the exercise of any preemptive rights
    under Section 6.5 of the Stockholders Agreement or
    otherwise.”

 

    (b) Only with respect to Article 4 of the Warrant
    Agreement, but excluding Section 4.11 thereof, the
    definition of “Registrable Securities” as set
    forth in Article I of the Warrant Agreement is hereby
    amended in its entirety to read as follows:

 

    “Registrable Securities:  Any
    (i) Common Stock, Series A Preferred Stock or other
    securities issuable under the Warrants to the Initial Warrant
    Holders on the Issuance Date and at any time during the term of
    this Agreement, including, without limitation, (x) any
    shares of Common Stock issued in connection with the exercise of
    any preemptive rights under Section 5.6 of this Agreement
    and (y) any securities issued with respect to the Common
    Stock, Series A Preferred Stock or other securities
    issuable under the Warrants in connection with a combination of
    shares, recapitalization, merger, consolidation or other
    reorganization, (ii) Exchange Stock issued pursuant to the
    Exchange Agreement, and (iii) Qualifying Employee Stock
    issued to the Rhône Directors. Registrable Securities shall
    continue to be Registrable Securities until (x) they are
    sold pursuant to an effective Registration Statement under the
    Securities Act, (y) they may be sold by their holder
    pursuant to Rule 144 without limitation thereunder on
    volume or manner of sale, or (z) they shall have otherwise
    been transferred and new securities not subject to transfer
    restrictions under any federal securities laws and not bearing
    any legend restricting further transfer shall have been
    delivered by the Company, all applicable holding periods shall
    have expired, and no other applicable and legally binding
    restriction on transfer by the Holder thereof shall exist.”

 

    (c) Article I of the Warrant Agreement is hereby
    amended by inserting the following defined term between the
    defined terms “Series A Preferred Stock” and
    “Total Cap”:

 

    “Stockholders Agreement:  the
    Stockholders Agreement, dated as of [ • ], 2010,
    by and among the Company, Rhône Capital III and the
    Initial Holders.”

 

    (d) The first sentence of Section 4.01(b) of the
    Warrant Agreement is hereby amended in its entirety to read as
    follows:

 

    “Rhône Capital III shall be entitled to request,
    in the aggregate, five Demand Registrations; provided that
    if at any time during the term of the Stockholders Agreement
    (i) the Company fails to

    

    5

 

    nominate any Rhône Director (as defined in the Stockholders
    Agreement) or to vote any of its proxies in favor of any
    Rhône Director (as defined in the Stockholders Agreement)
    or (ii) the stockholders of the Company fail to elect any
    Rhône Director (as defined in the Stockholders Agreement),
    then Rhône Capital III shall be entitled to request,
    in the aggregate, seven Demand Registrations.”

 

		
	
    4.  
	
    [RESERVED]

 

		
	
    5.  
	
    REPRESENTATIONS
    AND WARRANTIES.

 

    5.1 Representations and Warranties of the
    Company.  The Company hereby represents and
    warrants that:

 

    (a) Existence, Power and
    Ownership.  It is a corporation duly
    organized, validly existing and in good standing under the laws
    of the State of Delaware.

 

    (b) Authorization.  It has the
    corporate power and authority to enter into this Agreement and
    to perform its obligations under, and consummate the
    transactions contemplated by, this Agreement and has by proper
    action duly authorized the execution and delivery of this
    Agreement.

 

    (c) No Conflicts.  None of the
    execution and delivery of this Agreement by the Company, the
    consummation of the transactions contemplated herein or the
    performance of and compliance with the terms and provisions
    hereof will: (i) violate or conflict with any provision of
    the Certificate of Incorporation or the Bylaws;
    (ii) violate any law, regulation, order, writ, judgment,
    injunction, decree or permit applicable to it;
    (iii) violate or materially conflict with any contractual
    provisions of, or cause an event of default under, any material
    indenture, loan agreement, mortgage, deed of trust, contract or
    other agreement or instrument to which it is a party or by which
    it or any of its properties may be bound; or (iv) result in
    or require the creation of any lien, security interest or other
    charge or encumbrance (other than those contemplated in or in
    connection with this Agreement) upon or with respect to its
    properties, except in the case of clauses (ii), (iii) and
    (iv), for such violations, conflicts, defaults, or liens,
    security interests or encumbrances that would not, individually
    or in the aggregate, result in a Material Adverse Effect.

 

    (d) Consents.  Except as otherwise
    provided or contemplated by this Agreement, and subject to the
    accuracy of the representations and warranties of Rhône and
    the Initial Holders, no consent, approval, authorization or
    order of, or filing, registration or qualification with, any
    court or governmental authority or other Person is required in
    connection with the execution, delivery or performance of this
    Agreement.

 

    (e) Enforceable Obligations.  This
    Agreement has been duly executed and delivered by the Company
    and, assuming due authorization, execution and delivery hereof
    by the Initial Holders and Rhône, constitutes a legal,
    valid and binding obligation of the Company, enforceable against
    the Company in accordance with its terms subject, as to
    enforcement, to bankruptcy, insolvency, fraudulent transfer,
    reorganization, moratorium and similar laws of general
    applicability relating to or affecting creditors’ rights
    and to general equity principles.

 

    5.2 Representations and Warranties of Rhône,
    Rhône Capital and each of the Initial
    Holders.  Rhône and each of the Initial
    Holders, severally and not jointly, hereby represents and
    warrants that:

 

    (a) Authorization.  Rhône and
    each of the Initial Holders has the corporate, limited
    partnership or limited liability company, as the case may be,
    power and authority to enter into this Agreement and to perform
    its obligations under, and consummate the transactions
    contemplated by, this Agreement and has by proper action duly
    authorized the execution and delivery of this Agreement.

 

    (b) Enforceable Obligations.  This
    Agreement has been duly executed and delivered by Rhône and
    each of the Initial Holders and assuming due authorization,
    execution and delivery hereof by the Company, this Agreement
    constitutes a legal, valid and binding obligation of Rhône
    and each of the Initial Holders, enforceable in accordance with
    its terms subject, as to enforcement, to bankruptcy, insolvency,
    fraudulent transfer, reorganization, moratorium and similar laws
    of general applicability relating to or affecting
    creditors’ rights and to general equity principles.

    

    6

 

    (c) Investment Intent.  Each
    Initial Holder acknowledges that the Exchange Stock will not
    have been, at the time of issuance, registered under the
    Securities Act or under any state securities laws. Each Initial
    Holder (i) is acquiring the Exchange Stock pursuant to an
    exemption from registration under the Securities Act and solely
    for investment with no present intention to distribute any of
    the securities to any Person in violation of the Securities Act
    or any other applicable securities laws and (ii) will not
    sell or otherwise dispose of any of such Exchange Stock, except
    in compliance with the registration requirements or exemption
    provisions of the Securities Act and any other applicable
    securities laws.

 

    (d) Accredited Investor
    Status.  (i) Each Initial Holder is an
    “accredited investor” as such term is defined in
    Rule 501(a) promulgated under the Securities Act whose
    knowledge and experience in financial and business matters are
    such that each Initial Holder is capable of evaluating the
    merits and risks of its investment in the shares of Exchange
    Stock and (ii)(A) each Initial Holder’s financial situation
    is such that each Initial Holder can afford to bear the economic
    risk of holding the shares of Exchange Stock for an indefinite
    period of time, (B) each Initial Holder can afford to
    suffer complete loss of its investment in shares of Exchange
    Stock, (C) the Company has made available to each Initial
    Holder all documents and information that each Initial Holder
    has requested relating to an investment in the Company and
    (D) each Initial Holder has had adequate opportunity to ask
    questions of, and receive answers from, the Company as well as
    the Company’s officers, employees, agents and other
    representatives concerning the Company’s business,
    operations, financial condition, assets, liabilities and all
    other matters relevant to each Initial Holder’s investment
    in the shares of Exchange Stock.

 

		
	
    6.  
	
    COVENANTS.

 

    6.1 Standstill.

 

    (a) Except as provided in Section 6.1(b), and subject
    to Section 6.1(c), during the Standstill Period, none of
    Rhône or its Affiliates (including, for the avoidance of
    doubt, the Initial Holders) shall, without the prior written
    consent of the Board (excluding the Rhône Directors),
    directly or indirectly:

 

    (i) effect or seek, offer or propose (whether publicly or
    otherwise) to effect or announce any intention to effect or
    cause or participate in, (A) any acquisition of Common
    Stock or Common Stock Equivalents if, as a result of any such
    acquisition, any of Rhône or its Affiliates (including, for
    the avoidance of doubt, the Initial Holders), individually or as
    part of a “group” (within the meaning of
    Section 13(d) of the Exchange Act), would become the
    beneficial owner (as defined in Rule 13(d) of the Exchange
    Act, except that the applicable Person(s) or group shall be
    deemed to have “beneficial ownership” of all shares
    that such Person(s) or group has the right to acquire, whether
    such right is exercisable immediately or only after the passage
    of time), of more than 34.99% of the total voting power of the
    Voting Stock, (B) any tender or exchange offer or merger
    involving the Company or (C) any “solicitation”
    of “proxies” (as such terms are used in the proxy
    rules of the SEC) or written consents with respect to any Voting
    Stock of the Company, in each case in order to elect directors
    to the Board (other than any solicitation of proxies to elect
    any Rhône Director who has not been nominated by the Board
    and/or
    elected by the stockholders of the Company), or

 

    (ii) join, form or participate in any “group”
    (within the meaning of Section 13(d) of the Exchange Act),
    if such group would, as a result, become the beneficial owner
    (as defined in Rule 13(d) of the Exchange Act, except that
    such group shall be deemed to have “beneficial
    ownership” of all shares that such group has the right to
    acquire, whether such right is exercisable immediately or only
    after the passage of time), of more than 34.99% of the total
    voting power of the Voting Stock.

 

    (b) Section 6.1(a) shall not prevent any direct or
    indirect acquisition (or participation in a “group”
    consisting solely of Rhône and any of its Affiliates with
    resulting beneficial ownership of more than 34.99% of the total
    voting power of the Voting Stock (determined in accordance with
    Section 6.1(a)(ii)) by Rhône or any of its Affiliates
    during the Standstill Period of (i) the Exchange Stock,
    (ii) the shares of Common Stock or Series A Preferred
    Stock issuable or issued upon the exercise of the Warrants or in
    connection with the exercise of any preemptive rights under
    Section 5.6 of the Warrant Agreement, (iii) any
    Qualifying Employee

    

    7

 

    Stock issued to the Rhône Directors or (iv) any Common
    Stock or Common Stock Equivalents acquired pursuant to a
    Permitted Transaction.

 

    (c) If at any time during the term of this Agreement
    (i) the Company fails to nominate any Rhône Director
    or to vote any of its proxies in favor of any Rhône
    Director, (ii) the stockholders of the Company fail to
    elect any Rhône Director, (iii) a “change in
    control”, “change of control” or similar concept
    shall have occurred under any indenture, loan agreement,
    mortgage, deed of trust, contract or other agreement or
    instrument to which the Company or any of its subsidiaries is a
    party or by which the Company or any of its subsidiaries or any
    of their properties may be bound (other than as a result of
    Rhône breaching its obligations under Section 6.1(a))
    or (iv) Rhône and its Affiliates (including, for the
    avoidance of doubt, the Initial Holders), individually or as
    part of a “group” (within the meaning of
    Section 13(d) of the Exchange Act), are the beneficial
    owner (as defined in Rule 13(d) of the Exchange Act, except
    that the applicable Person(s) or group shall be deemed to have
    “beneficial ownership” of all shares that such
    Person(s) or group has the right to acquire, whether such right
    is exercisable immediately or only after the passage of time) of
    less than 20% of the outstanding Common Stock of the Company on
    a fully-diluted basis, then the restrictions set forth in
    Section 6.1(a) shall permanently terminate.

 

    6.2 Board Representation.

 

    (a) Subject to Section 6.2(c) and Section 6.2(e),
    in connection with each meeting of stockholders at which
    directors are to be elected to serve on the Board, the Company
    shall take all necessary steps to nominate each Rhône
    Director (or such alternative persons who are proposed by the
    Appointing Funds and notified to the Company on or prior to any
    date set forth in the Company’s constituent documents or
    applicable law for stockholder nominees) and to use its
    reasonable best efforts to cause the Board unanimously to
    recommend that the stockholders of the Company vote in favor of
    each Rhône Director for election to the Board. If, for any
    reason, a candidate designated as a Rhône Director is
    determined to be unqualified to serve on the Board, the
    Appointing Fund shall have the right to designate an alternative
    Rhône Director to be so nominated.

 

    (b) Each elected Rhône Director will hold his or her
    office as a director of the Company for such term as is provided
    in the Company’s constituent documents or until his or her
    death, resignation or removal from the Board or until his or her
    successor has been duly elected and qualified in accordance with
    the provisions of this Agreement, the Company’s constituent
    documents and applicable law. If any Rhône Director ceases
    to serve as a director of the Company for any reason during his
    or her term, the Company will use its reasonable best efforts to
    cause the Board to fill the vacancy created thereby with a
    replacement designated by the applicable Appointing Fund.

 

    (c) The Appointing Funds shall each have the right to
    designate a Rhône Director pursuant to Section 6.2(a)
    until such time as the Initial Holders have sold
    331/3%
    of the Exchange Stock to any Person or Persons other than
    Affiliates of Rhône or other Initial Holders. Thereafter,
    Triton Onshore SPV L.P. shall have the right to designate one
    Rhône Director pursuant to Section 6.2(a) until such
    time as the Initial Holders have sold
    662/3%
    of the Exchange Stock to any Person or Persons other than
    Affiliates of Rhône or other Initial Holders. Thereafter,
    the right of Triton Onshore SPV L.P. to designate a Rhône
    Director hereunder shall terminate.

 

    (d) The Company shall provide the same compensation and
    rights and benefits of indemnity to the Rhône Directors as
    are provided to other non-employee directors.

 

    (e) Nothing in this Section 6.2 shall prevent the
    Board from acting in accordance with its fiduciary duties or
    applicable law or from acting in good faith in accordance with
    its constituent documents, while giving due consideration to the
    intent of this Agreement. The Board shall have no obligation to
    appoint or nominate any Rhône Director upon written notice
    that such appointment or nomination would violate applicable law
    or result in a breach by the Board of its fiduciary duties to
    its stockholders; provided, however, that the foregoing
    shall not affect the right of the Appointing Funds to designate
    an alternate Rhône Director.

    

    8

 

    (f) For so long as any directors designated by the
    Appointing Funds (or an Affiliate of an Appointing Fund)
    pursuant to Section 9.4 of the Warrant Agreement have been
    appointed to, and serve on, the Board, then such directors shall
    be considered “Rhône Directors” for purposes of
    this Agreement.

 

    6.3 Financial Statements.  For so
    long as Rhône and any of its Affiliates collectively own at
    least 8,333,334 shares of the Exchange Stock, the Company
    shall deliver to Rhône (for distribution to each Holder):

 

    (a) within ninety (90) days after the end of each
    Fiscal Year of the Company, a Consolidated balance sheet of the
    Company and its Subsidiaries as at the end of such Fiscal Year,
    and the related Consolidated statements of income or operations
    and cash flows for such Fiscal Year, setting forth in each case
    in comparative form the figures for the previous Fiscal Year,
    all prepared in accordance with GAAP, such Consolidated
    statements to be audited and accompanied by a report and opinion
    of a registered public accounting firm of nationally recognized
    standing or otherwise reasonably acceptable to Rhône, which
    report and opinion shall be prepared in accordance with
    generally accepted auditing standards and shall not be subject
    to any “going concern” or like qualification or
    exception or any qualification or exception as to the scope of
    such audit;

 

    (b) within forty-five (45) days after the end of each
    of the first three Fiscal Quarters of each Fiscal Year of the
    Company, a Consolidated balance sheet of the Company and its
    Subsidiaries as at the end of such Fiscal Quarter, and the
    related Consolidated statements of income or operations and cash
    flows for such Fiscal Quarter and for the portion of the
    Company’s Fiscal Year then ended, setting forth in each
    case in comparative form the figures for (i) such period
    set forth in the projections delivered pursuant to
    Section 6.3(d) hereof (if applicable), (ii) the
    corresponding Fiscal Quarter of the previous Fiscal Year and
    (iii) the corresponding portion of the previous Fiscal
    Year, such Consolidated statements to be certified by a
    responsible officer of the Company as fairly presenting the
    financial condition, results of operations and cash flows of the
    Company and its Subsidiaries as of the end of such Fiscal
    Quarter in accordance with GAAP, subject only to normal year-end
    audit adjustments and the absence of footnotes;

 

    (c) within thirty (30) days after the end of each of
    the first two Fiscal Months of each Fiscal Quarter of the
    Company, a financial report for the immediately preceding Fiscal
    Month in a format reasonably satisfactory to Rhône;

 

    (d) no later than within thirty (30) days prior to the
    end of each Fiscal Year, a copy of the approved annual budget of
    the Company and its Subsidiaries for the immediately following
    Fiscal Year; and

 

    (e) (i) copies of any reports and other written
    information delivered to the administrative agent under the ABL
    Credit Agreement and any agent under the French Credit Agreement
    and (ii) upon the request of Rhône, copies of any
    reports and other written information delivered to the lenders
    or their respective agents under the credit facilities of
    certain Subsidiaries of the Company organized in Japan and
    Australia.

 

    6.4 Rule 144 Reporting.  With
    a view to making available to the Holders the benefits of
    certain rules and regulations of the SEC which may permit the
    sale of the Exchange Stock to the public without registration,
    the Company agrees, so long as it is subject to the periodic
    reporting requirements of the Exchange Act, to use commercially
    reasonable efforts to:

 

    (a) make and keep public information available, as those
    terms are understood and defined in Rule 144(c)(1) or any
    similar or analogous rule promulgated under the Securities Act,
    at all times after the effective date of this Agreement;

 

    (b) file with the SEC, in a timely manner, all reports and
    other documents required of the Company under the Exchange
    Act; and

 

    (c) so long as Rhône and any of its Affiliates
    collectively own at least 8,333,334 shares of the Exchange
    Stock, furnish to such Holders forthwith upon request:
    (i) in the event the Company is no longer subject to the
    reporting requirements of Section 13 or 15(d) of the
    Exchange Act, a written statement by the Company as to its
    compliance with the reporting requirements of Rule 144
    under the Securities Act and of the Exchange Act; (ii) in
    the event the Company is subject to the reporting

    

    9

 

    requirements of Section 13 or 15(d) of the Exchange Act, a
    copy of the most recent annual or quarterly report of the
    Company; and (iii) such other reports and documents as the
    Holders may reasonably request in availing themselves of any
    rule or regulation of the SEC allowing them to sell any such
    securities without registration.

 

    6.5 Preemptive Rights.  So long as
    Rhône and any of its Affiliates collectively own at least
    8,333,334 shares of the Exchange Stock, upon any issuance
    for cash of any shares of Common Stock, rights or options to
    acquire Common Stock or securities convertible or exchangeable
    into Common Stock for cash, any Initial Holder or any of their
    Affiliates shall have additional subscription rights allowing
    such Initial Holder or Affiliate to maintain its proportionate
    ownership interest in the Company based on the ratio of
    (i) the Exchange Stock issued to or transferred to, and
    owned by, such Initial Holder or Affiliate (which, for this
    purpose, shall be calculated taking into account any Exchange
    Stock subsequently transferred to such Initial Holder or
    Affiliate by another Initial Holder or Affiliate) and
    (ii) the number of shares of Common Stock outstanding
    immediately prior to such issuance, without giving effect to any
    Warrants or the shares of Common Stock held by the Initial
    Holders or any of their Affiliates. The foregoing shall not
    apply to any issuance of Excluded Securities. For the avoidance
    of doubt, notwithstanding this Section 6.5, the preemptive
    rights set forth in Section 5.6 of the Warrant Agreement
    shall remain in effect.

 

    6.6 Consent Upon Certain
    Issuances.  So long as Rhône and any of
    its Affiliates collectively own at least 8,333,334 shares
    of the Exchange Stock, the Company shall not, without the prior
    written consent of Rhône in its sole discretion, issue
    shares of Common Stock (other than (i) issuances of
    Excluded Securities or (ii) issuances of Common Stock that
    are contemporaneously being sold pursuant to a bona fide
    underwritten public offering), at a price less than the lesser
    of (A) $4.50 per share of Common Stock and (B) the
    fair market value of the Common Stock.

 

    6.7 Affiliate Transactions.  So
    long as Rhône and any of its Affiliates collectively own at
    least 8,333,334 shares of the Exchange Stock, any issuance
    by the Company of any shares of Common Stock to, or repurchase
    by the Company of any shares of Common Stock from, any
    Affiliate, other than Excluded Securities, shall be on terms no
    less favorable to the Company than those obtainable by a party
    who is not an Affiliate.

 

		
	
    7.  
	
    MISCELLANEOUS.

 

    7.1 Agent.  The Holders appoint
    Rhône as their agent and authorize Rhône to bind, and
    take all actions in connection with this Agreement on behalf of,
    the Holders, including agreeing to amendments of this Agreement
    pursuant to Section 7.7 herein. The Company shall be
    entitled to rely on direction by Rhône on behalf of any
    Holder for all purposes hereunder.

 

    7.2 Removal of Legends.  In the
    event (i) the Exchange Stock is registered under the
    Securities Act or (ii) the Company is presented with an
    opinion of counsel reasonably satisfactory to the Company that
    transfers of the Exchange Stock do not require registration
    under the Securities Act, the Company shall direct its transfer
    agent, and the transfer agent shall, upon surrender by a Holder
    of its certificates evidencing such Exchange Stock, exchange
    such certificates for certificates without the legends referred
    to in Section 2.2(e).

 

    7.3 Notices.  Any notice, demand or
    delivery to the Company or Rhône authorized by this
    Agreement shall be sufficiently given or made when mailed if
    sent by first-class mail, postage prepaid, addressed to the
    Company or Rhône, as applicable, as follows:

 

    If to the Company:

 

    Quiksilver, Inc.

    15202 Graham St.

    Huntington Beach, CA 92649

    Fax: (734) 477-1370

    Attention:  General Counsel

    

    10

 

    With a copy to:

 

    Skadden, Arps, Slate, Meagher & Flom LLP

    300 South Grand Avenue

    Los Angeles, CA 90071-3144

    Fax: (213) 621-5493

    Attention:  Brian J. McCarthy and K. Kristine Dunn

 

    If to Rhône:

 

    Rhône Capital III L.P.

    630 Fifth Avenue, 27th Floor

    New York, NY 10111

    Fax: (212) 218-6789

    Attention:  Baudoin Lorans and M. Allison Steiner

 

    With a copy to:

 

    Sullivan & Cromwell LLP

    125 Broad Street

    New York, New York 10004-2498

    Fax: (212) 291-9116

    Attention:  Richard A. Pollack

 

    or such other address as shall have been furnished to the party
    giving or making such notice, demand or delivery.

 

    Any notice required to be given by the Company to the Holders
    pursuant to this Agreement shall be made by mailing by
    registered mail, return receipt requested, to the Holders at
    their respective addresses shown on the register of the Company
    or, if any such Holder is an Initial Holder, to its respective
    address shown on Schedule I attached hereto. Any notice
    that is mailed in the manner herein provided shall be
    conclusively presumed to have been duly given when mailed,
    whether or not the Holder receives the notice.

 

    7.4 Applicable Law.  This Agreement
    shall be governed by, and construed in accordance with, the laws
    of the State of New York, including, without limitation,
    Section 5-1401
    of the New York General Obligations Law.

 

    7.5 Persons Benefiting.  This
    Agreement shall be binding upon and inure to the benefit of the
    Company and Rhône, and their successors, assigns,
    beneficiaries, executors and administrators, and the Holders
    from time to time. Nothing in this Agreement is intended or
    shall be construed to confer upon any Person, other than the
    Company, Rhône and the Holders, any right, remedy or claim
    under or by reason of this Agreement or any part hereof.

 

    7.6 Counterparts.  This Agreement
    may be executed in any number of counterparts, each of which
    shall be deemed an original, but all of which together
    constitute one and the same instrument.

 

    7.7 Amendments.

 

    (a) Neither this Agreement nor any provisions hereof shall
    be waived, modified, changed, discharged or terminated other
    than in accordance with Section 7.7(b).

 

    (b) With the consent of Rhône, the Company may from
    time to time (i) supplement or amend this Agreement to cure
    any ambiguity, to correct or supplement any provision contained
    herein which may be defective or inconsistent with any other
    provisions herein, or to make any other provisions with regard
    to matters or questions arising hereunder and (ii) modify
    the Agreement for the purpose of adding any provisions to or
    changing in any manner or eliminating any of the provisions of
    this Agreement or modifying in any manner the rights of the
    Holders hereunder.

    

    11

 

    7.8 Headings.  The descriptive
    headings of the several Articles and Sections of this Agreement
    are inserted for convenience and shall not control or affect the
    meaning or construction of any of the provisions hereof.

 

    7.9 Entire Agreement.  This
    Agreement and the other agreements referred to herein constitute
    the entire agreement and supersede all prior agreements and
    understandings, both written and oral, between the parties with
    respect to the subject matter hereof.

 

    7.10 Limitation of Liability.  No
    party to this Agreement shall be liable to any other party for
    any consequential, indirect, special or incidental damages under
    any provision of this Agreement or for any consequential,
    indirect, penal, special or incidental damages arising out of
    any act or failure to act hereunder even if that party has been
    advised of or has foreseen the possibility of such damages.

    

    12

 

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

 

    QUIKSILVER, INC.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

    ROMOLO HOLDINGS C.V.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

    TRITON SPV L.P.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

    TRITON ONSHORE SPV L.P.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

    TRITON OFFSHORE SPV L.P.

 

			
	 	    By: 
	
        

    Name:     

    Title:

    

    13

 

    TRITON COINVESTMENT SPV L.P.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

    RHÔNE CAPITAL III L.P.

 

			
	 	    By: 
	
        

    Name:     

    Title:

 

    [Signature Page to Stockholder Agreement]

    

    14

 

    Schedule I

 

    Notice
    Addresses of Initial Holders

 

    Romolo Holdings C.V.

    c/o Numitor
    Governance S.à r.l.

    c/o Rhône
    Group L.L.C.

    630 5th Avenue, 27th Floor

    New York, NY 10111

 

    Triton SPV L.P.

    c/o Triton
    GP SPV LLC

    c/o Rhône
    Capital III L.P.

    630 5th Avenue, 27th Floor

    New York, NY 10111

 

    Triton Onshore SPV L.P.

    c/o Triton
    GP SPV LLC

    c/o Rhône
    Capital III L.P.

    630 5th Avenue, 27th Floor

    New York, NY 10111

 

    Triton Offshore SPV L.P.

    c/o Triton
    GP SPV LLC

    c/o Rhône
    Capital III L.P.

    630 5th Avenue, 27th Floor

    New York, NY 10111

 

    Triton Coinvestment SPV L.P.

    c/o Triton
    GP SPV LLC

    c/o Rhône
    Capital III L.P.

    630 5th Avenue, 27th Floor

    New York, NY 10111

    

    15

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